Herringbone Digital Blog

In the previous post, we talked about some of the items that can lead to higher (or lower) multiples. In this post, I wanted to dive a little deeper into 3 that really matter. . I call it the Triangle of Value. Why does this triangle matter? Because together, these three create predictable cashflow. And […]

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: I’ve seen two agencies, both doing $5M in revenue, sell for wildly different prices. One had sticky clients, strong margins, […]

Not all buyers are created equal — and knowing who’s across the table matters as much as the price they’re offering. Here are the big categories: Each has different goals: The same agency could get very different offers depending on the buyer type. Which means you need to think beyond “the multiple” and ask: What […]

Selling your agency isn’t one conversation — it’s a journey. A typical deal flows like this: #️⃣ Initial Outreach – a buyer expresses interest (or you decide to explore options). #️⃣ Intro Conversations – light discussions about fit, strategy, and goals. #️⃣ Letter of Intent (LOI) – a non-binding document that outlines headline terms. #️⃣ […]

Most agency owners hear “M&A” and think: 👉 Complicated Wall Street stuff 👉 Billion-dollar deals splashed in the headlines 👉 Not relevant to a 20-person shop in Austin or Denver Here’s the reality: M&A simply means a transfer of ownership. That could be one founder buying out another, a strategic buyer rolling you into their […]

How did private equity find me?” That’s one of the most common questions I get from agency owners. Here’s the process I use (and I suspect most other buyers aren’t too different): Step 1: Define the ideal candidate Here, we set the criteria for agencies that we want to acquire – industry focus, products offered, […]

The “Triangle of Value” — The 3 Metrics Buyers Care About Most When I talk to agency owners about M&A, I share a simple framework I call The Triangle of Value. It’s built on 3 metrics every serious buyer obsesses over:1️⃣ Retention – High retention = recurring, predictable cashflow.2️⃣ Growth – More growth = more […]

One of the most exciting paths for agency owners after an exit? 👉 Staying on to help scale what you’ve built. More and more buyers today don’t want to just buy your business and show you the door. They want to partner with you—to add fuel to what you’ve started. Here’s what that can look […]

If you are thinking about selling your agency, you need to understand the role played by a Quality of Earnings report. First, what is it? Typically a QoE is a report that is commissioned by the buyer. The report is prepared by an outside accounting firm, oftentimes ones that specialize in preparing these reports. The […]

This is the final post in my series on the options available to agency owners. Today’s topic: Selling your agency. Most agency owners I speak with love what they do. So when the topic of selling comes up, the first thing they focus on is what they might lose:– Flexibility and autonomy– Steady income– Working […]