Digital Growth Agencies

searcher profile

February 13, 2025

by a searcher from Columbia University - Columbia Business School in New York, NY, USA

Hi,

I'm looking into digital growth agencies, think marketing campains, pay-per-click optimization, ad campain management etc.. Anyone has been looking into it? Any thoughts on:
- afinity with typical searcher fund profiles?
- anticipated headwinds with new tech (e.g. ai/automation etc)

If anyone has looked into it, I'd love to pick your brain or exchange notes.

DM, or leave a comment and will coordinate.

Thanks in advance

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commentor profile
Reply by an intermediary
from The University of Michigan in Austin, TX, USA
We are representing this digital marketing agency: https://www.websiteclosers.com/businesses/sba-pre-qualified-full-service-digital-marketing-firm-95-retainer-clients-5200-average-monthly-contract-17-years-in-business/112585/

Let me know if you would like more information.
commentor profile
Reply by a searcher
from Harvard University in San Juan, Puerto Rico
I bought one. Iwouldn't be worried too much about AI, automation, but I would be worried about the competitive dynamics. Industry is very very competitive and the biggest problem is that clients pay you for results, yet you really don't have a lot of control over these results as these depend a lot on the market dynamics of the particular niche/location the client is in. I think they can make for good acquisitions due to their high operating leverage, but if I had to do it over again I wouldn't go 90% SBA leverage on them due to the inherent risks. Find a way to structure the deal with less debt or more flexible seller carry.
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