The Nation’s Leader in Selling Advertising & Marketing Agencies

Your Trusted Partner for Maximizing Agency Value

You’ve built an incredible business. Now, it’s time to turn your hard work into your next big opportunity. Selling your agency is a big decision—and you deserve a partner who understands your industry. At Waddell Mergers & Acquisitions, we specialize in facilitating the sale of advertising and marketing agencies across the United States. Our Team has successfully closed more transactions in the Advertising/Marketing Industry than any other M&A Firm in the country. Our deep industry expertise, strategic approach, and commitment to confidentiality make us the preferred choice for agency owners seeking to maximize their business's value and ensure a seamless transition.

Business advisors and agency owners in a strategic planning meeting.

Why Choose Waddell M&A for Your Agency Sale?

Industry Expertise: Our team has sold more in the advertising and marketing sectors than anyone in the country, understanding the unique dynamics and valuation drivers of the industry.

Customized Strategies: We develop tailored exit strategies that align with your specific goals, whether it's achieving the highest valuation, ensuring cultural fit with the buyer, or maintaining your agency's legacy.

Extensive Buyer Network: Our vast network includes strategic buyers, private equity firms, and international investors actively seeking opportunities in the advertising and marketing space.

Confidential Process: We prioritize discretion throughout the sale process, protecting your agency's reputation and client relationships.

Proven Track Record: Our successful transactions speak to our ability to deliver results that meet and exceed our clients' expectations.

Recently Sold

SEO specialists analyzing data during the acquisition process of their agency.

SEO Agency Sold for $1,000,000

Niche SEO agency specializing in one industry, EBITDA $404,048. Under contract in less than a month.

Team members of a full-service advertising agency celebrating a successful acquisition.

Full Service Advertising Agency Sold for $8,750,000

Full Service agency, EBITDA $1,458,310. Sold to a PE Group to start a new platform.

Digital marketing professionals collaborating during a transition of agency ownership.

Web Design and Digital Marketing Firm Sold for $3,250,000

Full Service agency, mainly focused on digital marketing and web design, EBITDA $723,582. Sold to a strategic buyer

Key Factors that Influence Advertising/Marketing Agency Value

Earnings History: Consistent revenue and profit growth over the past 3-5 years enhance valuation.

Revenue Streams: Agencies with recurring retainer contracts are typically valued higher than those relying solely on project-based work.

Client Concentration: A diversified client base reduces risk and increases value to buyers.

Client Relationships: Long term clients showcase the value the firm delivers and speaks to the firm's client retention ability.

Management Team: Experienced and stable leadership adds to the agency's attractiveness.

Financial analysts examining valuation charts and graphs.

Valuation Multiples

Valuation multiples are essential tools in small business transactions, providing a standardized method to estimate a company's value based on its financial performance. Unlike public companies that often use metrics like the Price-to-Earnings (P/E) ratio, small businesses typically rely on multiples such as Seller’s Discretionary Earnings (SDE), and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

Seller’s Discretionary Earnings (SDE) Multiples are commonly used for small businesses where the owner's involvement is significant. This metric accounts for the owner's salary and benefits, providing a clearer picture of the business's cash flow. SDE multiples for advertising/marketing agencies generally range from 1.5x to 3.0x, depending on factors like industry, location, and operational efficiency.

EBITDA Multiples are often applied to larger small businesses with more complex financial structures. These multiples typically range from 3.0x to 6.0x for advertising/marketing agencies and are favored because they normalize earnings by excluding non-operational expenses, providing a more consistent basis for comparison across businesses. Typically agencies with $4m+ of annual revenues would fall into this category

It's important to note that these multiples serve as starting points. Adjustments are often made to account for unique aspects of the business, such as customer concentration, growth trends, and market conditions. We can help ensure that these factors are appropriately considered, leading to a more accurate valuation.