Whatever the reason may be, you’re currently considering selling your digital agency. It’s a decision many founders and business owners have to face, and it isn’t always easy. But one thing that will always make it a lot harder is not being prepared.
In order to get top dollar out of your agency sale, there are a number of important factors to consider — why you’re selling, who you are looking to sell to, and how to go about it. But before anything else, you have to know your business on a deeper level. Yes, that means your finances.
So here’s some helpful things to consider as you figure out how to sell your digital agency for the best price.
Let’s start with why exactly you’re selling. Through experience, we’ve learned that there are three main motivators for selling an agency.
Timing is everything. And the best timing is really determined by your data. When your company valuation shows you’ve got nothing to lose, you’re far more marketable than when it proves you’re desperate. But regardless of your financial health status, the more you know about your business, the better you can market yourself to the right buyers.
Think of it this way. If you’re buying a new car, you want to see some numbers; the cost, gas mileage, financing. Buying a business isn’t any different. The more data you can provide your potential buyers and the better you can highlight your strengths, the more likely you’ll find one — the right one.
And more often than not, finding the right buyer means leveraging your own extended network. It means having candid conversations with your contacts and asking if someone you know knows anyone who may be interested. Eventually, the word will get to the right person. But then it’s up to you to be prepared.
There are two primary ways to actually sell your agency, defined by which aspect of your business your buyer is acquiring from the sale. It’ll also depend on what your business has to offer.
No matter what your goals or approach may be for selling your agency, the only way to get top dollar for your business is truly knowing what it’s worth. Even if selling isn’t in the immediate plans, tracking your profitability and utilization now is the only real way to understand what steps you can take now to improve. With better financial health, you can start enjoying the success now and really enjoy the pay out later.
To learn more about the most effective way to track all your financial data in one place, contact Metric.ai today.