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A valuation can unlock
your agency’s future
Our detailed valuation process illuminates your agency’s strengths, potential, and market position, offering invaluable insights that can guide strategic decisions, attract buyers, and fuel growth.
Our process is fast, easy to
understand, and founder-friendly
Step 1:
Define the Goal
Understand your goals with a valuation
Step 2:
Collect Financials
Gather your agency's financial data
Step 3:
Analyze Financial Performance
Dive into your agency's historical financial performance
Step 4:
Assess Intangible Assets
Explore brand reputation & client relationships that contribute to value
Step 5:
Forecast Future Performance
Help you prepare financial forecasts
Step 6:
Analyze To Comparable Market
Benchmark against market standards
Step 7:
Apply Valuation Methods
Determine appropriate valuation methodology
Step 8:
Present Our Findings
Present the information you need to make informed decisions
Step 9:
Advise Strategically
Guide next steps, whether for a sale, investment, or strategic planning
We understand the unique nuances of agency valuations.
Leveraging our exclusive database of comparable transactions and our specialized valuation methodology tailored to the agency sector, our team stands ready to deliver accurate agency business valuations to founders.
We use an easy to understand pricing model
Our fee structure for valuation services is clear and straightforward. A one-time fee covers the complete assessment needed to determine your agency's value for a potential sale, giving founders crucial insights to inform their strategic decisions and effectively maximize value.
Less than $1M in annual revenue: $5,000 Less than $10M in annual revenue: $10,000 More than $10M in annual revenue: $15,000
Don’t go at this alone. Use our resources. Get inspired by our easy to understand valuation guides and let’s tackle this together.
Navigating Agency Worth: 10 Key Factors Influencing Advertising Agency Value
Unlock the secrets to understanding the value of your advertising agency with this comprehensive guide. Delve into the 10 critical factors that shape agency worth and gain valuable insights into maximizing your agency’s value in the competitive marketplace.
Some Merge Lovin’ 💛
The Merge team was great to work with throughout our search and acquisition process. From start to finish, they were very responsive and kept the process moving along nicely. I’ve only had positive interactions with the team to date with both our acquisition of SketchDeck and other opportunities that we have shown interest in.
Tyler Zara, SVP @ 24Seven, A Morgan Stanley Company
I thoroughly enjoyed working with the Merge team to close the transaction. From start to finish I had a personalized experience and appreciated their ability to navigate the due diligence process and manage expectations for both parties. The team was organized, communicative and proactive in keeping up momentum and pushing the deal across the finish line.
Nick Fraunfelder, Founder & Managing Partner @ AJAX
This was not the first time we transacted with a Merge-listed company, but one thing remained consistent: the Merge team takes time to understand the people behind the transaction. In addition to managing a smooth process, they focused on developing a partnership between buyer and seller – that alignment was critical to the deal.
Mathew Landon, Managing Partner @ Contour Ridge
Using Merge during our acquisitions of The Boston Group was a game-changer. Their approach and experience working with agencies streamlined the process, making it significantly more efficient and effective. The insights and analytics provided by Barney enabled us to make well-informed decisions quickly while ensuring we fully understood the value and risks involved.
Matt Naffah, Partner & COO @ Isovera
What
The
FAQ
Key factors include revenue and profit trends, client diversity and retention rates, the strength of the agency’s brand, proprietary technology or processes, and the experience and skill set of the team. Market demand and competitive landscape also play crucial roles.
Market conditions can significantly impact valuation. In a strong market, buyers may be willing to pay a premium for agencies with a solid track record. Conversely, in weaker markets, buyers may be more cautious, potentially affecting the valuation negatively.
Critical financial metrics include EBITDA (earnings before interest, taxes, depreciation, and amortization), gross and net profit margins, revenue growth rate, and the stability of cash flows. Client acquisition costs and lifetime value can also be important.
Focus on improving profitability, securing long-term client contracts, diversifying your client base, investing in scalable systems and technologies, and building a strong management team. Documenting processes and ensuring clean financial records are also crucial.
The process can vary but typically takes between 4 to 8 weeks, depending on the complexity of the business and the availability of detailed financial and operational information.
A reputable M&A firm will strive to minimize disruption by efficiently gathering necessary data and conducting most analyses off-site or during off-peak hours.
Yes, M&A firms should operate under strict confidentiality agreements to protect your agency’s sensitive information throughout the valuation process.
Absolutely. Getting a valuation can be a strategic move to understand your agency’s market position, even if you’re undecided about selling. It provides insight into areas for improvement and potential growth opportunities.
You’ll typically need to provide financial statements (income statements, balance sheets, cash flow statements) for the past 3-5 years, client contracts, details of any proprietary technologies or processes, and information on the management team and employee structure.
Client diversity is assessed based on the spread of revenue across your client base to ensure that no single client’s loss would significantly impact the agency’s financial health. A diversified client base generally leads to a higher valuation.
Proprietary assets are evaluated based on their uniqueness, market demand, contribution to revenue or efficiency, and the cost or difficulty for competitors to replicate.
A strong, well-recognized brand and positive industry reputation can significantly enhance an agency’s valuation by demonstrating market leadership, client loyalty, and the potential for sustainable growth.
The skills, stability, and reputation of your team, especially the management layer, are critical. A talented, committed team with a low turnover rate adds value by ensuring business continuity and the potential for future growth.
Once the valuation is complete, you’ll receive a detailed report outlining the value of your agency and the key factors influencing it. This can serve as a foundation for making informed decisions about potential sale or growth strategies.
If new, significant information comes to light or if market conditions change dramatically, a revaluation can be requested. It’s important to discuss such possibilities upfront with the M&A firm conducting the valuation.