Earn out before burn out.
Despite what most people believe, agencies are notoriously difficult to sell.
For those deals that are successful, the sales process itself can take 12 months to plan and negotiate.
All deals are different, but most agency trade acquisitions include only 50% of the consideration at the point of acquisition. The remaining 50% is normally paid over an earnout period (commonly 3 years).
In short, even if you start today, it may take you some time to extract yourself from your agency.
I’m not here to encourage you to do so, but if you are thinking of selling, you may need to explore your options sooner rather than later.
At Cactus we have a specialist M&A team. DM me if you would like me to introduce you to one of my colleagues who are experts in this space. They can guide you in the right direction and explore what deals might be possible for your particular circumstances.
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