<SEC-DOCUMENT>0001144204-16-130582.txt : 20171211
<SEC-HEADER>0001144204-16-130582.hdr.sgml : 20171211
<ACCEPTANCE-DATETIME>20161031163847
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001144204-16-130582
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20161031

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>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 67.15pt 0pt 0; text-align: right; color: #2A2A2A">October 31, 2016</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">&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; color: #2A2A2A; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify"><B><I><U>Via
Edgar</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 30.55pt; color: #2A2A2A">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; color: #2A2A2A; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">Mr.
Larry Spirgel</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; color: #2A2A2A; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">Mr.
Robert Littlepage</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; color: #2A2A2A; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">Division
of Corporation Finance Securities and Exchange Commission 100 F Street N.E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; color: #2A2A2A; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">Washington,
D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; color: #2A2A2A; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; color: #2A2A2A; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; color: #2A2A2A; text-indent: 16.5pt">RE:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MDC
Partners Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 71pt 0pt 5.4pt; color: #2A2A2A; text-indent: 47.15pt"><B>Form 10-K
for Fiscal Year Ended December 31, 2015</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 71pt 0pt 5.4pt; color: #2A2A2A; text-indent: 47.15pt"><B>Filed
February 26, 2016</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 71pt 0pt 5.4pt; color: #2A2A2A; text-indent: 47.15pt"><B>SEC Response
Dated October 5, 2016</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 71pt 0pt 5.4pt; color: #2A2A2A; text-indent: 47.15pt"><B><U>File
No. 001-13718</U></B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; color: #2A2A2A; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify"></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"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; color: #2A2A2A; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in; text-align: justify">Dear
Mr. Spirgel and Mr. Littlepage:&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0.25in; text-align: justify"><FONT STYLE="color: #2A2A2A">Set
forth below is the response of MDC Partners Inc. (the &ldquo;Company&rdquo; or &ldquo;MDC&rdquo;) to the correspondence of the
Staff of the Division of Corporation Finance of the Securities and Exchange Commission (the &ldquo;Staff&rdquo;, the &ldquo;Commission&rdquo;,
or &ldquo;SEC&rdquo;), which was set forth in your letter dated October 5, 2016 </FONT>(the &ldquo;October 5<SUP>th</SUP> Letter&rdquo;)
<FONT STYLE="color: #2A2A2A">regarding the Company's above-referenced filing.</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-top: 0pt; margin-bottom: 0pt; text-align: center; color: #2A2A2A">*&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-top: 0pt; margin-bottom: 0pt; text-align: center; color: #2A2A2A">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: #2A2A2A"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 75.5pt 0pt 63pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Management&rsquo;s Discussion and Analysis of Financial
Condition and Results of Operations , page 16</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>Advertising and Communications Segment, page 20 and 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>1.</B></TD><TD STYLE="text-align: justify"><B>We note in your response to comment 1 it is your belief that organic revenue growth is the &ldquo;most
accurate representation of the financial performance of its businesses, as it represents the impact of the Company&rsquo;s management
oversight&hellip; and the network benefits of inclusion in the broader portfolio of firms.&rdquo; You further state that &ldquo;this
approach appropriately credits the Company with changes in performance of the business that take place under the Company&rsquo;s
stewardship.&rdquo; Please accompany the disclosure you propose to make in your letter dated June 15, 2016 with an explanation
of why you believe revenue growth (decline) as defined provides useful information to investors. Also, specifically address in
this disclosure:</B></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: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><B>The fact that other companies may calculate organic revenue growth using a different methodology;</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 STYLE="text-align: justify"><B>Your ability to fully integrate newly acquired businesses and the timing of this integration;</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 STYLE="text-align: justify"><B>The fact that revenue earned immediately after a business acquisition is consummated is dependent
upon work and marketing performed prior to management&rsquo;s oversight;</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 STYLE="text-align: justify"><B>The impact of work in progress, existing contracts and backlog of the acquired businesses on
the calculation of organic revenue growth (decline);</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 STYLE="text-align: justify"><B>The extent acquired management teams impact the performance of the acquired businesses post-acquisition;
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 STYLE="text-align: justify"><B>Why management is taking credit for any positive developments in an acquired business that may
have taken place during the period preceding the acquisition and how investors should consider this circumstance when assessing
performance.</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; color: #2A2A2A">The
Company will revise the disclosure in Item 2. Managements&rsquo; Discussion and Analysis of Financial Condition and Results of
Operations as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt; text-align: justify; color: #2A2A2A">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; color: #2A2A2A">&ldquo;The
Company reports its financial results in accordance with generally accepted accounting principles (&ldquo;GAAP&rdquo;) of the United
States of America (&ldquo;U.S. GAAP&rdquo;). In addition, the Company has included certain non-U.S. GAAP financial measures and
ratios, which it believes provide useful supplemental information to both management and readers of this report in measuring the
financial performance and financial condition of the Company. These measures do not have a standardized meaning prescribed by U.S.
GAAP and should not be construed as an alternative to other titled measures determined in accordance with U.S. GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; color: #2A2A2A">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; color: #2A2A2A">Two
such non-U.S. GAAP measures are &ldquo;organic revenue growth&rdquo; or &ldquo;organic revenue decline&rdquo; that refer to the
positive or negative results, respectively, of the following calculation: (i) the change in revenue during the relevant time period,
less (ii) for each business acquired in the current year, the incremental impact on revenue for the comparable period prior to
the Company&rsquo;s ownership of such acquired business, less revenue from each business acquired by the Company in the previous
year through the twelve month anniversary of the Company&rsquo;s ownership, plus (iii) for each business disposed of in the current
year, the incremental impact on revenue for the comparable period after the Company&rsquo;s disposition of such disposed business,
plus revenue from each business disposed of by the Company in the previous year through the twelve month anniversary of the Company&rsquo;s
disposition, less (iv) foreign exchange impacts. The Company believes that isolating the impact of acquisition activity and foreign
currency impacts is an important and informative component to understand the overall change in the Company&rsquo;s consolidated
revenue. The change in the consolidated revenue that remains after these adjustments illustrates the underlying financial performance
of the Company&rsquo;s businesses. Specifically, it represents the impact of the Company&rsquo;s management oversight, investments
and resources dedicated to supporting the businesses&rsquo; growth strategy and operations. In addition, it reflects the network
benefits of inclusion in the broader portfolio of firms that includes, but is not limited to, cross-selling and sharing of best
practices. This approach isolates changes in performance of the business that take place under the Company&rsquo;s stewardship,
whether favorable or unfavorable, and thereby reflects the potential benefits and risks associated with owning and managing a talent-driven
services business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; color: #2A2A2A">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: #2A2A2A"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; color: #2A2A2A">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; color: #2A2A2A">Accordingly,
during the first twelve months of ownership by the Company, the measure may credit the Company with growth from an acquired business
that is dependent on work performed prior to the acquisition date, and may include the impact of prior work in progress, existing
contracts and backlog of the acquired businesses. It is the presumption of the Company that positive developments that may have
taken place at an acquired business during the period preceding the acquisition will continue to result in value creation in the
post-acquisition period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; color: #2A2A2A">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; color: #2A2A2A">While
the Company believes that the methodology used in the calculation of organic revenue change is entirely consistent with our closest
U.S. competitors, the calculations may not be comparable to similarly titled measures presented by other publicly traded companies
in other industries. Additional information regarding the Company&rsquo;s acquisition activity as it relates to potential revenue
growth is provided in Item 2 &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&rdquo;
under &ldquo;Certain Factors Affecting our Business.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; color: #2A2A2A">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; color: #2A2A2A">In
addition, the Company will revise its disclosure under Item 2 &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition
and Results of Operations&rdquo; under &ldquo;Certain Factors Affecting our Business&rdquo; as follows: Acquisitions and Dispositions.&nbsp;The
Company&rsquo;s strategy includes acquiring ownership stakes in well-managed businesses with world class expertise and strong reputations
in the industry. Through the Strategic Resources Group, the Company provides post-acquisition support to Partner Firms in order
to help accelerate growth, including in areas such as business and client development (including cross-selling), corporate communications,
corporate development, talent recruitment and training, procurement, legal services, human resources, financial management and
reporting, and real estate utilization, among other areas. As most of the Company&rsquo;s acquisitions remain as stand-alone entities
post acquisition, integration is typically implemented promptly, and new Partner Firms can begin to tap into the full range of
MDC&rsquo;s resources immediately. Often the acquired businesses may begin to tap into certain MDC resources in the pre-acquisition
period, such as talent recruitment or real estate. The Company engaged in a number of acquisition and disposition transactions
during the 2009 to 2015 period, which affected revenues, expenses, operating income and net income. Additional information regarding
acquisitions is provided in Note 4 &ldquo;Acquisitions&rdquo; and information on dispositions is provided in Note 6 &ldquo;Discontinued
Operations&rdquo; in the Notes to the Unaudited Condensed Consolidated Financial Statements.</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"></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>2.</B></TD><TD><B>Please provide in MD&amp;A a reconciliation of revenue from acquisitions, provided in your explanation for the change in
revenues in the table at the bottom of page 20, to the total amount of revenue from acquired businesses included in revenue reported
on your consolidated statements of operations.</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-align: justify; text-indent: 0.25in; color: #2A2A2A">The
Company confirms that we will provide in the MD&amp;A a reconciliation of the acquisition revenue included in the organic revenue
growth (decline) table to the total amount of revenue from acquired businesses included in revenue reported on our consolidated
statements of operations.</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>14. Segment Information, page 75</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>3.</B></TD><TD><B>We note your response to comment 2. Upon completion, please provide us your detailed, comprehensive analysis in support
of your aggregation of each of your Partner Firm operating segments into reportable segment(s) in accordance with the criteria
set forth in ASC 280-10-50-11 through 19.</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-align: justify; text-indent: 0.25in">The Company completed
its analysis of reportable segments and concluded that the Company will aggregate 18 of its 32 Partner Firm operating segments
into one reportable segment. The Company will also present an &ldquo;all other&rdquo; segment along with a separate corporate group.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Company believes
that the aggregation of 18 of its 32 Partner firm operating segments is appropriate because these Partner firms provide a comprehensive
array of marketing and communications services for clients both domestically and globally. Furthermore, these Partner firms are
comprised of our integrated advertising and media specialist agencies as well as public relations firms. Partner Firms within this
segment include Allison + Partners, Anomaly, CPB, Doner, F&amp;B, Hunter PR, KBS, MDC Media Partners, and 72andSunny, among others.
These Partner firms share similar characteristics related to the nature of their services as well as the type of clients and the
methods used to deliver their services. In addition, the class of customer is also common among the Partner Firms in this reportable
segment. This results in the Partner Firms having similar economics of their business. Additionally, this aggregation approach
is deemed appropriate as opposed to providing detail information by Partner Firm, which the Company believes would not be as beneficial
to users of the financial statements. Furthermore, the Company believes that aggregating its reporting segments is consistent with
the objective and basic principles of ASC 280.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As previously communicated,
the Company first assessed the qualitative characteristics of our Partner Firm operating segments as set forth in ASC 280-10-50-11.
The Company considered the following factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Nature of the products and services.</I>
The Partner Firms in the reportable segment provide an array of marketing and communication services that overlap and are delivered
to the same customer role in the client organization (in some cases, the same customers). Often times, they are competing for the
same business at the same clients. </FONT></TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>The nature of the production processes.
</I>Labor costs is the most significant cost driver for the Partner Firms in the reportable segment. The employees for these Partner
Firms all possess similar skill sets. Additionally, the Partner Firms utilize similar tools in the production of their services.</FONT></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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>The type or class of customer for their
products and services.</I> The Partner Firms in the reportable segment have similar clients and work with a similar role in the
client&rsquo;s organization such as the Chief Marketing Officer, VP, Marketing, or similar roles.</FONT></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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>The methods used to distribute their
products or provide their services.</I> Although the Partner Firms deliver a distinctive range of solutions or services, the work
is ultimately delivered directly to their client. </FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Company then considered
both the average long-term gross margins expected for each Partner Firm operating segment as well as Adjusted EBITDA margin on
Net Revenue. Management measures the Partner Firm operating segment operating performance using the Net Revenue and Adjusted EBITDA
metrics. Adjusted EBITDA is a non-GAAP measure, calculated as operating profit (loss) plus depreciation and amortization, stock-based
compensation, acquisition deal costs, deferred acquisition adjustments, profit distributions from affiliates, and other items (other
items is not applicable at the Partner Firm operating segment level). Net Revenue is also a non-GAAP measure, calculated as GAAP
revenue less billable direct costs (third party client reimbursable costs). The Company recognizes that there may be short term
fluctuations in the individual annual operating margins that would cause differences in the gross margin on a quarterly or annual
basis. If the Company were to use the short-term margins, the Company would need to change segments quarterly/annually, which could
mislead investors. These fluctuations in the gross margin may be due to variety of business reasons such as expansion, client wins,
client losses, and resource changes. However, the Company believes the average long-term gross margin expectations are similar
among the aggregated Partner Firm operating segments.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As a result of the
analysis, the Company decided to aggregate 18 Partner Firm operating segments into one reportable segment. The reportable segment
represents more than 75% of the consolidated revenues for 2014, 2015, and the 2016 budget. The remaining Partner Firm operating
segments are combined and disclosed as an &ldquo;all other&rdquo; reportable segment, as none of these operating segments meet
the 10% tests as set forth in ASC 280-10-50-12.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We are providing the
Staff on a confidential and supplemental basis in a separate letter dated today additional detail concerning our Partner Firm operating
segments.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt; text-indent: 28.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.5in">Very truly yours,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.5in"><U>/s/ David Doft&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;&#9;</U><BR>
David Doft</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.5in">Chief Financial Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.5in">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">cc:</TD>
    <TD STYLE="width: 96%">Kathryn Jacobson, Senior Staff Accountant</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Robert S. Littlepage, Accounting Branch Chief</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>William Mastrianna, Attorney-Advisor</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities and Exchange Commission</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Scott Kauffman, Chairman and Chief Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Mitchell Gendel, General Counsel &amp; Corporate Secretary</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Christine LaPlaca, SVP Accounting and Financial Reporting</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Members of the Audit Committee of Board of Directors of MDC Partners Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Paul Curnin and Cheryl Scarboro (Simpson Thacher &amp; Bartlett LLP)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Robert Trinchetto, BDO USA, LLP</TD></TR>
</TABLE>


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