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In this episode of the Chats with Chip podcast, Rick Gould of Gould+Partners, an agency mergers and acquisitions advisory firm based in New York, provides useful insights for agency owners on the process of selling their agencies — including perspective on current trends in M&A.

By listening, you will learn:

• How agencies are valued and ballpark estimates of typical multiples
• When sellers pay buyers and the current mix of earn-outs versus cash at closing
• Why owners need to prepare years in advance of a successful sale
• Why agencies should be run as if they are going to be sold (even if that isn’t the goal) to ensure maximum profitability
• What explains the recent increase in M&A activity in the agency space
• What the introduction of consulting firms and private equity to the field of buyers means for sellers
• Why middle management can often be the key to better valuations
• What agency owners an expect post-sale
• How to reward key staff after a transaction
• Why agency owners need to do reverse due diligence on buyers
• What impact geography has on M&A

[read the transcript]

About Chip Griffin

Chip Griffin is the Founder & CEO of the Small Agency Growth Alliance (SAGA) and a longtime agency owner and executive. He helps PR and marketing communications agencies build better businesses. Full bio