What Are You Doing to Secure Higher Market Value for Your Agency?

There's enormous interest in mergers and acquisitions in the digital agency space at this moment. Does your agency have a strategy in place for enhancing its market value?

If you're considering selling your agency or attracting investors, it's critical to know what drives agency valuations. Even if a sale isn't in your immediate plans, understanding these factors can guide strategic decisions that strengthen your business.

Here are common questions agency leaders ask when exploring M&A:

• What are the key factors that influence my agency's valuation?
• What documentation or financial data will I need to get an initial estimate?
• When is the right time to sell my agency?

When asked what advice he would give to an agency owner if they want they want to build their agency with a mind of selling it in the end, Michael Seidler, CEO of Madison Alley Global Ventures says: "Secure EBITDA margins close to or above 20% and establish a diverse portfolio of long-term clients. Offer modern capabilities such as data-driven marketing, commerce, analytics, AR/VR, applying AI/ML, etc. Find a path to over $3-5 million EBITDA and ensure blue chip clients."

There's enormous interest in mergers and acquisitions in the digital agency space at this moment. Does your agency have a strategy in place for enhancing its market value?

If you're interested in taking a first step into the realm of agency M&A, fill out the Agency Valuation Calculator. Once you get an estimated valuation, let us know your thoughts and feedback.