FINANCIAL ASSESSMENT OF SYNERGIES AND RISKS IN CREATIVE M&AS: A CASE STUDY OF THE WPP GROUP

Abstract

This article analyzes the financial strategies adopted by the WPP Group — one of the world’s largest communication and marketing conglomerates — in the acquisition and integration processes of companies in Latin America, with a focus on maximizing synergies and mitigating post-acquisition risks. The research, qualitative and exploratory in nature, is based on documentary analysis of public data related to four case studies: F.biz, Ogilvy Brazil, Essence, and VMLY&R. The results indicate that the financial structuring of the operations — especially through mechanisms such as earn-out clauses, decentralized governance, and incentive alignment — directly impacts strategic and operational performance in the long term. It is also evident that factors such as talent retention, adaptive process standardization, and cultural integration are key determinants for value creation in sectors based on intangible assets. The study highlights the importance of adapting global strategies to the institutional and cultural context of Latin America, which is marked by exchange rate volatility, regulatory asymmetries, and operational challenges. As a theoretical contribution, the article proposes an analytical framework that integrates corporate finance, risk management, and organizational strategy, aimed at evaluating acquisitions in emerging markets. From a practical standpoint, the article offers insights for CFOs, controllers, and investors in analyzing synergies and risks in M&A within the creative sector, reinforcing the role of financial decisions in preserving value in the post-deal phase.