A Florida marketing company sold for $2.8M at 4.2x EBITDA, above its asking price. Marketing agencies are people businesses, so buyers pay most for recurring client revenue and a team that runs the work without the founder.
Sold above asking
Retainers and multi-month contracts are worth more to a buyer than one-off projects because they carry into the next year.
Long client relationships spread across many accounts reduce the risk that revenue walks out after closing.
If clients buy from the founder, buyers discount the price or push for earnouts. Account managers who own client relationships raise the multiple.
Gross margin by service line and how work is delivered (in house, contractors, offshore) show how scalable the agency is.
We start with a valuation grounded in closed deals, then recast the financials and build the confidential information memorandum buyers will review.
The business is presented anonymously to qualified buyers from our network of 7,950+ and on major marketplaces. Buyers sign an NDA before they learn the name.
We run several buyers through the process at the same time, so letters of intent arrive close together and price is set by competition.
We manage diligence requests, keep the deal on schedule and work with the owner's attorney and CPA through closing.
Marketing agencies are usually valued on a multiple of EBITDA. The three marketing businesses on our record sold at 4x to 4.2x EBITDA, including this $2.8M Florida company, which sold above asking.
Larger agencies adding services or markets, private equity backed agency roll-ups, and business services companies that want marketing capability in house.
Most agency buyers ask the founder to stay for a transition period so client relationships transfer smoothly. The less the agency depends on the founder before the sale, the shorter that period and the smaller any earnout.
Most of our transactions close in 6 to 9 months, and most clients receive a letter of intent within 60 days.
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