Agencies sell for a multiple of their profit. The multiple is where most of the value is won or lost, and it depends on how the business runs, not only on how much it makes. Here is what buyers look at, and how to get a free valuation from ZKW Group.
Most buyers start from the agency's yearly profit. For an owner-run agency that is usually seller's discretionary earnings (SDE): profit with the owner's salary and personal costs added back. For a larger agency with a management team it is usually EBITDA.
That profit is multiplied by a number that reflects how risky the business is to own and how easily it can run without the founder. Two agencies with the same profit can sell for very different prices because of that multiple.
Most of these can be fixed before a sale. ZKW Group's own approach after buying an agency is to remove founder dependency in 60 to 90 days, and the same steps raise what a buyer will pay.
Every agency is different, so we do not publish a price list. Book a call, tell us about the agency, and we will give you a free valuation: what it is likely worth today, and what would raise it.
If you are ready to sell, see how selling with ZKW Group works.
Mostly on profit. Buyers look at what the agency earns after costs, then apply a multiple. Revenue matters for size and stability, but two agencies with the same revenue can be worth very different amounts.
Seller's discretionary earnings: the agency's profit with the owner's salary and personal costs added back. It shows what the business earns for one full-time owner, and is the usual starting point for owner-run agencies.
Because they are less risky to own. Recurring retainers, many clients instead of a few, a team that delivers without the owner, written processes and clean books all make a buyer willing to pay more.
Move clients onto retainers, reduce reliance on your largest clients, hand client relationships to account managers, write down how the work gets done, and keep clean monthly financials.
Book a call with ZKW Group. The valuation is free, and you get a clear view of what your agency is likely worth and what would raise its value.
Find out what your agency is worth and what would raise its value.
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