8 elements Jason looks for when buying an agency

Here are the eight key factors Jason prioritizes when assessing an agency for acquisition. Over the past few years, they’ve successfully acquired 10 agencies, and these factors have been integral to every decision. Whether you’re planning to sell your agency in the future or simply aiming to grow your business, understanding these elements is essential.

Like many of you, Jason became an agency owner by accident. It all started in 1999 when a friend of his, who resembled Justin Timberlake from NSYNC, inspired him to create a parody band with a fake website called N'SHIT. To him surprise, it went viral. Over the next 12 years, that quirky project evolved into a thriving agency, growing to over 100 employees and generating eight-figure revenue before they eventually sold it. After that chapter, Jason unintentionally found himself in this business once again, this time by interviewing some of my former competitors.

That marked the beginning of the Smart Agency Masterclass, a podcast he has been hosting for the past decade, interviewing incredible agency owners from around the globe. Furthermore, they have developed the next agency they launched about three years ago to just over $30 million in top-line revenue, excluding media spend.

The final element is that they want audited financials. Too many owners believe their business is worth significantly more than it actually is. However, if you were to audit your financials, you might find yourself surprised, realizing that they have 10% margins instead of the 30% margins you had thought.

And so, every year or every quarter, having someone thoroughly audit your financials, as if you are planning to sell, will give you a clear understanding of your position. It’s similar to weighing yourself daily if you’re trying to lose weight. However, if you only weigh yourself once a year, you might think, ‘Oh dear, I could have made so many more informed decisions during that time.’

The final point is this: What should you be asking yourself? If someone were to buy your agency today, what would you change tomorrow? You are well aware of all the skeletons in your closet. So, what would you alter tomorrow? Additionally, if you’re seeking more free advanced training, including videos and downloadable resources, just visit AgencyMastery360.com where they offer a plethora of free resources for you.