Key factors driving the valuation of your agency

On February 14, Productive hosted a live webinar with Cactus, a corporate M&A advisory and growth consultancy for agencies. Mark Sainthill, Managing Partner at Cactus, spoke with Marija K. Vlasic, Content Specialist at Productive about the key factors that drive the valuation of your agency.

Recently, there has been a great interest in agency valuation topics in the digital industry. At some point in their careers, agency owners begin to wonder how much value they created while building their agency. They may not have the slightest intention of selling the agency yet, but they are still curious about its value. So where do you even begin?

We’ve covered the key factors you should consider when thinking about a strategic M&A exit in a previous webinar we hosted with Madison Alley, so be sure to check out the summary of that webinar as well.

To help you get started, you can also check out the Agency Valuation Calculator by Productive, an end-to-end agency management tool that can help your agency thrive. The Agency Valuation Calculator will give you a value estimate in less than 10 minutes, as well as areas you can focus on to increase your agency’s value.

Read on to see what Mark’s list of key factors driving agency valuation looks like.

1. Recurring revenue vs project revenue

In the webinar, Mark says that recurring income is more attractive to buyers than project income because it gives them more certainty about what they are buying. Ultimately, potential...