Ever wonder why one agency sells for 2× EBITDA while another gets 8×?
Here’s why: buyers don’t just look at your revenue. They look at the quality of that revenue.
Factors that influence valuation include:
- Profitability – healthy margins matter more than top-line revenue.
- Retention – do clients stay year after year, or churn quickly?
- Growth – is your revenue trending upward consistently?
- Niche – are you specialized in a valuable segment, or a generalist?
- Team & Systems – can the business run without you?
I’ve seen two agencies, both doing $5M in revenue, sell for wildly different prices. One had sticky clients, strong margins, and a leadership team. The other had flat growth, founder dependency, and shaky books. The result? A 3× multiple vs. a 7× multiple.
Valuation is math, but it’s also storytelling. The story you can tell about your revenue, your clients, and your future potential matters just as much as the spreadsheets.
👉 Which of these factors do you think your agency is strongest in?
Contact us if you’re and agency owner and have considered selling or joining something bigger.