(01)EngagementOverview

Entrepreneurial buyer acquires AdLeg Inc for growth.

Founded in 2014, AdLeg Inc. is a YouTube Ads management agency specializing in full-service campaign execution, including ad scripting, video editing, and funnel optimization. With a 100% retainer-based revenue model, AdLeg provided a steady and predictable income stream while maintaining long-term client relationships. The agency’s success was largely driven by an inbound sales pipeline fueled by its strong social media presence, including a 9,000-member Facebook group. With a proven client model, experienced team, and well-established operations, AdLeg was positioned as an attractive acquisition target for an entrepreneur seeking a profitable, scalable business in the digital marketing space.

(Details)

  • Engagement Valuation & Market Positioning, Buyer Targeting & Outreach, Offer & Negotiation Support, Due Diligence Management, Closing & Transition Support
  • Type Growth Investment
  • Category Digital Product & Web Development, SEO, Paid Media & Lead Generation, Under $10M
  • Buyer Type Entrepreneurial Buyer
  • Deal Size Under $5M
  • Services Sell-Side Representation

(02)Inside TheEnterprise

Who Is AdLeg Inc.?

AdLeg built a reputation as a premier agency for businesses looking to maximize their return on investment through YouTube advertising. The agency provided more than just media buying, offering ad scripting, video production, tracking implementation, and conversion funnel optimization. This full-funnel approach set AdLeg apart from traditional digital marketing firms, making it a valuable partner for clients seeking a comprehensive YouTube advertising strategy.

In addition to client services, AdLeg established itself as an authority in the YouTube Ads space through education and training. The agency’s YouTube channel and online coaching programs attracted new business while positioning AdLeg as a trusted leader in its niche. By leveraging an inbound sales model, the agency consistently secured new clients without the need for aggressive outbound sales efforts, a key differentiator that contributed to its long-term success.

(03)Founder'sMotive

The Why Behind The Sale

After years of running and growing AdLeg, founder Kyle Sulerud made the decision to sell the business to step away from agency life and spend more time with his family. Having built a strong and profitable business with a talented team in place, Kyle wanted to ensure that AdLeg would continue to thrive under new leadership. The sale provided him with financial freedom while allowing him to transition out of day-to-day operations without disrupting the agency’s ongoing success.

(04)Founder’s Vision

Criteria for the Perfect Acquisition Fit

For Kyle, finding the right buyer was about more than just securing the best financial offer. He wanted to ensure that AdLeg’s next owner would have the operational and strategic capabilities to continue growing the agency while maintaining its strong client relationships. The ideal buyer needed to understand digital marketing, respect the agency’s existing processes, and be committed to preserving AdLeg’s reputation. Transparency and a seamless transition were also critical factors in Kyle’s decision to sell, as he wanted to provide stability for both the agency’s team and its clients.

(05)Setting the Stage

Preparing AdLeg for Acquisition

To position AdLeg as an attractive acquisition target, Merge emphasized the agency’s strong financial performance, operational efficiency, and scalable growth model. With 100% of revenue generated through retainer clients, AdLeg offered a stable and predictable income stream that made it a compelling investment opportunity. The agency’s inbound sales pipeline, fueled by its content marketing strategy and social media presence, demonstrated its ability to attract new business without heavy reliance on outbound sales.

Another key selling point was the agency’s experienced and well-structured team. With systems and processes already in place, AdLeg was designed to operate efficiently without requiring significant day-to-day involvement from the owner. This made it an ideal acquisition for an entrepreneur looking for a business that could be managed and scaled with minimal disruption.

(06)Attracting Suitors

Strategic Marketing of AdLeg for Acquisition

AdLeg’s strong financials, recurring revenue model, and digital-first operations attracted multiple buyers interested in acquiring a well-established marketing agency. The agency stood out as a business with a built-in audience, proven client acquisition strategy, and highly specialized expertise in YouTube advertising.

Among the potential buyers, Tyler York emerged as the best fit. With a background in digital marketing and a strong desire to own and operate his own agency, Tyler was well-positioned to take over AdLeg. He secured an SBA loan to fund the acquisition, allowing him to leverage financing while ensuring the agency’s continued success. His vision for scaling AdLeg aligned with Kyle’s desire to see the agency thrive beyond his ownership.

(07)Sealing the Deal

Perfect Matchmaking with the Ideal Buyer

Tyler’s ability to connect with Kyle and clearly outline his plan for operating the agency post-acquisition made him an ideal buyer. His marketing background, combined with his entrepreneurial mindset, reassured both clients and employees that the agency would remain in good hands. With a structured transition plan in place, Tyler stepped into ownership smoothly, ensuring continuity for AdLeg’s team and clients.

Less than a year after the acquisition, AdLeg was recognized in US Business News as a top digital marketing agency, further validating its continued success under new leadership. The deal provided Kyle with the opportunity to step away from the business while giving Tyler a well-established agency with a clear growth trajectory.

(08)Unlocking Synergies

Positive Impacts Post-Transaction

Following the acquisition, Tyler successfully maintained AdLeg’s strong performance while implementing new growth strategies to further scale the business. The agency’s inbound sales pipeline remained highly effective, continuing to generate new client opportunities. Under Tyler’s leadership, AdLeg expanded its media buying capabilities, strengthened client relationships, and further optimized its educational content strategy to attract new business.

The agency’s retention rate remained high due to its consistent service delivery and structured client management processes. With a strong operational foundation and an experienced team in place, AdLeg was well-positioned for long-term success.

(09)Finding a New Home

The Merge Difference

Merge played a critical role in identifying the right buyer for AdLeg, ensuring a seamless transition and long-term alignment. By positioning AdLeg as a high-value acquisition opportunity, Merge attracted multiple buyers, ultimately securing a deal that benefited both Kyle and Tyler. Through strategic deal structuring, negotiation, and transition planning, Merge facilitated a transaction that allowed Kyle to successfully exit the business while ensuring AdLeg’s continued growth under new ownership.

The acquisition of AdLeg highlights Merge’s expertise in matching high-performing digital agencies with the right buyers, creating long-term value and sustainable success for all stakeholders involved.