So you might be thinking, how much do agencies sell for? Understanding uae telegram data why a potential acquirer wants to acquire an agency will help you understand how they value it. Jason Swenk suggests there are three main reasons a buyer wants to acquire an agency:
-
- Rapid Expansion: if you have a solid reputation for a specific service or skill set, a buyer might be interested in acquiring your agency. The thing is, your processes and systems also have to be totally solid. An acquirer who wants to grow rapidly is only interested in an agency that is running efficiently. They aren’t interested in growing organically (or they’d just do it themselves).
Finding Potential Buyers
If you’re in the enviable position of having buyers knocking on your according to the results of studies door pro-actively seeking a sale, you already have the upper hand. However, most founders will likely need to hunt for potential buyers. When selling BuildThis, Hans listed his agency on BizBuySell – a marketplace that connects business buyers and sellers. Another popular marketplace for listing agencies for sale is Businesses ForSale. Within 24 hours of listing, Hans received inquiries from several dozen legitimate buyers. “It’s also a great way to get insight into how to value your business by looking at similar companies for sale”.For Hans, aside from ensuring his staff would be fully retained, he was looking for buyers who were team-oriented (and not just solely interested in the client list).
Negotiating the Deal
The Due Diligence (DD) process for Hans was extensive with activities falling into three main groups: phone number list from mobile lead
- Reviewing financials: full access to the agency’s Quickbooks account to verify all numbers and results
- Meetings with managers: to verify leadership skills and how they would take the company to the next level
- Group and individual meetings with staff: to understand capabilities and depth of experience across the team
The buyer (Webspec Design) also reviewed current and previous client work and any outstanding legal issues. The full process took between 60-90 days to complete with one round of back and forth on valuation.
- Rapid Expansion: if you have a solid reputation for a specific service or skill set, a buyer might be interested in acquiring your agency. The thing is, your processes and systems also have to be totally solid. An acquirer who wants to grow rapidly is only interested in an agency that is running efficiently. They aren’t interested in growing organically (or they’d just do it themselves).