When asked about the worth of a unique or uncommon item they were looking to sell someone once commented “It’s worth whatever I can get someone to pay for it”.
At Athru Partners, we are often asked by owners/founders of professional services firms, each of who views their business as being unique, “What’s my agency worth? Our answer is that it is not as easy as a multiple of EBITDA or even a factor of topline revenue which tend to be the most often used measures by buyers to quickly determine a valuation
We know from years of experience and successful transactions related to the professional services category on both the buy and sell side that there is a lot more that should go into the valuation: Factors that aren’t found strictly in the agency’s financial reports. Variables like longevity of the business, types of ownership, composition of accounts, stability of employees, duration of contracts, categories served, services offered and many more.
In all, we evaluate an agency for 21 key metrics that we have shown are the most important drivers for increasing an agency’s value and helping determine if it will be a successful sale candidate.
To get our complete list of “The Athru 21”, the most important factors for valuing your business/agency, just provide us with the information below and we will send it to you free of charge.