Sell My Digital Marketing Agency – AI-Powered Brokerage & Valuation
Thinking of an exit? Get a data-driven valuation, a buyer-ready package, and a confidential process designed for agencies.
How Much Is My Digital Marketing Agency Worth?
Short answer: Valuation ≈ Annual Net Profit (SDE or EBITDA) × market multiple, adjusted for growth, client retention, recurring retainers, gross margin, utilisation, client/contributor concentration, contracts, and IP/process maturity.
Valuation, in brief (5 steps)
- Choose method: SDE multiple for owner‑led SMBs; EBITDA for larger/systemised firms.
- Normalise metrics: revenue mix (retainer vs project), gross margin, SDE/EBITDA, add‑backs, utilisation/billable rates.
- Benchmark with comps: niche (SEO/paid/social/creative), size band, growth, client tenure, contract terms.
- Adjust for risk: client concentration, churn, key‑person dependency, non‑solicit/NCAs, IP/process maturity.
- Run scenarios: base / upside / de‑risked (e.g., +retainer share, +margin, diversified clients) and set a defensible range.
Agency Valuation Multiples in 2025 (Indicative)
Ranges vary by size, quality, niche, and buyer type. Treat these as directional bands, not guarantees.
| Profile | Basis | Indicative Range* |
|---|---|---|
| Owner‑operated, <$500k annual profit | SDE multiple | ~2.0×–3.5× SDE |
| $500k–$2m annual profit, steady growth | SDE/EBITDA multiple | ~3.0×–5.0× SDE (or 4.0×–6.0× EBITDA) |
| $2m+ annual EBITDA, strong metrics | EBITDA multiple | ~5.0×–8.0× EBITDA |
*Illustrative bands only; actual outcomes depend on growth, retention, margin quality, risk, buyer type, and market conditions.
How We Value Agencies: Retainers, Margins, Utilisation, Concentration
| Driver | Strong Signal | Effect on Multiple |
|---|---|---|
| Revenue Quality | 60%+ recurring retainers; low project volatility | Higher (predictable cash flow) |
| Client Retention | 12–24m avg tenure; low churn; NPS/referrals | Higher (durable revenues) |
| Gross Margin | 50–65%+ with controlled fulfilment costs | Higher (profit potential) |
| Utilisation | Billable utilisation >75%; efficient delivery | Higher (operational efficiency) |
| Concentration Risk | No client >15% revenue; diversified channels | Higher (lower volatility) |
| Contracts & IP | Assignable MSAs/SoWs; non‑solicit; SOPs; playbooks | Higher (smoother diligence) |
SDE vs EBITDA for Agencies: Which One Matters?
Smaller, owner‑led agencies are commonly priced on SDE (profit + reasonable owner compensation + normalised add‑backs). Larger, systemised firms trend to EBITDA. We compute both and align to the likely buyer pool.
How our AI model improves the valuation
- Maps your metrics to live deal/comparable bands (size, niche, retention, margin quality).
- Runs sensitivity on retainer share, staffing mix, and utilisation to show multiple uplift.
- Ranks buyer fit (strategic vs financial) to indicate likely price/structure scenarios.
What to prepare (faster valuation)
- Last 24–36 months P&L/BS/CF; revenue by service; retainer vs project split; add‑backs.
- Client list with tenure/revenue; churn reasons; pipeline/forecast; pricing sheets.
- Delivery metrics: utilisation, billable rates, vendor/freelancer spend, tools stack.
- Contracts/IP: MSAs/SoWs, assignability, non‑solicit/non‑compete, trademarks, playbooks/SOPs.
- Case studies, results, and references/NPS.
Quick answers:
Revenue or profit multiple? Mostly profit (SDE/EBITDA). Revenue multiples are rare and reserved for large, highly recurring agencies.
Do awards matter? Only indirectly. Buyers weight retention, margins, processes, and concentration more.
What improves my multiple fastest? More retainers, better margins/utilisation, diversified clients, stronger contracts/SOPs.