Do you know how much your agency is worth?

If you are an agency owner or founder and you don’t know how much your agency is worth – you need to find out. Why? There are several reasons.

In a nutshell: your business (just like your home or personal vehicle) has market value. Thanks to the Internet, your agency most likely also competes on the world stage, which means that your business is also worth something on the international market. How should you grow? Where should you invest? Should you specialize or merge with another agency? Is there an opportunity to sell your business to a larger group and go global? Getting an estimated valuation of your business can pave the way for your agency’s future.

The Agency Valuation Calculator

The first step to answering all these questions is to figure out the value of your agency. To do this, you can use the Agency Valuation Calculator by Productive.

Productive is an end-to-end agency management tool that introduced the Agency Valuation Calculator so that agencies can get an estimate of their value in the market. This new tool can help you understand which parameters can positively affect your valuations in the future.

But before you use the Agency Valuation Calculator, read on to learn more about the basics of agency valuations.

Agency Valuation Methods

1. Multiples

Agencies are primarily valued using multiples. To put it simply, the more money your agency makes, the higher your multiplier gets – and so does your overall valuation.

2. Earnings and income

One of the...