STANDSTILL agencies are valued on past performance.
STANDOUT agencies are valued on future potential.
Being asset poor, marketing agencies are usually valued on their ability to generate cash. A track record of producing healthy profits is what you need when you are looking to sell your agency.
A buyer will normally apply a multiplier to your profit and base their offer to you on this. But what happens if you want to attract more serious buyers with more serious money?
You need to be thinking about potential as well as profit.
What can you build into your agency to make it even more attractive to buyers? What cutting edge work or IP can you create that will make buyers look beyond the numbers and desperate to have your business as part of their business?
This doesn’t happen a few weeks or month before a sale. It starts a year or maybe more before you start to talk to buyers. Start thinking about making your agency more attractive to buyers now, not when you decide it’s time to exit.
#StandoutOrDie
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