Most agency owners don’t wake up thinking, “Today, I’ll plan my exit.” But here’s the reality—if you don’t plan your exit, the market will decide for you.

You’ve built your agency with passion, creativity, and relentless effort. But when it comes to selling, emotions don’t drive valuation—numbers do.

When’s the Right Time to Exit?

Exit Timing Framework

🟢 Ideal Exit (Green Zone): Strong EBITDA, sustained growth, and high buyer demand.
🔴 Too Early (Red Zone): Selling before critical momentum = leaving money on the table.
🔵 Too Late (Blue Zone): Declining revenue = lower valuation. Buyers pay for future growth, not past success.

The optimal exit window is when your agency is at peak valuation. But timing alone isn’t enough. To maximize your exit, ask yourself:

✔ What’s your current valuation?
✔ How much can your valuation grow by optimizing financial, talent, and client metrics?
✔ Who are the right buyers? Many agency owners enter earn-out deals, meaning they’ll work with the buyer post-sale—choosing wisely is critical.
✔ What deal structure works best? Consider cash, stock, earn-outs, or a mix of all three

Valuation Cross-Check: Why a Single Method Is Risky

Many agency owners rely solely on EBITDA multiples—but multiples are an outcome, not a benchmark.

A strong valuation requires a multi-method approach:

✔ Discounted Cash Flow (DCF) – Future cash flow projections with risk-adjusted discount rates.
✔ Comparable Transactions – How similar agencies were priced in recent M&A deals.
✔ Capitalized Earnings Method – Measures consistent profitability over time.

Without cross-verification, valuations can be inflated or undervalued, leading to poor negotiations—or a failed deal.

Reality Check: Are You Exit-Ready?

If you’re not tracking profitability, client retention, and operational efficiency, your agency may not be exit-ready—even if it looks successful.

Book a valuation assessment with Mergify and see if you're in the exit window.