<SEC-DOCUMENT>0001144204-15-055649.txt : 20160208
<SEC-HEADER>0001144204-15-055649.hdr.sgml : 20160208
<ACCEPTANCE-DATETIME>20150918173112
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001144204-15-055649
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20150918

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MDC PARTNERS INC
		CENTRAL INDEX KEY:			0000876883
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-ADVERTISING AGENCIES [7311]
		IRS NUMBER:				980364441
		STATE OF INCORPORATION:			A6
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		745 FIFTH AVENUE, 19TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10151
		BUSINESS PHONE:		646 429 1800

	MAIL ADDRESS:	
		STREET 1:		745 FIFTH AVENUE, 19TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10151

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MDC CORP INC
		DATE OF NAME CHANGE:	20001204

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MDC COMMUNICATIONS CORP
		DATE OF NAME CHANGE:	19961028

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MDC CORPORATION
		DATE OF NAME CHANGE:	19950419
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: center">September 18, 2015</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Via Edgar</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Larry Spirgel</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Ms. Celeste Murphy<BR>
Division of Corporation Finance<BR>
Securities and Exchange Commission<BR>
100 F Street N.E.<BR>
Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><B>RE:</B></TD><TD><B>MDC Partners Inc.</B></TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"></TD><TD><B>Form 10-K for the Year Ended December 31, 2014</B></TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"></TD><TD><B>Filed March 2, 2015</B></TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"></TD><TD><B><U>File No. 001-13718</U></B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Mr. Spirgel and Ms. Murphy:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Set forth below are the responses of MDC
Partners Inc. (the &ldquo;Company&rdquo;) to the comments of the Staff of the Division of Corporation Finance of the Securities
and Exchange Commission (the &ldquo;Staff&rdquo;, &ldquo;Commission&rdquo; or &ldquo;SEC&rdquo;), which were set forth in your
letter dated August 13, 2015 (the &ldquo;August 13th Letter&rdquo;) regarding the Company&rsquo;s above-referenced audit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The responses to the Staff&rsquo;s comments
are provided in the order in which the comments were set out in the August 13th Letter and are numbered correspondingly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Item 1. Business</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Competition, Page 4</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><B>1.</B></TD><TD><B>We note that your subsidiary firms cooperate through referrals and the sharing of both services and expertise. Please provide
additional information as to how any cross-selling arrangements are structured (such as from the Strategic Marketing Services segment
to the Performance Marketing Services segment) and, if material, the degree to which referrals and cross-selling contribute to
organic revenue growth.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company confirms that its subsidiary
firms cooperate through referrals and the sharing of both services and expertise, which do contribute to organic revenue growth.
However, the Company does not have any contractual or formal cross-selling arrangements in place. Instead, the Company may, for
example, coordinate a joint pitch initiative in which various agencies that have distinct marketing services and disciplines may
be jointly presented to a potential new client, such as traditional advertising, public relations and/or event marketing services.
Each participating agency is then compensated by clients based upon their respective agency's scope of work for a particular engagement
or project. Subsidiary firms also may refer another agency to its existing clients if a client need exists that is not within the
service offering of a particular firm. In addition, if a specific agency is unable to service a potential new client due to an
existing conflict, it may refer that client to another MDC partner agency for services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Item 1A. Risk Factors</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>We have significant contingent obligations related to
deferred acquisition consideration and minority interests in our subsidiaries, which will require us to utilize our cash flow and/or
to incur additional debt to satisfy, page 6.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><B>2.</B></TD><TD><B>We note your disclosure that deferred acquisition consideration and payments to minority shareholders will be a significant
use of the Company&rsquo;s liquidity in the foreseeable future. Please provide management&rsquo;s view of the future trajectory
and quantifications of both deferred acquisition totals and redeemable non-controlling interests. Please also provide the rationale
and business reasons for structuring your various acquisitions in part with a deferred consideration component. Please also expand
your discussion of the drivers of the net changes in deferred acquisition totals with an emphasis on detailing to what degree increases
can be attributed to acquisitions of new businesses, compounding past deferred considerations that have remained outstanding (due
to subsidiary revenue or growth targets not being met), or downward redemption value adjustments.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">The
Company confirms that its obligations in respect of previous and future acquisitions are expected to be a significant use of the
Company&rsquo;s liquidity in the foreseeable future. The Company intends to manage its acquisition strategy, including acquisitions
of incremental interests in existing subsidiaries, in a manner consistent with de-leveraging its balance sheet (specifically a
reduction of the ratio of Debt-to-Adjusted EBITDA) over time while continuing to satisfy its operating and capital expenditure
obligations, cash interest obligations, and dividend policy. The Deferred Acquisition Consideration, Redeemable Noncontrolling
Interests and Noncontrolling Interests on the Company&rsquo;s balance sheet, in aggregate, represent the estimated present value
of the cost to purchase the outstanding incremental interests in its existing subsidiaries and complete purchase obligations with
respect to prior acquisitions. However, the specific future trajectory and quantification of these acquisition-related amounts
depend on a number of factors, including but not limited to the underlying future financial performance of certain prior acquisitions,
the existence of attractive future acquisition opportunities and the underlying financial performance of such acquired companies
during any applicable &ldquo;earn-out&rdquo; period. Accordingly, management does not have a view of the future trajectory and
</FONT>quantifications of both deferred acquisition totals and redeemable non-controlling interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-indent: 0.5in"><FONT STYLE="background-color: white">In
the Company&rsquo;s marketing communication services industry, the success of acquisitions is largely dependent on retaining and
incentivizing key personnel. Therefore, the Company&rsquo;s acquisitions typically include deferred payments that are contingent
upon future financial performance in order to align the key operators of any business to its long-term financial success (&ldquo;earn-outs&rdquo;).
Specifically, the Company&rsquo;s model of &ldquo;Perpetual Partnership&rdquo; often involves acquiring a majority interest rather
than a 100% interest and leaving management owners with a significant financial incentive in the performance of the acquired entity
for a minimum period of time, typically not less than five years. Upon the subsequent acquisition of any remaining incremental
interests, the Company estimates and records on its balance sheet additional deferred liabilities, together with a corresponding
reduction in amounts previously recorded as redeemable or non-redeemable noncontrolling interests, with the offset to additional
paid in capital. When a portion of the consideration is contingent on continued employment, it is recorded as stock-based compensation
in the Company&rsquo;s results of operations over the required retention period.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">Please
note the Company has provided enhanced disclosure in its Quarterly Report on Form 10-Q for the period ended June 30, 2015 (footnote
4 to the financial statements) regarding acquisition-related accounting and rationale for acquisition structuring. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">During
the six months ended June 30, 2015, the Company completed one new acquisition which added deferred acquisition liabilities on the
Company&rsquo;s balance sheet with an estimated present value at acquisition date of approximately $25.1 million and redeemable
noncontrolling interests with a present value of approximately $2.0 million. The Company also acquired incremental interests in
several existing subsidiaries which added deferred acquisition liabilities with an estimated present value at acquisition date
of approximately $77.1 million and reduced redeemable noncontrolling interests by approximately $62.6 million and noncontrolling
interests by approximately $8.7 million. The difference between the estimated purchase price for these incremental acquisitions
and the previously-recorded redeemable and non-redeemable noncontrolling interests was recorded as additional paid in capital of
$33.2 million. In addition, for the six months ended June 30, 2015, the Company recorded an increase in the estimated redemption
value of the redeemable noncontrolling interests of $14.7 million (with an offset to additional paid in capital) due to growth
of the relevant underlying businesses, and reduced deferred acquisition liabilities by $10.5 million&nbsp;due to net underperformance
of the relevant underlying businesses against previous Company expectations (with such reduction recorded as income in the Company&rsquo;s
results of operations).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">The
Company confirms that it will continue to provide enhanced disclosure in future SEC filings regarding the foregoing effects of
acquisition-related activity on the Company&rsquo;s balance sheet.&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Item 7. Management&rsquo;s Discussion and Analysis of
Financial Condition and Results of Operations</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Executive Summary, page 15</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><B>3.</B></TD><TD><B>We note that you manage your business &ldquo;by monitoring several financial and non-financial performance indicators&rdquo;
such as revenues, operating expenses, and capital expenditures. In addition to these key indicators, please provide any non-financial
indicators relating to the growth potential, financial health, and expectations of business performance of your subsidiary companies.
Please refer to Securities Act Release No. 33-8350. For example, please see Section III B.1.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to monitoring the foregoing
financial indicators, the Company assesses and monitors several non-financial performance indicators relating to the business performance
of our subsidiary companies. These indicators may include an agency&rsquo;s recent new client account win/loss record; the depth
and scope of a pipeline of potential new client account activity; the overall quality of the services provided to clients; and
the relative strength of the Company&rsquo;s next generation management team that is in place as part of a potential succession
plan to succeed the current senior executive team. <FONT STYLE="background-color: white">The Company confirms that it will provide
enhanced disclosure in future SEC filings regarding these indicators.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Year Ended December 31, 2014 Compared to Year Ended December
31, 2013</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><B>4.</B></TD><TD><B>Please expand and revise your discussion under results of operations for all periods to provide a more detailed analysis
of the reasons underlying each material quantitative change in operating measures from period to period. We note that while you
discuss certain factors to which changes are attributable, you do not quantify certain of these factors nor analyze the underlying
business reasons for the changes. For example, you attribute an increase in operating profits and operating margins in your Strategic
Marketing Services segment due to &ldquo;increases in revenues, decrease[s] in total staff costs, and decreases in office and general,
offset by an increase in direct costs.&rdquo; However, you do not fully analyze the underlying reasons for these changes. Where
there are material fluctuations individually or in aggregate, we believe your disclosures could be improved by ensuring that all
material factors are analyzed. </B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company confirms that, to the extent
material, it will expand its disclosure in its future SEC filings to include a more detailed analysis of the reasons underlying
each material quantitative change in operating measures from period to period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Strategic Marketing Services, page 21</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Strategic Marketing Services, page 24</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><B>5.</B></TD><TD><B>Please provide in MD&amp;A greater transparency of the underlying reasons for your organic growth in revenues and profitability.
Specifically describe in this discussion the drivers of your organic revenue growth (i.e. greater ad spend by existing clients,
increase in the number of clients, new service offerings, and/or favorable pricing).</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company confirms that, to the extent
material, it will expand its disclosure in its future SEC filings to include more detail on the underlying reasons for organic
growth in revenues and profitability. As noted, the reasons for such organic revenue growth are primarily due to greater and expanded
ad spend by existing clients (often following a recently successful campaign or marketing initiative), and new client account wins
by the Company&rsquo;s subsidiary agencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Goodwill and Indefinite-Lived Intangible, page 50</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><B>6.</B></TD><TD><B>We note you disclose you have ten reporting units with reported goodwill. In your 2012 10-K, you disclosed that &ldquo;each
partner firm that has reported goodwill will be tested separately as each partner firm qualifies as a reporting unit under the
Accounting Standards Codification guidance.&rdquo; With a view towards expanded disclosure, please tell us if you revised your
reporting units and how you now group the partner firms for purposes of testing goodwill for impairment. If so:</B></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>tell why you made this change;</B></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>tell us if you would have recognized an impairment in goodwill under the previous methodology; and</B></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>provide us a summary that identifies, by reporting unit, each partner firm included within the unit, the carrying amount
of each partner firm&rsquo;s goodwill, and the amount of any excess fair value or impairment.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company reports in two segments &ndash;
Strategic Marketing Services (&ldquo;SMS&rdquo;) and Performance Marketing Services (&ldquo;PMS&rdquo;), consistent with the review
by our CODM and management of the overall performance of the segments together with the individual operating results of the subsidiary
partner firms as a basis for making decisions regarding the allocation of resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Until 2012, the Company identified each subsidiary
partner firm with reported goodwill within the SMS and PMS segments as a separate reporting unit, consistent with the review by
our CODM and management of the individual operating results of the firms.</P>






<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Beginning in 2013, the Company identified
each subsidiary partner firm with reported goodwill as a component business within either the SMS or PMS segment and aggregated
the component businesses with similar economic characteristics into separate reporting units within each of the segments. This
change was consistent with the review by our CODM and management of the overall performance of the segments as a basis for making
decisions regarding the allocation of resources. In making this change, the Company considered the effect of changes resulting
from the realignment of subsidiary partner firms in order to position the Company for future business development efforts and revenue
growth (for example, the Assembly media group).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Similar economic characteristics were assessed
based on the expected long-term average gross margins of the component businesses and other aggregation criteria in ASC 280, as
well as the related guidance in ASC 350. The subsidiary partner firms with reported goodwill were aggregated into seven reporting
units in 2013 and 10 reporting units in 2014. Changes to the reporting units in 2014 were made based largely on the Company&rsquo;s
evaluation of the financial performance of its subsidiary partner firms and the acquisition of new subsidiary partner firms during
the year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In 2013, the Company performed Step 1 of
the goodwill impairment test for each of its SMS and PMS reporting units. The fair value of each reporting unit exceeded its carrying
amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In 2014, the Company determined that it
was not more likely than not that the fair value of any of its SMS reporting units was less than its carrying amount. This determination
was based on a qualitative assessment of factors affecting the fair value or carrying amount of each SMS reporting unit, and took
into consideration the excess of the fair value of each SMS reporting unit over its carrying amount based on the Company&rsquo;s
testing in the prior year. Therefore, the Company did not perform Step 1 of the goodwill impairment test for its SMS reporting
units. The Company performed Step 1 of the goodwill impairment test for each of its PMS reporting units. The fair value of each
PMS reporting unit exceeded its carrying amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Because goodwill is tested for impairment
at the reporting unit level, the Company was not required under GAAP to also test goodwill for impairment at a lower level of aggregation
as in 2012, and the Company did not otherwise do so. However, the Company did not identify factors indicating potential goodwill
impairment associated with individual subsidiary partner firms with reported goodwill included in any of the reporting units in
2013 or 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are providing the Staff on a confidential
and supplemental basis in a separate letter dated today additional detail concerning the goodwill of our reporting units.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company hereby acknowledges the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 54.3pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the Company is responsible for the adequacy and accuracy of the disclosure in its filings;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 54.3pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action
with respect to the filings; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 54.3pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the
federal securities laws of the United States.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 28.05pt">Please direct any questions concerning
the above responses to the undersigned (telephone: (646) 429-1818; fax: (212) 937-4365).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 28.05pt">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 28.05pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Very truly yours,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 35%; border-bottom: Black 1pt solid">/s/ David Doft</TD>
    <TD STYLE="width: 15%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">David Doft</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Chief Financial Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">cc:</TD><TD>Kathryn Jacobson, Senior Staff Accountant</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Robert S. Littlepage, Accounting Branch Chief</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">William Mastrianna, Attorney-Advisor</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Scott Kauffman, Chairman and Chief Executive
Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mitchell Gendel, General Counsel &amp; Corporate
Secretary</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Christine LaPlaca, SVP Accounting and Financial
Reporting</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Members of the Audit Committee of Board
of Directors of MDC Partners Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Paul Curnin and Cheryl Scarboro (Simpson
Thacher &amp; Bartlett LLP)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Robert Trinchetto, BDO USA, LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>



<P STYLE="margin: 0"></P>

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