What Is the Magic Agency Price When Selling Your Agency?

By Jason Swenk on September 18, 2013

Most business owners are too busy within the business itself to even think that a company is looking to buy exactly what they have, but big companies are looking to buy your agency right now. However before you go to consider if you should sell your agency, you need to understand and chat with an experienced person in valuing and selling your agency. Knowing your agency price will take away some of the stress and create a base for you to only accept offers that your agency is worth.

Know Your Agency Price

If someone or another business has expressed interest in buying your agency, knowing your agency price as well as the different factors that give you leverage when it comes to negotiating a price with a buyer is very important. There are different factors that can affect the sale of your agency and how much profit you can make from it.

Here are the top factors that impact the sales price of your company:

  1. The total profits and revenue for the past three years.
  2. The ability to verify the financials and the quality of financials.
  3. Will the owner remain in place for an extended period after a sale?
  4. Can the business survive the exit of the owner?
  5. What’s the 12-24 month forecast for the business, industry, and overall economy?

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