Sell My Web Development Agency – AI-Powered Brokerage & Valuation
Planning an exit? Get a data-driven valuation, a buyer-ready package, and a confidential process designed for web and software service agencies.
How Much Is My Web Development Agency Worth?
Short answer: Valuation ≈ SDE/EBITDA × market multiple, adjusted for growth, client concentration, revenue mix (retainers vs projects), utilisation, billable rates, gross margin, pipeline/recurring coverage, and IP/contract risk.
Valuation, in brief (5 steps)
- Choose method: SDE for owner-led SMB agencies; EBITDA for larger, systemised firms.
- Normalise metrics: SDE/EBITDA, delivery margin, utilisation, average billable rate, % recurring retainers.
- Benchmark with comps: size band, niche/specialism (e.g., Shopify/WordPress/Headless), client GEO, project size.
- Adjust for risk: client/channel concentration, contract assignability, IP ownership, staff dependency/turnover.
- Run scenarios: base / upside / de-risked (e.g., retainer uplift, utilisation +5–10%), then set a defensible range.
Agency Valuation Multiples in 2025 (Indicative)
Ranges vary by size, quality, positioning, and buyer type. Treat these as directional bands, not guarantees.
| Profile | Basis | Indicative Range* |
|---|---|---|
| Owner‑operated, sub‑$500k profit | SDE multiple | ~2.0×–3.5× SDE |
| $500k–$2m profit, strong retainers | EBITDA/SDE multiple | ~3.0×–5.0× EBITDA (or SDE) |
| $2m+ profit, specialised & repeat revenue | EBITDA multiple | ~4.0×–7.0× EBITDA |
*Illustrative bands only; actual outcomes depend on growth, margins, utilisation, retainers %, client mix, risk, buyer type, and market conditions.
How We Value Agencies: Recurring %, Utilisation, Margin, Concentration
| Driver | Strong Signal | Effect on Multiple |
|---|---|---|
| Revenue Quality | ≥ 40–60% retainers; low churn; predictable backlog | Higher (stability) |
| Delivery Margin | Gross margin ≥ 45–55% with tight scope control | Higher (profit leverage) |
| Utilisation | Billable utilisation 70–80%+ with healthy rates | Higher (capacity efficiency) |
| Client Concentration | No client > 15–20% of revenue | Higher (lower volatility) |
| Sales Engine | Qualified pipeline, inbound SEO, partner referrals | Higher (growth durability) |
| Contracts & IP | Assignable MSAs/SOWs; clear IP; non‑solicits | Higher (smoother diligence) |
SDE vs EBITDA for Agencies: Which One Matters?
Smaller, founder‑led agencies are typically priced on SDE (profit + owner comp + normalised add‑backs). Larger, team‑run 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, recurring %, utilisation, margin).
- Runs sensitivity on utilisation, rates, and retainer mix to show multiple uplift.
- Ranks buyer fit (strategic vs financial) to indicate likely price/structure scenarios.
What to prepare (faster valuation)
- Last 24 months P&L + balance sheet; revenue by client/service; AR ageing; WIP/unbilled schedule.
- Retainers vs projects split; backlog; win rates; average billable rates; utilisation/time‑sheet exports.
- Top 20 clients with % revenue; contracts (MSAs/SOWs), renewal terms, termination/assignment clauses.
- Team/contractor roster, roles, rates, tenure; dependency map; hiring pipeline.
- IP & deliverables ownership clauses; open claims/disputes; insurance (PI/GL/Cyber).
Quick answers:
Revenue or profit multiple? Mostly SDE/EBITDA for agencies; revenue multiples are uncommon except at significant scale with high‑margin retainers.
What moves multiples fastest? Increase retainer share, raise rates where justified, tighten scope control, reduce top‑client concentration, and document SOPs.
Do certifications/partnerships help? Yes—e.g., official Shopify/Adobe/WP partnerships can expand buyer pool and support higher pricing.