They Got Acquired - Deal terms

May 23, 2023
​Read on web​

We’ve heard recently from several agency owners who are thinking about selling and want to know what deal terms typically look like for agencies.

This is good timing, because we’re preparing to release our Agency Deals report, showcasing case studies of agencies that have sold.

We’ll share that here next month! And like all our reports, we’ll offer a free version.

Today’s story is an interesting example of an agency sale.

While the founder didn’t return our requests for comment, we were able to find lots of details that had been made public:

• Type of agency: Marketing, specifically PPC
• When it sold: February 2022
• Sale price: $3.25 million
• Deal terms: $250,000 in cash, the rest in stock
• Revenue: $3.8 million annually (forecasted)
• EBITDA: $1.4 million (forecasted)
• Multiple: 0.85x revenue & 2.3x EBITDA (based on forecasts)

If you’re studying deal structures to prepare for your own sale someday, it’s worth noting that most of this deal was in stock.

Most founders look to increase cash payout to reduce risk, but sometimes founders have reasons for agreeing to heavy stock deals.

Here’s the full story:

​How this founder’s immersion in PPC advertising turned into a $3.25M sale​

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Want a clear roadmap and a supportive partner to help you get there? Book a call to see if you're a fit:

Behind the business (about TGA)

Thanks to those of you who invested in the 1-hour course we launched last week, How to Sell Your Business.

One friend emailed me and asked, in much more colorful language:

Why is this so cheap? It should be $2,000!

We priced it accessibly for two reasons:

1. To invite as many entrepreneurs into the course as possible. We want this to be a trusted resource whether you're looking to sell for $150,000 or $10 million.
   ​
2. We're hoping that once you get a taste of what we offer, you'll want more!

What does more look like?

We envision launching a membership later this year, one that gives you access to other founders who've sold and experts who can answer your questions as you build with an exit in mind.

In other words, this course is just the beginning.

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​
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🙌 How we can help

Here's what we offer for founders looking to sell in the next year:

- Help choosing an advisor or broker you can trust

- M&A coaching if you have a potential buyer or want to approach buyers on your own

- A sounding board (free call) if you're not sure where to start

- Reports full of case studies and data about other founders who sold

- Posts covering the basics of how to sell your business​