Is selling your agency the right move for you? What personal goals and circumstances might influence your decision? Your unique goals and circumstances should influence the decision to sell your agency or hand it over to a successor.
In this episode of The Agency Blueprint, Jonathan Baker joins me to discuss the misconceptions and realities surrounding the sale of an agency. Jonathan is the head of the M&A practice at Punctuation, a small advertising practice that works exclusively with small—to mid-size independent marketing service firms on various facets of business management and growth.
Don’t miss this episode to learn valuable advice from an expert for agency owners considering whether to sell or continue growing their firms!
Key Questions:
- [01:43] What and when is the actual goal and the idea behind selling an agency?
- [03:37] What does a typical deal structure look like in your experience for an agency owner in a small to mid-size agency?
- [06:15] What steps should you take to evaluate whether to sell or continue growing your agency?
- [09:09] What other options are there for agency owners beyond potentially selling?
- [13:37] In the two potential inevitabilities where someone is looking to sell, and someone isn't looking to sell, what would provide for the highest amount of money in the founder's pocket?
- What gross and net profit margins should agency owners target to ensure their firm's financial health and attractiveness to potential buyers?
What You’ll Discover:
- [01:51] Jonathan on the multiple triggers that cause selling an agency and why selling an agency should be a personalized goal.
- [03:47] The typical deal structures for small to mid-size agencies and the impact of different types of buyers on deal structures.
- [06:26] Why you should focus on your personal goals and the agency’s profitability when evaluating whether to sell or not.
- [09:24] The challenges of running a creative agency with an absentee owner and the importance of having a solid number two person.
- [11:45] Options for agency owners who want to retain flexibility while continuing to grow their agency.
- [14:03] Main ways to maximize profitability to appeal to buyers or run sales mechanisms and business development.
- [16:41] The importance of targeting the right type of buyer based on the strengths and weaknesses of your agency.
- [19:03] Gross and net profit benchmarks for agencies and the importance of maintaining profitability while ensuring sustainable growth.
- [20:23] How to take control of your destiny and plan your future strategically as an agency owner at a crossroads.
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