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