Digital Marketing Agencies potential and multiple

by a searcher from Harvard University - Harvard Business School

1 month ago

What are your thoughts on Digital Marketing Agencies? And what multiples have you seen? Hoping to hear from entrepreneurs who have bought/run this kind of business. TIA!

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searcher from University of Texas at Austin

Digital marketing agencies can vary a lot - some service types are much stickier. Customer concentration, churn, and owner-dependency can vary a lot. The industry seems to have a wide range of, call it###-###-#### 5x, with larger deals having larger multiples obviously. But my personal valuation is honestly the widest on digital marketing agencies b/c the quality can vary so much from agency to agency. FWIW, I bought a pest control business and submitted a few LOIs on digital marketing agencies. Very interested in the space.

2 weeks ago | like reply | 1 like

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