What would you want to see if you were buying your agency?
No.3 – You’d want to see SCALE
OK so some small agencies are acquired for their specialist skills, but generally bigger is better. There is a cost in doing a deal and integrating a business. Buyers don’t want to incur big costs for small deals. The larger the agency, the more attractive it is to serious buyers
If you were buying a STANDOUT agency you’d want to see:
– £5M + revenue
– 50 + people
– £1.5M + profit
I’m not saying deals aren’t done beneath these thresholds, far from it. But if you want that life changing capital event these are the figures you should have in your sights.
STANDOUT agency owners don’t think about selling their agency, they think about buying it. Stand back and ask yourself “would I buy my agency”?
If you still have some work to do in this area, at least now you know what you need to do and why it’s important.
Wondering what else a buyer would want to see? Stay tuned…
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