What Is A Fractional CFO?
Having organized, clean financial documents is the key to understanding the value of your business and ensuring a smooth transition when you’re ready to begin the acquisition process – but when you’re a busy entrepreneur, things can get messy with your attention being pulled in a hundred different directions. When you’re seriously considering a sale within the next 9-24 months, it’s time to bring in someone to help you prepare for this journey – it’s time to engage a Fractional CFO.
Who Is A Fractional CFO?
A Fractional CFO, also known as an outsourced CFO, is a financial professional that provides management and advisory services on a part-time or project basis. These experts are typically employed by small to medium-sized businesses who may not have the resources for a permanent CFO (Chief Financial Officer), but still require financial expertise and oversight.
Understanding The Differences Between Key Financial Roles
While all Fractional CFOs, Controllers, and CPAs all play critical roles in business financials – they have a number of key differences in their scopes of work:
- Fractional CFO: A Fractional CFO is a strategic financial leader who provides high-level guidance and oversight to businesses. They focus on the broader financial aspects, including financial planning, strategic decision-making, and long-term financial sustainability. Fractional CFOs focus on actions to drive business growth
- Controller: A Controller is responsible for the day-to-day financial operations of a company. They often facilitate the management of internal financial systems and mid-level financial teams. Unlike Fractional CFO, they typically do not provide advisory to executives and work in a more administrative capacity. Controllers focus on communications to ensure streamlined operations.
- CPA: A CPA (Certified Public Accountant) is a financial professional who has met specific educational and examination requirements to achieve this elevated professional designation. CPAs have a narrow, specialty focus in terms of business financial operations handling operations only related to accounting and taxation. CPAs focus on compliance to handle regulation financial obligations.
While a Controller and/or CPA can help keep your books, billings, and taxes in order from a technical perspective, a Fractional CFO provides strategic guidance and focuses on long-term business planning to drive overall success.
Barney’s Unique Approach To The M&A Process For Digital Agencies
Every Digital Agency Is Incredibly Unique – That’s Why Our Approach To The M&A Process Is Too.
The M&A process is too frequently approached from a one-size-fits-most perspective. Such a narrow approach creates unnecessary friction, delays, and related problems, especially when the M&A sale process involves a digital agency.
Selling a digital agency isn’t about selling tangible assets. It’s about selling relationships. This makes it go far beyond a mere transaction. Sellers aren’t just interested in getting the most money possible from the exchange. Certainly, profits are essential. But they’re hardly the only worries on digital agency owners’ minds as they face the M&A process.
For instance, plenty of owners lose sleep over finding a buyer who will manage the company wisely, treat existing employees well, and maintain the brand legacy and company culture. And owners who intend to remain involved in the business in a short-term or long-term capacity tend to fret about fitting into a new ecosystem and culture.
These are just some of the dilemmas that can present stumbling blocks to getting digital agency sales through each of the M&A phases. They’re also the reason that Barney’s team members make a point to understand and empathize with sellers’ unique goals and worries deeply. After all, strategic, thoughtful, and deliberate matchmaking is critical when it comes to mergers and acquisitions transition events.
In other words, what digital agency M&A processes need are acquisition team members who see themselves in a concierge capacity.
The Benefits of Concierge Service Throughout the Digital Agency M&A Process
In the world of hospitality and tourism, concierges serve as expert guides. They learn to listen carefully and make recommendations based on the person or group they’re helping. The same general principle holds true of concierge service during mergers and acquisitions.
We ask probing questions upfront when we meet a potential digital agency seller or buyer. It’s our way of understanding the authentic values and objectives driving each party. From what we hear, we can move forward through the M&A phases with confidence. Make no mistake: This is a disruptive approach to the traditional M&A process. Yet it’s proven effective time and again.
To date, we’ve moved more than 250 deals across the finish line swiftly but surely. The reason? We view ourselves through the lens of wearing concierge hats and treating each M&A experience as distinctive. Yes, all M&A advisors share common characteristics. However, they shouldn’t be molded with the same cookie cutter.
So what does Barney do that’s so different from a typical M&A business brokerage?
1. We strive to educate seller and buyer clients.
Like all concierges, we know our “city,” which happens to be the digital agency mergers and acquisitions space. As a result, we strive to pass along our expert knowledge to all stakeholders.
Take our M&A process timeline, for example. We’ve constructed a framework that’s flexible enough to accommodate the nuances of each M&A and defined enough to produce repeatable reliable results. When we walk digital agency sellers and buyers through our M&A sale process, they gain a greater vision of what to expect. This helps reduce stress and avoid misunderstandings.
2. We are always here as a resource to founders.
When you go to a five-star hotel, you can expect to connect with a concierge practically round-the-clock. The same holds for Barney’s team. We’re an available resource 24/7 to answer questions in a relatable, compassionate, friendly way. We don’t just send sellers and buyers to a website with canned answers. We break down their concerns bit by bit and answer them in a language they understand.
Being able to speak the digital agency language is a huge boost. More often than not, sellers and also buyers are fresh and new to digital agency M&As. Talking with them using their ecosystem’s terminology makes a positive impact.
3. Kindness is integrated into everything we do.
As mentioned before, selling and buying a digital agency can evoke a rollercoaster of emotions. We anticipate this, which is why we put a great deal of emphasis on being kind through our actions and words. Kindness is perhaps one of our greatest differentiators, as well as being one that we’re proud to provide.
We’ve found that when you’re sincerely empathetic, you become better problem-solvers, too. Since the start of Barney, we’ve embarked on a practice of continuous improvement. It’s helped us become the best in our field, just like the founders of the digital agencies we represent are the best in their industries.
All business relationships are precious resources, including the relationships formed during mergers and acquisitions transitions. No matter why you’re considering M&A for your digital agency, make sure you’re getting the concierge treatment from your closest partners. It’s what you, your team, and your firm deserve.
5 M&A Transaction Red Flags
All solid M&A transactions share one commonality: They grew from a foundation built on trust and transparency. This isn’t just a talking point. It’s something that has proven itself time and again.
From a seller’s standpoint, trust and transparency are critical to successful M&A transaction experiences because they reduce selling stress. Letting go of a business can be emotionally difficult. Trusting the buyer as well as the M&A advisor makes the process easier to absorb and accept.
Of course, buyers value transparency and trust in business, too. They feel more comfortable knowing that all the cards have been laid on the table. That way, they can evaluate those cards and purchase a company with confidence.
Here at Barney, we try to make good M&A matches that put all parties at ease. Accordingly, we vet buyer stakeholders to promote healthier buyer-seller relationships. To be honest, a lot of what gets deals across the finish line isn’t capital or timing. It’s the trust and honesty that comes from forming a relationship during initial meetings and the due diligence period as well as forthrightness in all matters to reduce the chance of surprises.
Our framework of transparency works well because we understand how to bypass common pitfalls. Yet not everyone who wants to sell or acquire a company knows the red flags when buying or selling a business. If your future includes entering a legal business contract from either standpoint, watch for the following indicators. They’re usually markers that something’s amiss.
Red Flag #1: The buyer offers too much cash at the close.
We’ve all heard the adage that if it seems too good to be true, it probably is. The same holds in the M&A world. Unsophisticated buyers who don’t understand structuring acquisitions will sometimes throw out lofty numbers to get attention.
The problem comes when the letter of intent is signed. Often, they either re-trade the deal or realize they can’t get the funding they anticipated receiving.
Red Flag #2: The buyer doesn’t offer enough cash at the close.
Welcome to the other side of Red Flag #1. In any M&A transaction — especially one involving a digital agency — the cash offered at close is king. If a buyer suggests paying less than 30% at close, you probably want to go a different direction.
Here’s the issue: Having contingent consideration or upside in an M&A transaction is important. However, it’s just as important that the riskiness of the contingent consideration is kept at a comfortable level for the seller. Ultimately, it’s best to push for every dollar you can get upfront.
Red Flag #3: The seller appears to be unorganized.
No leadership team. No business development team. Scattered financials. These all point to the probability that the seller isn’t ready.
Investors want to buy businesses built to scale. They want to see streamlined workflows and consistent processes in place. Above all else, they’re eager to put their capital into a well-oiled machine, not one that might break down at a moment’s notice.
Red Flag #4: A stakeholder’s intuition says, “This is wrong.”
It can happen whether you’re a seller or buyer: Your Spidey senses start tingling. Something doesn’t feel right. Even if you’re in the middle of a deal, listen to your gut. Maybe you’re just lacking confidence or feeling overwhelmed, which are emotional responses that can pass. But perhaps you’re noticing subtle warning signs.
Walking away from the process doesn’t make you a bad businessperson. In fact, it could save you or your company from a major mistake. Certainly, you’ll want to talk with your M&A advisor about your worries in private. Nevertheless, don’t assume that you must sign any contract if you’re not convinced it’s the right direction.
Red Flag #5: Buyer or seller issues start bubbling to the surface.
Deals informed by transparency are more likely to succeed. However, transparency doesn’t mean admitting to something when you’ve been “caught.” It means doing everything possible to lead with transparency.
For instance, almost all companies undergoing M&A transactions create and share virtual data rooms. All pertinent stakeholders can be given access to the virtual data room to foster good communication. Having a centralized, shared platform encourages dialogue and reduces the friction that comes from having too many “I forgot to mention this …” moments.
Here's Why You Should Consider Phantom Equity When Selling Your Agency
The Very Real Promise of Phantom Equity
The terminology may frighten some away. But phantom equity, especially when it comes to selling your agency, has the potential to breathe new life into your agency. The upsides are well worth taking the time to ensure that phantom equity is anything but elusive to you. Make phantom equity work to your advantage by using it as the adhesive that binds essential human capital to your agency long-term, especially post-sale, promising profit shares in return.
What Is Phantom Equity and Why Does It Matter When Selling Your Agency?
Phantom equity is both equity and not equity. It offers the benefits of company stock without actually issuing any. Known also as “phantom stock” or “virtual shares”, they offer deferred compensation in line with company performance much like actual stock would. And much like actual stock, this equity will vest over time and according to an agreed schedule. However, unlike actual stock, phantom equity never offers the opportunity to exercise a voting right; they are financial-only. This means holders of phantom equity don’t sit on the cap table, carry no liability and, as such, pose practically no added legal requirements or costs to get set up as phantom stockholders.
Should I Take Advantage of Phantom Equity When Selling My Agency?
If you are considering selling your agency and you’re an owner who is looking to stay on long-term, phantom equity makes perfect sense. Phantom equity ensures that a founder – or any other essential team member for that matter – stays on, stays committed and stays a part of the continued growth story even after a sale and post-sale transition period have been completed. Offering phantom stock in the business post-transaction offers an objective guarantee, aligning buyer and seller incentives for continued success.
After all, human capital is the key component to the business that was just acquired. Keeping the engine room of an agency firing on all cylinders means binding that human capital to the agency’s continuing journey down the growth path. Especially when the agency is a smaller business – approximately 15 people or fewer – the value of each team member tends to be magnified. Binding essential team members to the long-run success can be a sure-fire win-win.
When Does it Make Sense to Avoid Phantom Equity?
If you are looking at selling your agency but do not plan to stick around for the long haul once your agency has been sold, then phantom equity may not be for you. Even a full year of commitment post-sale is not in alignment with the purpose and likely vesting schedule of phantom equity. Generally speaking, it takes a minimum of a three-year commitment for phantom equity to really begin to pay off.
In addition, if a buyer only wants to incentivize team members that stick around for an agreed minimum period that extends beyond the start of the vesting schedule, they may want to consider a cash bonus plan instead. The reason here is that these are generally forfeited altogether when an employee leaves whereas the vested phantom equity could mean having to pay out somebody who left sooner than a buyer might have liked.
The Bottom Line
The initial post-sale transition period of, on average, 90 days is tied into every deal. What happens beyond that is down to the interests and alignment of seller and buyer. If the interest is there for a seller to stay on board long-term and keep reaping the benefits of an agency’s ongoing growth story, the direct path to participating in the profits to come, is phantom equity.
Flexibility Is The Key To Sell Your Digital Agency
Selling Your Digital Agency? Why an Owner’s Flexibility is Key to Sealing a Deal
When you are looking to sell your digital agency, negotiating the sale will take time. That time will require more than just patiently waiting on the sidelines. It will require a back and forth that will see most owners giving way at some point, be it with regards to the selling price, payout terms, or the time it takes to complete a deal. Staying focused on the goal of completing the deal – rather than staying focused on a timeline or a price tag – will help ensure a successful transaction.
Your Transaction Doesn’t Live in a Silo
As promising as the performance metrics on the books may look, the growth trajectory of your agency is taking place in a complex environment comprised of many players. There will always be a market reality outside of your agency. And a buyer scanning the market will be well aware of this reality. It’s important to show you understand this in practical terms by adjusting deal terms and pricing in line with what the market suggests is feasible.
Your Agency Has More Than One Type of Buyer
While you may have your mindset on a specific type of buyer, market shifts mean that not only are price and deal terms a dynamic part of the equation, but the buyer type continues to evolve as well. Larger agencies looking to acquire your client portfolio may have been a classic buyer type in the past, but they are far from the only one nowadays.
Solo-preneurs, in particular, have reshuffled the deck. These high-net-worth experts are sitting at a corporate job or a large agency and are looking to apply their know-how and their network to scaling something they don’t have to build from the ground up. Keep an open mind as to who will be steering the ship following your departure and you will be sure to up your shot at getting the deal done.
Take It One Step at a Time To Sell Your Digital Agency
Flexibility won’t go far if you don’t have a healthy dose of patience when you go to sell your digital agency. Keep a leveled head as negotiations inch forward and continue to be calm post-transaction as well. Staying flexible with respect to how long you will be needed after the date of a transaction will help ensure smooth sailings beyond the moment of signing. Putting in the bare minimum of just 30 days to cash out fast is never recommended. A 90-day minimum that is ideally extended into the range of 6-12 months is optimal to make sure all parties’ best interests have been served.
One Step at a Time
An agency sale is not complete on the occasion of signing the deal. It’s important to understand what happens in the run-up and the post-sale and what sort of attitude can help all involved feel like they’ve hit a home run. Just like a solid workout demands a warm-up and a cool-down, no transaction is complete without buyer scoping, due diligence and transition period in the stages before and after a sale. And just like that workout, your sale will fall into place one step at a time. Staying flexible along the way means that you will be prepared for what the process will inevitably throw at you – and ensure sure that you’ll be there to answer the door when opportunity knocks. Ready To Sell?
Why Honesty Is Essential When Selling An Agency
Are you selling an agency? There is one thing above all else that you can do as an agency owner to help make the sale of your agency, and the ensuing transition period, as smooth as Sunday morning jazz: Be Honest. A serious buyer will always do their homework – and a minimum 45-day due diligence period is guaranteed to reveal anything they weren’t able to uncover upfront. Better still, find out what is of particular importance to a buyer so you can be transparent about those key issues in particular. Not entirely sure what those are? We have a pretty good idea.
Selling An Agency Rule #1: No Surprises
Align your communication with your true intentions once you are no longer at the helm. If your aim is to keep the transition short, don’t communicate that you will be available for the long haul after the sale to try and get the deal done. Adapting the transition period to how long an agency owner will be around is crucial to make sure the necessary ground is covered. If you are unsure about the ins and outs of the transition period, you can read our piece on that here.
The same goes for what you plan to do once you have walked away. If you plan to start a new agency, you will need to put a workable non-compete agreement in place first. It’s not unlikely that a new agency could be your next move, after all. You have the founder’s DNA inside you and have lived and breathed marketing in some form or other for years. Of course, it’s only tempting for an alternative next move to be early retirement and more time spent with your growing guitar collection, but if what you’re going to do is start a new agency, start on the right foot.
A further point to be clear on is the role of employees and where the client relationships sit. If owners are essential to maintaining these, this needs to be addressed. Buyers will typically interview senior employees to get the low-down anyway, so all the more reason to be upfront about relevant roles and relationships. An agency’s employees will be the ones staying on to deal with anything that was not handed over cleanly and openly. Just one more reason to keep all the stakeholders – and not just the one shareholder – top of mind when communicating your sale.
Managing Expectations
Like with any other transaction and business relationship, success lies in the alignment of the objective value of an asset and the perceived value. In other words, managing expectations is the key to making an agency sale a win-win. There are enough buyers for every type of agency so making the right match based on the facts of the business will be the key to making your sale a success for all involved.
Buying An Agency: Which Type Is Right for You?
So you’re buying an agency … congratulations! Marketing agencies (especially digital agencies) have never been in greater demand, and your chances of success are high – especially if you acquire an agency with a strong reputation and healthy customer base.
If you have never owned a business before, or are new to the agency world, you might be wondering which type of agency to target. The sector is dynamic and constantly changing (perhaps this is what attracted you to it in the first place).
This article will provide you with an overview of the types of digital agencies you have to choose from. Just as importantly, it will recommend some actionable steps for figuring out which of these categories is the ideal fit for you – whether you’re purchasing a business for the first time, or already own a successful business and want to add another to your portfolio.
Zooming In: Types of Digital Agencies by Service
There are many types of agencies, from service- oriented and vertically integrated to pure marketing SaaS and many more.
Before we walk you through some practical tips for deciding which business to buy, let’s examine three categories of digital agency and the potential upsides of purchasing them.
The industry is exploding with ideas and growing exponentially, so we won’t attempt a comprehensive categorization. But the following are well established, distinct subtypes with high product-market fit and thriving demand.
Sounds like a good place to start, right?
SEO Agency
The SEO (search engine optimization) agency is one of the largest digital marketing agency subset. This type of agency has defied the odds to thrive in a changing marketplace.
The fact that we probably don’t need to tell you what an SEO agency does is solid proof of how firmly the concept of SEO has taken root in the public consciousness.
Buying an SEO agency has its advantages: the process of constantly making and testing changes to the design of clients’ websites means recurring business in addition to high average monthly income.
Another plus for those with existing companies: owning a business whose business is helping other businesses’ visibility has the opposite effect of making your company invisible.
Social Media Marketing Agency
Can you say “viral?” Social media marketing firms are a bit like the SEO agencies attractive younger siblings – though they now have target audiences in every age demographic.
As you can guess, these agencies market their clients – and often themselves – on social media networks such as Facebook, Instagram. TikTok, Twitter, LinkedIn, Snapchat, and Reddit. Most of them also use blogging and offer some degree of influencer marketing.
Growth is baked into the business model of this type of agency. If you buy one that is good at upselling new platforms to its clients (see TikTok above), you might even be able to scale your services.
As with SEO agencies, social media marketing agencies are useful investments for buyers who already own a business and want to get more visibility for it.
Lastly, as the name indicates, these agencies are social animals. Establishing and nurturing strong relationships with their clients and their clients’ clients is what they do best. This makes for excellent client retention, which in turn means healthy recurring monthly revenue.
PPC/Inbound Agency
This last type of digital marketing agency we’ll cover is a different kind of beast, but a very friendly one. The name of the game for PPC/inbound agencies is inbound marketing focused on generating ROI (return on investment). Once considered avant garde, in 2020 these agencies are growing like bananas from Chiquita.
The companies they serve demand results and these agencies specialize in it. The most successful and desirable ones to purchase have built incredible efficiencies through API’s of great software or even built their own SaaS to close the gap on demand and results.
Knowledge of current clients, client retention rate, and retainer revenue vs. project revenue are uber important when comparing agencies for sale of this type. Do they churn and burn or nail it nearly every time?
Inbound agencies are terrific investments for both beginning and experienced buyers. These businesses tend to be scalable, and as such can provide revenue and growth for years to come.
Buying an Agency for First-Time Buyers
Are you a first-time buyer? Every buyer is different and brings his or her own passions, skills, experience, location, and financial standing to the negotiating table.
Your first step in answering this question should therefore be to consider all of these unique factors and make sure that a digital agency is a good match for them. Hint: the more flexible and creative you are, the better!
Step two is to drill down to find the right type of digital agency. Try browsing agency sales listings and filtering for agency type, price, revenue, net income, and age. This will give you a feel for the market and provide a springboard for a conversation with a broker or M&A Advisor.
Agency Purchase for Seasoned Business Owners
If you already own a business, you probably already know what kinds of businesses are compatible with you. But what about the various types of agencies? This is where it gets more complicated.
To start with, you should determine what type of agency would combine well with your existing business. Think in terms of synergies. Which agencies will enable you to up-sell services from your current company, and vice versa?
If you have already narrowed down your search to specific companies, compare each ones’ employees and ask yourself: which complements or augments the capabilities and personalities of those who are already on my payroll?
Browse our businesses for sale to get ideas for how to grow your business through buying another company. It could be a geographical expansion or an expansion of products or services offered. Weighing all of these factors will guide you towards the perfect business purchase.
If your budget allows, consider off-market deal sourcing from a credible advisor.
That’s a Wrap!
To sum up: digital marketing agencies come in numerous shapes and sizes. The tips in this article will help you identify which one is the perfect purchase for your needs as a buyer.
When it’s time to take the next step, connect with our buy-side sister company – Oliver. They’re your team’s dedicated buy-side advisors, sourcing direct-to-founder acquisition opportunities customized to your needs.
Shifting Your Mindset For A Success Agency Acquisition
You’re not the judgmental type. You’re out to get the most value from an agency acquisition and you’ll give the highest bidder the benefit of the doubt. But this type of buyer prospect rubs you the wrong way.
Tips To Sell A PR Agency For Top Dollars
Sell A PR Agency For The Best Price
You founded your PR agency, took the time to grow it, and now are reaping its benefits, but the time will eventually come for you to sell it. Maybe you’re at the top and are ready to strike while the iron is hot, or maybe you’re ready to join forces with a larger agency. Regardless, there are a few things you should do while you’re embarking upon the exit process. These tips for selling a PR agency will help you get top dollar for your firm.
1 – Streamline, Organize & Document Everything
Before selling a PR agency, take some time to streamline your systems to reduce waste, organize the company’s technology assets (like a CRM) and optimize your organizational and personnel structure. Think about your firm as if you were out of the picture…would it survive? If not, what can you do to make sure the walls don’t crumble if you’re gone? If you don’t already have thorough documentation of the ins and outs of your firm’s processes for key areas of the business, this is the right time to get those in place. Sophisticated buyers willing to pay top dollar for your PR firm will want to see a well-oiled machine that has proven systems and processes implemented company-wide.
2 – Make Your Biz Dev Process A Well-Oiled Machine
Business development is a really big deal to buyers! Given that most PR firms don’t have a lot (or any) collateral assets, a lot of the “secret sauce” lies in the way the firm gets new business. Do whatever you can to systemize this process, ideally in a way that doesn’t center around you. Even if you’re looking for a strategic buyer that will keep you on board for several years post transaction, buyer still want to see a clear business development process that operates without the founder leading the charge.
3 – Get Better Contracts
PR firms with long-standing, foil proof contracts sell for a significantly higher multiple than those that are project based. Often times, PR firms or agencies specializing in corporate communications have retainers in place with their clients (good!) but they have a simple 30-day out clause. Buyers like to see strong contracts that can be transferred over to the buying entity at close.
4 – Get Your Financials In Order
You need to have an accurate picture of your financials in order to sell your PR firm for the best price. Seems obvious right? In order to convince a buyer your firm is the right purchase for them, you need to know exactly what is coming in and out each month. Now is the time to take your mother-in-law off payroll and remove your business credit card from your Amazon account. For larger agencies, try to put non-revenue producing line-items (like labor for R&D) as a standalone line item on your P&L so buyers can easily add these back into their financial calculations.
5 – Find A Quality M&A Advisor To Sell Your PR Firm
Many buyers of PR firms are going to be large marketing agencies looking to acquire a strategic bolt-on that specializes in corporate communications. These buyers will understand the cross-sell opportunities available to them on day 1 and will appreciate the holistic approach to client services that PR firms generally undertake. Using an advisor who understands this dynamic is crucial. This could be the difference between selling your PR Firm for the best price and not. A quality advisor who understands your niche and industry (this is key) will be able to give you an accurate valuation, produce professionally designed marketing materials and most importantly, tap into their network of ready-to-go buyers. A great advisor will be worth their weight in gold at the end of this process and will absolutely help you sell your digital agency for the best price. If you need to connect with us, you can do that here.
6 – Figure Out What Your PR Firm Is Worth
Now that you have a clear understanding of where your company stands financially, it’s time to give it a valuation. A PR firm is only worth what the market is willing to pay for it, but there are some tried and true factors that go into a successful valuation. The firm’s revenue & profits, operational structure, years in business, supporting technology, growth opportunities and the current buyer pool are just a few of the factors that go into determining a valuation of a business. This is where it gets a bit tricky, and a good advisor is going to have unparalleled knowledge to price your PR firm just right to sell. (We can help, schedule an intro call here).
7 – Build Relationships With Seasoned Buyers (Or Hire Someone Who Already Has Them)
Unsurprising news flash – existing relationships with a pool of seasoned buyers is still the absolute best way to sell your PR firm for the best price.
If you’re using a business broker or M&A advisor, make sure to ask about their existing relationships with buyers in the marketing and agency space. They should have solid, and long-standing relationships with seasoned entrepreneurs and strategic buyers who are always on the lookout for their next opportunity. At Barney, over 80% of the Public Relations firms we sell get sold to an existing buyer in our database. We can’t stress this enough – these relationships are crucial!
In Conclusion…
If you decide to start and eventually sell an agency, there are things you can (and should) do to help prepare your agency for an exit. We can act as a resource along the way, don’t hesitate to reach out with questions! Connect with us when you’re ready!