Question 1

How are digital agencies valued?

Accepted Answer

Agencies are valued as a multiple of monthly SDE, typically 18-36×. Retainer-heavy agencies (>70% of revenue on monthly retainer) command the upper end; project-heavy or single-client-dominant agencies clear 14-22×.

Question 2

What makes an agency hard to sell?

Accepted Answer

Three factors compress the multiple sharply: client concentration (any client >30% of revenue), founder dependency (founder still doing delivery), and undocumented processes. Removing all three before listing typically adds 30-50% to the sale price.

Question 3

How long does an agency sale take?

Accepted Answer

Typically 90-180 days. The diligence is heavier than a SaaS or newsletter sale because client contracts and team retention need to be evaluated. Plan for a 30-60 day earnout-style transition with the founder staying on.

What type of agency is it?