Sitrick and Company Returns to Founder After 17-Year Corporate Ownership

Resources Connection Inc. has agreed to sell its crisis communications subsidiary, Sitrick and Company, back to its founder Mike Sitrick. The transaction is expected to close within 45 days of the announcement, though the company did not publicly disclose full financial terms.

Sitrick originally founded the Los Angeles-based agency in 1989 and sold it to Resources Connection in 2009.

Transaction Details and Financial Terms

The 2026 buyback reverses a 17-year corporate ownership arrangement. The original 2009 acquisition was valued at approximately US$43.3 million. The 2026 buyback is structured around a membership interest transfer valued at US$1.4 to US$2.3 million, tied to realizable client receivables.

As part of the deal terms, Resources Connection agreed to pay Sitrick US$4.0 million in severance-equivalent cash, accelerate equity vesting for continuing employees, and retain certain liabilities including office leases.

Sitrick said the original sale included an explicit operational guarantee. "When I sold the company, I was told and guaranteed that I'd have the ultimate responsibility for the strategy, direction, management and operation of the company," he said. "They kept their word. They never interfered. They never tried to tell me what to do or how to do it."

Strategic Review Triggered by New Leadership

Resources Connection CEO Roger Carlile, who joined the company in November 2025, initiated the divestiture as part of a broader portfolio review. In an internal memo, Carlile stated the company had taken "a hard look at our portfolio to identify where we meaningfully differentiate, where clients consistently choose us, and where we can build lasting advantage."

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Carlile described Sitrick and Company as "a strong business with a talented team and a distinct identity in the market" but determined it fell outside Resources Connection's core focus areas.

Resources Connection reported Q3 2026 revenue of US$107.9 million, down from US$129.4 million in the same period the prior year. The company recorded a net loss of US$9.5 million in the quarter, an improvement over the prior year's US$44 million loss.

Boutique Model Against a Consolidating Industry

The Sitrick transaction runs counter to the dominant direction of global communications industry mergers. Omnicom's acquisition of Interpublic Group created a combined entity with approximately US$25 billion in revenue. WPP merged BCW and Hill & Knowlton into Burson, forming a firm with more than 6,000 employees.

Agency merger and acquisition deal volume has declined sharply over the past decade, falling from 127 deals in 2016 to 52 in 2024. Data and technology assets accounted for 64% of agency acquisitions over that period, reflecting a shift away from traditional communications firm purchases.

Sitrick said his post-buyback plan is to maintain the agency's current structure and leadership while selectively adding senior staff. "I wanted to stay as a boutique," he said, "because the part of the business I like the best is practicing."

Sitrick and Company Background

Sitrick and Company specializes in crisis management, reputation management, corporate communications, restructurings, and litigation support. The firm is headquartered in Los Angeles, with offices in New York and Washington, DC.

The transaction is expected to close within 45 days of the announcement. No successor ownership structure was disclosed.