How much is my agency really worth today

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In today’s M&A market, premium valuations are going to agencies that demonstrate:

  • 📈 Sustainable, predictable revenue streams
  • 👥 Diversified client portfolios
  • 🌍 Clear specialist positioning
  • 🔄 Scalable systems and leadership
  • 💡 A forward-looking edge in digital, AI and integration

In short, buyers pay for confidence in the future, not just performance today.

If you’d like to benchmark your agency against what buyers are paying, I’m happy to share insights from live deals we’re advising on.

When a client’s IP became the main attraction

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In M&A, real value often hides in plain sight.

We were advising a marketing communications business – strong numbers, solid performance, good story. But not quite enough to command a premium multiple.

So, we dug deeper.

Beneath the spreadsheets sat something far more powerful: a piece of original IP. A proprietary research methodology that had quietly become the reference point for the entire sector.

It wasn’t just a tool. It was the brand.

Competitors quoted it. Clients relied on it. Industry media referenced it.

We reframed the story, positioning this IP as the hero of the sale narrative. Suddenly, buyers could see what really set the business apart: recurring revenue, client stickiness, and genuine market authority.

They weren’t just buying a service business anymore.
They were securing the industry’s gold standard.

The result?
🔹 Real competitive tension
🔹 A significantly higher valuation multiple
🔹 The perfect strategic buyer

Takeaway: In M&A, your most valuable asset isn’t always on the balance sheet.
Sometimes, it’s the idea everyone else wishes they’d created.

The Cowboy Problem in M&A

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In every industry, some professionals follow the rules, and then there are cowboys.

In M&A, the “cowboy” is the advisor who:

  • Chase deals without understanding the sector
  • Promises sky-high valuations with no basis in reality
  • Pushes speed over substance, risking value and relationships
  • Disappears when things get tough

Recently, a potential client chose a firm that promised to supply just ten leads and work only on commission.
Sounds appealing, right?
The problem: there was no strategic targeting, sector insight, or thought to whether those “leads” were even serious buyers. That kind of scattergun approach often results in wasted time, damaged confidentiality, and, most painfully, a far lower price than the business deserves.

Selling a business is often a once-in-a-lifetime event.
You only get one shot to get it right.

Here’s the truth:
Real M&A value comes from deep sector expertise, disciplined process, and trust built over the years. Not from swagger, shortcuts, or “quick wins.”

If you’re thinking about selling your business, ask the hard questions.
Check the track record.
And watch out for the cowboy.

Your legacy deserves a trusted guide, not a wild ride.

#MergersAndAcquisitions #MarketingCommunications #BusinessSale #ExitStrategy #AgencyGrowth #FounderAdvice #BusinessValuation #StrategicExit #MandA #UKBusiness #CreativeAgencies #DealMaking

Our Purpose Building Legacies, Not Just Closing Deals

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Every M&A deal starts with numbers, charts, and a polished pitch deck. But the true measure of success isn’t found in spreadsheets alone; it’s in the legacy we help create.

At M&A Advisory, our purpose is simple but powerful:
To unlock exceptional outcomes for marketing communications entrepreneurs, enabling them to realise the value they’ve built, secure the right future for their people, and protect the culture they’ve nurtured.

We believe the right deal is more than a transaction. It’s a milestone that honours years of creativity, leadership, and resilience. It’s about ensuring your story continues, in capable hands, long after the ink is dry.

This is why we:

  • Go deeper into the Marcomms sector than anyone else, so we can match your vision with the right strategic buyer.
  • Build trust through transparency, because selling a business is one of the most personal decisions you’ll ever make.
  • Stand beside you at every step, navigating the complexity so you can focus on the bigger picture.

From pitch deck to legacy, our work is about more than deals; it’s about safeguarding what matters most to you.

Expert guidance. Trusted outcomes.

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That’s our promise and last year, it made all the difference.

We were advising a client on the sale of their agency. A private equity firm emerged as a serious contender. The partner leading the deal was charming, engaged, and persuasive. Multiple meetings took place. An offer was made. Heads of Terms were signed. Exclusivity was granted.

From the outside, it looked like a done deal. Our client was excited. But something didn’t sit right with me.

Despite the noise, there was no real movement. No due diligence. No draft SPA. Just… silence.

Trusting my instinct, I did some digging and discovered the partner hadn’t secured the full backing from his investment committee. There was internal friction. The deal was stalling.

We took control and negotiated an early release from exclusivity and then re-engaged a trade buyer we’d been speaking with. Their proposition? Stronger. Their value? Higher.

That’s who we completed with.

The lesson?

M&A is full of smoke and mirrors. What matters isn’t just finding a buyer it’s knowing which buyer will deliver. When to push. When to pivot. And when to act fast.

Anyone can run a process when everything goes to plan. The real value of an experienced advisor is knowing what to do when it doesn’t.

𝐖𝐢𝐥𝐥 𝐛𝐮𝐲𝐞𝐫𝐬 𝐮𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝 𝐭𝐡𝐞 𝐯𝐚𝐥𝐮𝐞 𝐨𝐟 𝐨𝐮𝐫 𝐭𝐞𝐜𝐡 𝐬𝐭𝐚𝐜𝐤 𝐨𝐫 𝐈𝐏?

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A common concern we hear from digital agency founders preparing for exit is this:

“𝘖𝘶𝘳 𝘐𝘗 𝘪𝘴 𝘶𝘯𝘪𝘲𝘶𝘦. 𝘉𝘶𝘵 𝘸𝘪𝘭𝘭 𝘢 𝘣𝘶𝘺𝘦𝘳 𝘢𝘤𝘵𝘶𝘢𝘭𝘭𝘺 𝘴𝘦𝘦 𝘪𝘵𝘴 𝘷𝘢𝘭𝘶𝘦?”

The short answer? 𝐎𝐧𝐥𝐲 𝐢𝐟 𝐢𝐭’𝐬 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐞𝐝 𝐜𝐥𝐞𝐚𝐫𝐥𝐲 𝐚𝐧𝐝 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜𝐚𝐥𝐥𝐲.

Buyers often struggle to quantify value in intangible assets like:
🔹 Proprietary tech platforms
🔹 Data analytics capabilities
🔹 UX innovations
🔹 Custom-built automation tools
🔹 Brand equity or creative IP

If these assets aren’t translated into language buyers understand, recurring revenue, client stickiness, scalability, strategic advantage, they risk being undervalued or overlooked entirely.

That’s where innovative M&A advisory makes all the difference.
We help founders 𝘣𝘳𝘪𝘥𝘨𝘦 𝘵𝘩𝘦 𝘨𝘢𝘱 between innovation and perceived value.

👉 We package the story around your IP in commercial terms.
👉 We highlight how your tech differentiates and delivers ROI.
👉 We match you with buyers who get your niche and are willing to pay for it.

Your tech stack isn’t just an operational asset. It’s a value driver…when positioned right.

Thinking about an exit in the next 12–36 months?
Let’s make sure your IP lands with impact 𝘢𝘯𝘥 value.

Are you looking to enhance the value of your business

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Whether you’re buying or selling, M&A transactions come with challenges.

Buyers often worry the business may underperform after acquisition, which can lead to reduced offers.
Sellers, meanwhile, are typically incentivised to grow the business post-deal and naturally want to maximise its value.

That’s why it’s in a seller’s best interest to make their business as robust and sustainable as possible before going to market.

But how do you assess the future sustainability of your business?

A strategic review can reveal whether your company represents a high-risk profile to buyers, and what steps you can take to strengthen its position and value.

What buyers see as red flags (and what drives valuations down):

▪ Low profits (typically under 15% of revenue) suggest vulnerability to even minor disruptions.
▪ Inconsistent trading performance and weak financial controls shake buyer confidence.
▪ Overreliance on one client or narrow service offering increases risk.
▪ Lack of differentiation without a clear edge, a business won’t stand out in a competitive market.
▪ Weak second-tier management raises concerns about succession and scale.
▪ Poor business development, depending solely on referrals or lacking a growth engine.

What sellers should highlight to increase value:

▪ Clear differentiation – what makes your business unique? Buyers seek IP, strong client relationships, long-term contracts, and standout market positioning.
▪ Consistent growth and healthy margins – signal a self-sufficient, resilient business.
▪ Innovation and market leadership – being ahead of the curve boosts appeal and future-proofing.

“Tackling these factors doesn’t just boost your appeal to buyers, it also builds a stronger, more resilient, and better-performing business today.”

Beware of the Unexpected Approach

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It’s flattering when a buyer approaches you out of the blue to acquire your business. It feels like validation. Proof that the blood, sweat and strategic thinking you’ve poured into your business is being noticed.

But beware—the unexpected approach may not be as good as it seems.

Too often, business owners in the marketing communications sector get drawn into conversations that are time-consuming, distracting, and ultimately lead to suboptimal outcomes.

Why? Because not all buyers are equal—and neither are their intentions.

  • Some buyers blanket the market, hoping to catch an owner on a bad day and strike a deal below market value.
  • Others may be strategically aligned—for them—but not for you. What’s a smart move for their portfolio may be a poor outcome for your legacy.
  • And crucially, owners often get approached when they’re not truly ready to sell—personally, professionally, or structurally.

These one-on-one discussions can drag on, leaving the seller with limited options and weakened negotiating power.

Instead, a structured process offers a better path:

  • Multiple buyers can be evaluated side-by-side.
  • You’ll likely identify a buyer who truly “gets” your business—who sees the synergies, shares your values, and can pay a premium.
  • Most importantly, you stay in control of the narrative and the timing.

At M&A Advisory, we often help businesses who’ve received that unexpected approach. Sometimes, we’ll work with the original buyer—but we also introduce others to ensure a competitive dynamic and a better result.

In the marketing communications space, if one buyer is interested, there are always more.

As a founder, you’ve built something valuable with vision, grit and sacrifice. When it comes to selling, don’t take a transactional approach to something that deserves a strategic one.

The Role of an M&A Advisor and Tips for Choosing One | M&AAdvisory Insights

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Mergers and acquisitions (M&A) are significant for any business, especially when selling. An M&A advisor acts as a guide, strategist, and negotiator to help ensure a successful transaction. Sellers often need the expertise advisors bring since buyers tend to have more experience with acquisitions.

Key Functions of an M&A Advisor:

  1. Valuation and Preparation: Advisors assess business value and help prepare it for sale, enhancing its appeal.
  2. Marketing and Buyer/Seller Search: They leverage networks to find suitable buyers discreetly and craft attractive narratives to present the business.
  3. Negotiation and Deal Structuring: Advisors handle negotiations objectively and structure deals that meet your goals.
  4. Due Diligence and Closing: They manage due diligence, coordinate with professionals, and ensure a smooth closing.

Choosing an advisor ensures the expertise needed for a successful M&A process.

How to Select the Right M&A Advisor:

Choosing the right M&A advisor is essential for a successful transaction. Here’s what to consider:

Legal Requirements: In the UK, advisors must be qualified accountants from a Chartered body or be registered with the FCA for financial expertise in M&A processes.

Industry Knowledge: An advisor familiar with your industry provides accurate valuations, targeted outreach, and effective negotiations.

Track Record: Look for a strong history of successful deals in your industry.

Network: Connections to buyers, private equity, and banks can open valuable opportunities.

Communication: Choose someone transparent, proactive, and consistent in keeping you updated.

Fee Structure: Understand and align the advisor’s fees with your budget and deal size.

Cultural Fit: Good chemistry ensures smoother collaboration over the course of the transaction.

An M&A advisor meeting legal requirements, understanding your industry, and aligning with your goals is key to a successful deal.

Learn more 

Are Earnouts Going the Way of Skinny Jeans? | M&AAdvisory Insights

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Earnouts, once the “skinny jeans” of M&A deals, are increasingly falling out of favour. For years, they were the perfect compromise: buyers could defer risk, and sellers had a clear incentive to deliver strong post-deal performance. But just like skinny jeans, their time in the spotlight seems to be fading—and for good reason.

At the heart of the issue is a tug-of-war over ownership and operational control. With an earnout in place, legal ownership doesn’t fully transfer until the final payment is made. For buyers, this is a logistical nightmare. They can’t fully integrate the acquired business, align cultures, or execute strategic changes without risking disputes. In fast-moving sectors like marketing communications, this delay can mean missed opportunities or, worse, a loss of competitive edge.

Sellers are also rethinking their stance on earnouts. These structures often breed conflict, as both sides struggle to agree on post-acquisition metrics like revenue, costs, and strategy. What starts as a collaborative partnership can quickly turn into a contentious negotiation, souring what was supposed to be a win-win deal.

What’s Taking Their Place?
Newer, more flexible deal structures are stepping into the spotlight. For example:

  • Minority Retentions or Buyer Shares: Sellers keep a stake in their business or take equity in the buyer. This aligns interests on both sides while giving buyers the operational control they need. Sellers benefit from future growth potential and can exit later—often at a higher valuation.
  • Deferred Payments and Price Adjustments: These alternatives tie payouts to pre-closing performance, sidestepping the common friction points of earnouts while still sharing risk.

These options offer a balance: buyers can integrate without delay, and sellers gain clarity and the chance for a second bite at the apple.

The Bottom Line
Earnouts still have their place, particularly in deals where future performance is unpredictable. But their rigidity doesn’t suit today’s demand for agility. Buyers want seamless integration; sellers want fairness and transparency. Neither side wants to be bogged down by the legal or emotional baggage of a complicated earnout structure.

So, are earnouts completely out of style? Not quite—but they’re no longer a default choice. Like skinny jeans, they’ll still work in the right situation, but only when the fit is just right.

Learn more