Sauer: Business strength drives agency multiples between 3x and 6x EBITDA
Jeff Sauer · Cash Business vs. Wealth Business: Most Founders Mix Them Up · Mar 19, 2025 · at 17:32
Jeff Sauer explains the factors that determine valuation multiples during the sale of a digital agency.
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“It's not like they just say, Hey, you're five X a beta. It's ultimately the strength of your contracts, the strength of your client list when you're acquiring an agency and those things factor into it. And then it's, you know, just taking a turn on that, that revenue that's coming in strategic team members. So that's really the thing that goes in between that three X a beta and six X a beta is actually the strength of your business.”
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