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3 Ways to Increase Your Agency's Value

Updated: Feb 21

Improve the total value of your agency when you're ready to sell by taking these three actions.

Whether you're planning an exit strategy in the near future or just want to be prepared for the day you decide to sell, increasing your agency's value is a smart and strategic move. Here are 3 things that you can do today to set yourself up for future success.

1. Pick up the Pace

Buyers pay a premium for agencies growing at an above-average pace.

A significant fear for a buyer is that their acquired business may shrink. Whether the buyer is on the smaller side, a regional player, or a national PE-backed agency, sellers with core revenue growth are attractive. As a result, buyers tend to pay a premium multiple for agencies growing above average pace.

Start with what is working to generate sales. Can you pick up the pace?

  • Hire a few commission-heavy producers

  • Double down on effective marketing strategies

  • Implement cross-selling campaigns

  • Secure heavy lead flow enterprise partnerships

2. Eliminate the waste

Cutting expenses and improving profits will drive your value higher.

There are typically a ton of areas where agency owners can cut expenses that won’t negatively impact growth. Since most agency acquisitions are valued as a multiple of EBITDA, improving profits is a guaranteed strategy to drive your value higher.

Pull out your P&L and a magnifying glass. What is necessary for growth and what isn’t?

  • Evaluate comp plans

  • Evaluate your tech stack and vendor contracts

  • Assess marketing spend and cut dollars that are not returning positive results

3. Kill the space

Consolidating locations can lead to a higher sales price.

Whether it be for generational decisions, past acquisitions, or due to previous partnership alliances, many agency owners have multiple leases for various agency locations.

Review your lease contracts and evaluate your options.

Unless eliminating a location could prove detrimental to retention or growth, consolidating locations is an easy way to reduce an often significant expense, leading to a higher EBITDA and eventual sales price.

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