September 26,2024
PALAZZO Advises Donut Digital on its Sale to New Engen, a Portfolio Company of Insignia Capital Group
Full-service content studio delivers high-impact, social-first content across the customer journey, strengthening New Engen’s creative foundation
PALAZZO served as the exclusive financial advisor to Donut Digital, a creative-led performance marketing agency based in Manhattan Beach, California.
Founded in 2021, Donut Digital has established a reputation as one of the most innovative and fastest growing performance agencies through a highly differentiated creative-centric approach and efficient in-house production capabilities. Donut Digital’s acquisition will allow New Engen to create a full-service content studio, meeting client needs across all stages of the customer journey, from short form video and user generated content, to premium CTV/OTT content.
“We’re beyond thrilled to bring Donut Digital’s capabilities to New Engen as creative has always been one of the most important levers to drive brand growth,” said New Engen founder and CEO, Justin Hayashi. “Donut Digital’s unique ability to produce native, social-first content at high capacity for clients across numerous verticals will support New Engen in expanding our creative foundation. Together, we share a vision and are positioned to unlock even greater opportunities for our clients.”
Co-founders of Donut Digital, Alice Woo, Ari Jessel, and Brian Kim, who led Honey’s marketing before its $4B acquisition by PayPal, started their agency to address the challenges they faced as brand leaders. Their path mirrors that of New Engen CEO Justin Hayashi, who helped e-commerce company Zulily reach $1B in revenue before founding his own agency.
Donut Digital’s Alice Woo said, “We’re excited to join forces with New Engen. Our teams share a commitment to innovation and a deep understanding of what brands need today to succeed across digital platforms. This partnership allows us to continue delivering for our clients while expanding our capabilities with the media expertise and measurement talent that New Engen brings to the table.”
Following recent acquisitions of Acorn Influence and LT Partners, the addition of Donut Digital to New Engen’s portfolio is another step in the company’s vision of building a premier digital marketing agency.
“Working with PALAZZO throughout our acquisition process was an absolute pleasure. Their subject matter expertise and strategic insights were invaluable, but what truly set them apart was their shared ‘do whatever it takes’ mindset, which mirrored our own agency’s approach. More than just advisors, they were true thought partners, providing valuable insights at every stage and ensuring we made informed decisions. Their professionalism and commitment to excellence were evident in every interaction, and they worked with remarkable speed to keep the process on track. Thanks to their unwavering dedication and strategic guidance, we successfully closed the deal, and I couldn’t be more grateful for their partnership.” – Brian Kim, Co-Founder, Donut Digital
Additional Resources
Donut Digital New Engen Insignia Capital Group Press Release