211: M&A for Agencies with Amanda Dixon

211: M&A for Agencies with Amanda Dixon

Author: Jake Jorgovan January 3, 2022 Duration: 31:52
Working Without Pants - Creative Entrepreneurship
ArtsBusinessCareersDesign

Digital agencies are very different from traditional businesses, thus buyers and sellers of these agencies need to approach M&A in a particular way.

 

In this episode of the Working Without Pants podcast, I sit down with Amanda Dixon, co-founder of Barney, to discuss how agency owners should be thinking about M&A to maximize their exit. We also talk about what buyers are looking for when acquiring digital agencies.

Amanda shares that M&A for digital agencies requires a different approach because the focus is on the human capital of an agency versus tangible assets, which is the case with many traditional businesses. She also notes that sellers of agencies are typically younger with long careers ahead of them. This creates unique deal structures.

To minimize their risk, Amanda says buyers prefer agencies with a lot of recurring retainer revenue and a more robust management team. Smaller freelance teams with project-based revenue are inherently riskier for buyers.

For agency owners looking to sell, Amanda says not to be scared of scaling up before your exit. Reaching a few more key financial milestones can go a long way for increasing your multiple on the sale.

Want to work with me as an advisor? Visit jake-jorgovan.com/coaching.

Resources:


For anyone running a creative agency or building a consulting practice, the daily hustle involves far more than just doing great work-it's about building a sustainable business on your own terms. Working Without Pants-Creative Entrepreneurship digs into that reality with host Jake Jorgovan. Instead of abstract theory, this podcast focuses on the tangible strategies and conversations that actually lead to landing better clients and more fulfilling projects. Jorgovan sits down with practitioners who have been in the trenches, people like Brennan Dunn, Brent Weaver, Kai Davis, and Blair Enns, to dissect what works now. You'll hear specific stories about pricing, positioning, sales conversations, and the operational shifts that allow a solo practitioner or small team to thrive without burning out. The discussions are grounded in the intersecting worlds of arts, business, and design, recognizing that creative entrepreneurship requires a unique blend of vision and commercial savvy. Tune in for a candid exchange of ideas that feels more like a mastermind session than a formal interview, all aimed at helping you refine your offer and reclaim your time. This is a resource for those ready to move beyond just being busy and build a business that truly works.
Author: Language: English Episodes: 100

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