Building an Exit-Ready Agency (Even When You’re Not Looking to Sell)

After nearly a decade in marketing agency M&A and hundreds of conversations with agency owners and many on my podcast M&A/Q&A, I’ve noticed something interesting: the best exits often come from owners who weren’t actively looking to sell. Let me explain why this matters for your agency.

The Value of Early Preparation

I recently spoke with Tommy, a digital agency owner who sold his business for 8.5x EBITDA at the start of this year. Know what he told me? “Andy, the groundwork we laid three years ago made all the difference.” He’s right. The time to prepare isn’t when you’re ready to sell – it’s now.

Key Areas to Focus On

1. Developing a Self-Sufficient Leadership Team

Your leadership team should be capable of running the agency without you. Full stop.

I see this mistake all the time in our M&A advisory work: owners who are so deeply embedded in daily operations that taking a two-week vacation would cause chaos. That’s not a business – that’s a job with employees.

Consider this approach:

• Identify your potential leaders early
• Give them real decision-making authority
• Let them make mistakes (within reason)
• Step back gradually

2. Building a Value-Driven Culture

Culture isn’t just about having values on your website. It’s about creating a framework for decision-making that exists whether you’re in the office or not.

One of my podcast guests put it perfectly: “Culture is what happens when no one is watching.” In M&A terms, that translates directly to bottom line exit value.

3. Creating Systems for Autonomy

Here’s something I’ve observed after reviewing hundreds of agency deals: buyers will pay a premium for systematized operations. They want to see:

• Documented processes
• Clear reporting structures
• Established client management protocols
• Reproducible sales systems

4. Transitioning Client Relationships

This is crucial, and I’ll share a quick story. Had a client last year – brilliant agency owner, but every major client insisted on dealing with her personally. When it came time to sell, this dependency cut the valuation by nearly 30%. Don’t make that mistake.

Start transitioning client relationships to your team now. It’s not about stepping away entirely – it’s about creating multiple points of contact.

The Financial Impact

Let’s talk numbers for a moment. In my experience with agency deals, businesses with strong leadership teams and documented processes typically command multiples 2-3 points higher than those dependent on the owner and sometimes even higher. That’s significant. And if the agency owner wants to leave early, then a strong leadership team is a must have.

Action Steps for Today

Even if selling isn’t on your radar (and I know it is, otherwise you wouldn’t be here), consider implementing these steps:

1. Document your core processes
2. Start developing your second-tier leadership
3. Create client relationship transition plans
4. Build reporting systems that don’t require your input

Final Thoughts

I’ve seen too many agency owners wait until they’re burning out to start thinking about exit planning. By then, you’re already behind the curve. The best time to start preparing your agency for sale is when you’re still excited about running it.

As I often tell guests on my M&A/Q&A podcast: Build your agency as if you might sell it tomorrow, but run it as if you’ll own it forever.

That said, if you are wanting to get out of your agency now, do not delay and wait until everything around you has gone to shit, as you’re burnt out and ready to quit. There’s always a buyer for an agency.

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