How buyers think about multiples — not just the number itself

Most agency owners hear about valuation multiples before they understand what they actually represent.

A multiple isn’t a reward.
It’s a pricing of risk.

This page exists to explain how buyers think about multiples, so you don’t fixate on a number without understanding what sits underneath it.

What a valuation multiple really reflects

A multiple is a shortcut.

Buyers use it to express how confident they are that:

• profits will continue
• risk is manageable
• and the agency will survive the founder transition

Higher confidence leads to higher multiples.
Lower confidence compresses them — sometimes sharply.

The mistake many founders make is assuming multiples are about performance alone.
In reality, they’re about predictability and transferability.

Why two similar agencies can attract very different multiples

Agencies with similar revenue and profit often receive very different valuations.

That’s because buyers are asking questions like:

• How dependent is this business on the founder?
• How concentrated is the client base?
• How repeatable is delivery?
• How exposed is revenue to churn or budget cuts?

The multiple reflects how many things could go wrong after the deal completes.

This is why founders who only optimise revenue often feel surprised when valuation doesn’t follow.

Size matters — but not in the way most people think

As agencies grow, buyer perception changes.

Smaller agencies are judged heavily on:

• individual relationships
• personal credibility
• short operating history

Larger agencies are judged on:

• systems
• management depth
• reporting quality
• and integration potential

This shift is why valuation conversations often feel different once an agency crosses certain operational thresholds — even if growth hasn’t dramatically accelerated.

EBITDA Multiples Overview for 2026

Here’s a breakdown of the average EBITDA multiples for marketing agencies in 2026, categorized by agency type and profitability:

EBITDA Multiples for Marketing Agencies
Agency Type	EBITDA Range
	$1-3M	$3-5M	$5-10M
Digital Marketing	4.9x	6.1x	9x
Growth Marketing	5.1x	6.8x	10.2x
Performance Marketing	5x	6.4x	9.3x
Creative Marketing	4.7x	6.9x	8.2x
Social Media Marketing	5.3x	6.9x	9.2x
Advertising	5.6x	7.7x	9.5x
Account-Based Marketing	5.6x	7.2x	10.7x
PR & Communications	4.4x	6.4x	8.1x
Branding	4.7x	6.6x	9.1x
Traditional Marketing	5.1x	8.2x	10.5x

EBITDA Multiples for Marketing Agencies

Multiples move — expectations shouldn’t

Another common mistake is treating valuation multiples as static.

In practice, they move with:

• buyer appetite
• financing conditions
• sector sentiment
• and deal structure

Good founders don’t chase peaks.
They focus on building agencies that remain attractive across cycles.

That mindset tends to produce better outcomes than trying to “time the market”.

What founders should focus on instead of the number

If you’re early in your thinking, obsessing over a multiple is rarely productive.

More useful questions are:

• What makes my agency easier or harder to buy?
• Where does risk sit in this business?
• What would a buyer worry about on day one?

Answering those questions often does more for valuation than chasing growth alone.

This is why valuation insight is most powerful before a sale is imminent.

When multiples actually matter

Multiples become critical once:

• you’re seriously considering a sale
• your agency is properly prepared
• and buyers are actively engaged

At that point, understanding how different buyers think — and how deal structure affects outcomes — becomes essential.

That conversation only makes sense after readiness is established.

A final perspective worth holding

Founders who get the best exits don’t aim for a specific multiple.

They build agencies that:

• are resilient
• are understandable
• and can thrive without them

Multiples follow that reality — not the other way around.