Zhang: Long-Term Contracts Create More Acquisition Value Than Monthly Retainers
Newton Zhang · 50 NDAs → 3 Offers: Why This Agency Drew Buyer Interest · Jun 23, 2026 · at 17:12
Newton Zhang discusses how contract structures impact buyer attractiveness when preparing an agency for acquisition.
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“Buyers really like recurring revenue and stability. So I think one thing I wish I knew in hindsight, if I were to kind of do this again is like, I wish I would have signed My clients onto like longer agreements instead of just like month to month, because like we did have recurring revenue but we didn't have it like in like, let's say like a 12 month contract kind of thing. You know, even though without that, you know, people still stay on for like, you know, 12 months, three years, that kind of thing. But like, if you do have those set contracts, like that definitely is like a big plus in the buyer's eyes.”
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