Full service advertising agency multiples?

searcher profile

May 25, 2021

by a searcher from University of Virginia-Darden - Darden School of Business in Salt Lake City, UT, USA

Hi all, I'm looking seriously at a full-service advertising agency and valuation is an issue. Lot's of disagreement about multiples out there, especially since margins are below industry average. Basically, it's a $10M company with the EBITDA of a $5M company. As we all know larger companies get larger multiples, so the seller is probably viewing it based on revenue size, but I'm looking at based on EBITDA size.

We're doing earnouts and all of that. Does anyone have insight into multiples in this industry?

Thanks in advance!

Dan

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Reply by a searcher
from College of William and Mary in Clifton Park, NY, USA
I am not an industry expert, but you can use a site like Equidam and what they have here https://www.equidam.com/ebitda-multiples-trbc-industries/ as a starting point and then maybe apply adjustments based on some of the factors in sub-categories or specifics of the agency as mentioned in this article https://digitalagencynetwork.com/digital-marketing-agency-valuation-how-much-is-your-digital-marketing-agency-worth/
commentor profile
Reply by a professional
from Oregon State University in Kuna, ID, USA
Hey Dan! I am going to message you with some information BVR has in our DealStats database.
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