<SEC-DOCUMENT>0001144204-15-070978.txt : 20160208
<SEC-HEADER>0001144204-15-070978.hdr.sgml : 20160208
<ACCEPTANCE-DATETIME>20151215163421
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001144204-15-070978
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20151215

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
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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-top: 0pt; text-align: center; margin-bottom: 0pt">December 15, 2015</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4in; text-indent: 0.5in">&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"><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>

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    <TD STYLE="width: 5%; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 5%; padding: 0; text-indent: 0"><B>RE:</B></TD>
    <TD STYLE="width: 90%; padding: 0; text-indent: 0"><B>MDC Partners Inc.</B></TD></TR>
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    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><B>Form 10-K for Fiscal Year Ended December 31, 2014 </B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0"><B>&nbsp;</B></TD>
    <TD STYLE="padding: 0; text-indent: 0"><B>&nbsp;</B></TD>
    <TD STYLE="padding: 0; text-decoration: underline; text-indent: 0"><B>Filed March 2, 2015</B></TD></TR>
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    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><B>Response Dated December 4, 2015</B></TD></TR>
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    <TD STYLE="padding: 0; text-indent: 0"><B>&nbsp;</B></TD>
    <TD STYLE="padding: 0; text-indent: 0"><B>&nbsp;</B></TD>
    <TD STYLE="padding: 0; text-decoration: underline; text-indent: 0"><B><U>File No. 001-13718</U></B></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&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">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 is the response of MDC Partners
Inc. (the &ldquo;Company&rdquo;) to the comment 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 was set forth in your letter dated
December 4, 2015 (the &ldquo;December 4th Letter&rdquo;) regarding the Company&rsquo;s above-referenced filing.</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">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Goodwill and Indefinite-Lived Intangible, pages 50-51</U></B></P>

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

<OL START="1" STYLE="margin-top: 0in; list-style-type: decimal; font-family: Times New Roman, Times, Serif">

<LI STYLE="margin: 0pt 0"><B>We note your response to comment 4. However, we continue to question why it is appropriate to use
the same discount rate for all of your reporting units. It is unclear why a market participant would utilize an expected rate of
return or WACC, <I>&ldquo;which is used in combination with the other reporting units included within the partner firm network&rdquo;</I>,
instead of a rate applicable to a reporting unit on stand-alone basis. Please advise and explain to us why an investor would not
assign different risk premiums to each of your reporting units.</B></LI>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">For its goodwill impairment testing, the
Company uses a discounted cash flow (&ldquo;DCF&rdquo;) method to estimate the fair value of each reporting unit on a stand-alone
basis.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In applying the DCF method, the Company
does not adjust for risk specific to each reporting unit in the discount rate; rather, the Company adjusts for risk in the estimates
of future cash flows of each reporting unit. As previously noted, the estimates of future cash flows of each reporting unit are
developed using assumptions that produce estimates that incorporate a spectrum of possible cash flows of each reporting unit from
a market participant perspective. The Company discounts its risk-adjusted estimates of future cash flows by a market rate.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The market rate is represented by a weighted
average cost of capital (&ldquo;WACC&rdquo;) that is benchmarked against the average returns on debt and equity of comparable peer
companies (market participant investors). In the Company&rsquo;s judgment, this WACC is commensurate with the risk inherent in
the risk-adjusted estimates of future cash flows of each reporting unit and represents the rate of return that would be required
by a market participant investor in each reporting unit. The Company believes it is appropriate to use this WACC to estimate the
fair value of each reporting unit.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company recognizes that there are some
differences between and among the reporting units (for example, with respect to size) that may not be fully captured in its risk-adjusted
estimates of future cash flows. It is possible that these differences could cause a market participant investor to demand a higher
rate of return for some reporting units than for others (i.e., assign a different risk premium to some reporting units). This,
however, is a judgment that would enter into the assumptions market participant investors would make. In the Company&rsquo;s judgment,
differences between and among the reporting units would not necessarily cause a market participant investor to demand a higher
rate of return for any of the reporting units. Considerations in that regard are discussed below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The subsidiary partner firms included in
the Company&rsquo;s reporting units operate in the same industry (i.e., the marketing/advertising industry), provide a range of
marketing/advertising services, serve similar clients in similar industries (and, in some cases, the same clients), and are used
in combination with each other to both market and provide these services. Further, the main economic components of each subsidiary
partner firm are essentially the same. Therefore, the substantive risks facing individual subsidiary partner firms extend across
the partner firm network.</P>

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

<P STYLE="margin: 0pt 0">Even if differences between and among the reporting units would have caused a market participant investor
to demand a higher rate of return for some of the reporting units than for others (i.e., assign a different risk premium to some
reporting units), the Company&rsquo;s sensitivity analysis (updated to consider the impact of a 3% increase in the WACC) shows
that this would not have changed the results of its goodwill impairment testing. For each reporting unit for which the Company
calculated fair value using a DCF method, the fair value of each reporting unit would have remained in excess of its carrying amount
and passed Step 1 of the goodwill impairment test.</P>



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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">As previously noted, the Company&rsquo;s
goodwill accounting policies and procedures require assessments of the discount rate and other assumptions used in the DCF method
as well as a sensitivity analysis to assess the effect of a change in the assumptions on the fair value of each reporting unit.
In performing these assessments, the Company will assess for changes in the risk profile of each reporting unit and assess the
elements of its discount rate(s) in the context of the risk profile of each reporting unit.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="background-color: white">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: center">*&#9;*&#9;*&#9;*&#9;*</P>

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<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>

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    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Very truly yours,</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
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    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
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    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; border-bottom: Black 1pt solid">/s/ David Doft</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">David Doft</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Chief Financial Officer</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
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    <TD STYLE="width: 5%; padding: 0; text-indent: 0">cc:</TD>
    <TD STYLE="width: 95%; padding: 0; text-indent: 0">Kathryn Jacobson, Senior Staff Accountant</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Robert S. Littlepage, Accounting Branch Chief</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">William Mastrianna, Attorney-Advisor</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities and Exchange Commission</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Scott Kauffman, Chairman and Chief Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Mitchell Gendel, General Counsel &amp; Corporate Secretary</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Christine LaPlaca, SVP Accounting and Financial Reporting</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Members of the Audit Committee of Board of Directors of MDC Partners Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Paul Curnin and Cheryl Scarboro (Simpson Thacher &amp; Bartlett LLP)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Robert Trinchetto, BDO USA, LLP</TD></TR>
</TABLE>


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