Sell Your Full Service Agency
Selling a full service agency is a significant decision that requires understanding what makes your business attractive to acquirers. Full Service Agencies occupy a distinct position in the M&A landscape — buyers value them for their integrated marketing services spanning creative, digital, media, PR, and strategy under one roof. The market for full service agency acquisitions has grown steadily as PE firms and strategic acquirers recognize the recurring revenue potential and scalability of well-run agencies in this space.
If you have built a full service agency with strong client retention, documented processes, and a team that can operate without you, you are in a strong position to command a premium valuation. The key is understanding what buyers in this specific vertical are looking for and positioning your agency accordingly before going to market.
What Is a Full Service Agency Worth?
Full Service Agencies typically trade at 4-6x EBITDA in the current market, with EBITDA margins for well-run shops falling in the 15-22% range. Revenue multiples range from 0.7-1.2x, though buyers strongly prefer EBITDA-based valuations because they account for operational efficiency. A full service agency generating $2M in revenue with a 25% EBITDA margin ($500K EBITDA) might sell for $2M to $4M depending on growth rate, client concentration, and team depth.
The biggest value drivers for full service agencies are deep client relationships with large retainers, cross-service upsell capability, strong management team, diversified revenue across service lines. Agencies that can demonstrate these qualities consistently outperform the market on multiples. Conversely, key risks that compress valuations include complexity of managing multiple disciplines, lower margins than specialists, difficulty differentiating from other generalists, management depth requirements.
Who Buys Full Service Agencies?
The buyer landscape for full service agencies includes PE firms building diversified marketing platforms, holding companies, international agencies entering new markets, and strategic acquirers wanting a one-stop shop. Strategic buyers — typically larger agencies or holding companies — pay the highest multiples because they can realize synergies by cross-selling services, eliminating redundant overhead, and leveraging your talent across a broader client base.
Financial buyers like PE firms are increasingly active in the full service agency space, often pursuing roll-up strategies where they acquire multiple complementary agencies and combine them into a larger platform. These buyers typically offer competitive valuations but may structure deals with earnout components tied to post-acquisition performance targets.
Individual buyers — experienced operators looking to acquire and run an agency — represent the third major category. They tend to favor smaller agencies in the $500K to $2M revenue range and often seek SBA financing. These buyers value operational simplicity and a smooth ownership transition.
How to Prepare Your Full Service Agency for Sale
Preparation makes the difference between a good deal and a great one. Start 12-18 months before your target sale date by addressing these areas specific to full service agencies:
- Show revenue and margin breakdown by service line
- Demonstrate cross-selling success between disciplines
- Ensure department heads can operate independently of the founder
- Document integrated campaign workflows across services
- Present large retainer clients with multi-year histories
The most common mistake full service agency sellers make is waiting until they are burned out to start the sale process. By that point, growth has stalled, key people may have left, and buyers can sense the urgency — which weakens your negotiating position. Start preparing while the business is still growing and you are still engaged.
Full Service Agency Valuation Multiples
| Revenue Range | Typical EBITDA Multiple | Typical Revenue Multiple |
|---|---|---|
| $500K – $1M | 3-4x | 0.5-0.8x |
| $1M – $3M | 4-5.5x | 0.8-1.1x |
| $3M – $10M | 5.5-7x | 1.1-1.5x |
Multiples climb with revenue because larger agencies typically have more diversified client bases, deeper management teams, and more predictable revenue — all of which reduce risk for buyers. Within any revenue band, multiples are pushed higher by strong year-over-year growth (20%+), low client concentration (no single client above 15% of revenue), and high EBITDA margins relative to the full service agency average of 15-22%.
Ready to Sell Your Full Service Agency?
Whether you are ready to sell today or want to start planning an exit in the next 1-3 years, the first step is understanding what your full service agency is worth. Our free agency valuation gives you an honest, data-driven assessment of your business.