Selling a Digital Marketing Agency
No other industry is as relevant and fast-paced as marketing. With the Internet of Things (IoT) expanding to greater lengths each day, it’s easier than ever to connect with others for personal and commercial purposes. Digital marketing agencies recognized the value of advertising on digital mediums from the get-go, taking the marketing industry by storm. Today, digital marketing is worth more than $100 billion, and experts expect it to grow even more in the upcoming years.
If you’re thinking about selling a digital marketing agency, there’s no better time than the present. With digital marketing outperforming traditional marketing techniques, digital marketing agencies have become some of the most sought-after business ventures by major corporations. Whether you’re planning for retirement or looking to explore new opportunities, you can strike gold by selling a digital marketing agency.
Get the best value for your business by working alongside an Ashley Capital Group advisor. We understand that your business is one of your most prized possessions, so we’ll work tirelessly to get you the maximum ROI. Our advisors have extensive experience in the field of mergers and acquisitions across New York and New Jersey. Contact us today to speak to an advisor about selling your digital marketing agency.
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Digital Marketing Company Valuation
Just like selling a software or technology company, determining the right value of your digital marketing agency is key in negotiating a fair price. Your first inclination may be to recite the latest revenue figure in the books, but your company is worth much more than that.
How to Value a Digital Marketing Agency?
To find an accurate measure of performance and future growth for your enterprise, most buyers will immediately look at your profit margin. Calculating the profit margin of a digital marketing agency is notoriously difficult because profits are based on clients’ success — and clients are always changing their advertising budgets as they see fit. That’s why the most important step is to keep track of gross and net profit margins for each client.
But that’s not all. Although net profit margin is an important aspect of selling a digital marketing agency, even start-ups with low profit margins can be a great investment if you know where to look. In fact, we know where to look! We take into account all your revenue streams, your acquisitions, your geographical diversification, your niche services, and any other factors necessary to correctly estimate your future growth value.
Choosing the Right Buyer
You don’t want to sell your digital marketing agency just for a profit. You want to sell it to someone who is looking at longevity and profitability, just like you were. This is your legacy after all; you can’t let it fall into the wrong hands. When you have a good product on your hands, you’ll have a line of interested buyers looking to outbid each other. This is great, but what’s more important is choosing the right buyer. Make sure you’re dealing with a reputable buyer who presents you with a letter of intent (LOI) detailing their proposal. This way, you know what they value your company at and why. This will help you start the negotiation process for selling your digital marketing agency, where both parties can leverage a profitable price.
When you’re ready to sell your digital marketing agency, turn to Ashley Capital Group. We’ll appoint you with a trusted advisor whose sole job will be to fight for a better deal for you. Ashley Capital Group members have years of experience selling businesses in a variety of industries, from manufacturing to digital software. That means we’ll get you the best return on investment possible. We’re not only the right choice, but we’re also the only choice. Contact our offices today to start selling your digital marketing agency anywhere in New York and New Jersey.