Your Agency’s Value Isn’t Just About the Multiple
Ivona Namjesnik
Finance
In the agency M&A world, the parallels to real estate are hard to miss.
One sell-side advisor summed it up perfectly: “My job’s no different than a real estate agent’s. I only make money if the house sells, and I make more if it’s a nice house.”
That simple comparison explains why many M&A advisors focus their time and energy on high-multiple deals, the “nice houses” of the agency world. These are the agencies that check nearly every box:
Growing revenue and profits
Strong recurring revenue
Diversified client base
Clean financials
Clear market positioning
Low founder dependence
Strong leadership team already in place
These are the agencies that can fetch 6x, 8x, or even higher EBITDA multiples.
The Part You Don’t Hear About
Zoom out, and the M&A market looks much less tidy.
Some agencies are profitable but overly dependent on the founder.
Others have stalled growth.
Many rely on one-off projects, have messy financials, or operate with a lean team.
These businesses still change hands, but they rarely make the highlight reel. Deals might close quietly at 2–3x EBITDA… sometimes less.
Why Multiples Can Be Misleading
When exited founders or advisors share “market comps,” they’re often referencing a narrow, curated set of premium transactions.
It’s like assuming every house sells for $3 million because your broker only works in one luxury zip code.
The reality: multiples are shaped by a mix of structure, risk, timing (remember agency valuations during the ZIRP era), and who had access to the right advisors, networks, or buyers.
What You Can Control
You can’t dictate market conditions, but you can shape your approach whether you’re on the buy side or sell side.
Build your own value model.
Don’t rely solely on advisor comps. Understand the levers that drive value in an agency: quality of revenue, client mix, leadership strength, operational maturity.Be clear about what’s on offer.
If selling, know whether you’re presenting a turnkey operation or a fixer-upper. Agencies closer to “move-in ready” naturally command higher multiples.Match strategy to reality.
For buyers, some of the best opportunities are the under-the-radar, unpolished agencies that could thrive under new ownership. For sellers, set expectations based on the type of buyer your agency will attract.
The Takeaway
Headline multiples only tell part of the story.
The most successful buyers and sellers look beyond the number to see the real levers of value, and act accordingly.
Sometimes, the best deal isn’t the glossy $3 million house. It’s the one with the right bones, the right location, and the right buyer to unlock its potential.
