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How to SELL your Digital Agency. The 7 things you need to know before you sell

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Most business owners are too busy in the business to even think that a company is looking to buy exactly what they have, but companies are looking to buy your business right now. But before you go to sell your business, you need to understand how to position, prepare and value your business. Find out the following: *The KEY questions to answer before planning your Exit Strategy (selling your agency). *The key elements of a SELL...how do you prepare yourself? *The top reasons why a "buyer" wants to buy an established agency. *What you can do to improve your valuation? These are the important aspects you must pay attention to. *A list of questions that you can use to interview potential buyers...we give it to you for FREE. For more information, go to http://www.jasonswenk.com

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Page 1: How to SELL your Digital Agency. The 7 things you need to know before you sell

7 Things You Need to Know Before Planning Your Exit Strategy

Page 2: How to SELL your Digital Agency. The 7 things you need to know before you sell

Recent study over the past 20 years showed only 1/4 of 1% sold their agency.

Interesting Stat

Page 3: How to SELL your Digital Agency. The 7 things you need to know before you sell

!

• Hire “A” players. • Work “on the business” and not “in the business.” • Surround yourself with the right people.

!

Run it like you’re going to sell it.

Page 4: How to SELL your Digital Agency. The 7 things you need to know before you sell

Reasons why someone looks at Selling.

• Struggling with sustained growth? • In an unsustainable role? • Someone interested in acquiring your business? • If I had access to capital, I could … • Can sell your company today and retire? • My office lease is up in a couple of months.

Page 5: How to SELL your Digital Agency. The 7 things you need to know before you sell

Reasons why Buyer Buys!!

• Ability to grow and scale rapidly versus organic path

• Geographical opportunity • Inability to create internally • Go after the “other dollars” the clients are

spending

Page 6: How to SELL your Digital Agency. The 7 things you need to know before you sell

What are elements of a Sale?

1. Cash 2. Earn out 3. Equity conversion 4. Executive position

Page 7: How to SELL your Digital Agency. The 7 things you need to know before you sell

Questions to ask the Buyer

• Why are you interesting in growing? • Why do you see us as apart of this vision? • What other types of firms are you talking with? • Have you gone through this process? • How are we going to define eventual success?

Page 8: How to SELL your Digital Agency. The 7 things you need to know before you sell

What do you tell the Buyer

• Full time employee count • Agency gross profit and trends • Major clients • Nature of work you do

!Important: • Everything they ask for, you need to ask for

as well. • Wander their office.

Page 9: How to SELL your Digital Agency. The 7 things you need to know before you sell

What makes a Good Target

• Niche market that you are the expert in • Highly compensated personally • Willing to tie portion to an earn out, over time • They want high connection with clients and with

the key people in the company (great client at high levels

• Willing to work for someone else • Willing to sign a non-compete

Page 10: How to SELL your Digital Agency. The 7 things you need to know before you sell

What improves your Valuation?

Page 11: How to SELL your Digital Agency. The 7 things you need to know before you sell

Intellectual Property

1. Software 2. Processes 3. Assets 4. Clients#1

Page 12: How to SELL your Digital Agency. The 7 things you need to know before you sell

Key clients, but not a huge concentration on one client.

#2

Page 13: How to SELL your Digital Agency. The 7 things you need to know before you sell

Find ways to improve margins

1. Not under pricing 2. Not over servicing 3. Stop trading time for money#3

Page 14: How to SELL your Digital Agency. The 7 things you need to know before you sell

Multi-Channel Marketing Strategy

1. Inbound marketing 2. Strategic partnerships 3. Content marketing 4. Events

#4

Page 15: How to SELL your Digital Agency. The 7 things you need to know before you sell

Track Key Performance Indicators

1. Gross margins 2. Net margins 3. Burn rate 4. Fully burden rate 5. Customer lifetime value 6. Acquisition cost of new client 7. Win percentage 8. Project effective rate 9. Billable time percentage

#5

Page 16: How to SELL your Digital Agency. The 7 things you need to know before you sell

Structured Sales Process

1. Review pipeline regularly 2. Create stages of sales 3. Make COMMITMENTS 4. Accountability / tracking 5. Future pipeline projections

#6

Page 17: How to SELL your Digital Agency. The 7 things you need to know before you sell

Outside Perspective

1. Seeing it all objectively 2. Experience in bigger transactions 3. Accountability is critical 4. Challenge “old” thinking#7

Page 18: How to SELL your Digital Agency. The 7 things you need to know before you sell

Workshop Valuation

Let me know if you would like to chat and I can help answer the unknown and unanswered questions you may have. There's no charges for this, and there's no obligation of any kind.

http://www.jasonswenk.com/sell-your-agency.html