When it comes to selling your marketing agency, timing is everything. The absolute worst time to sell your agency is when you have to sell it—when circumstances force your hand, leaving you with no choice but to accept any deal that comes your way. On the other hand, the best time to sell your agency is when you don’t need to sell it at all. This approach not only gives you the upper hand in negotiations but also allows you to secure the best possible deal for your hard work.
The Worst Time to Sell: When You Have No Other Option
Selling your agency out of necessity often happens when life throws unexpected challenges your way. Whether it’s due to a sudden illness, the need to care for a loved one, or financial struggles, these situations put you in a position where time is not on your side. When you’re in a rush to sell, potential buyers can sense your urgency, and they may offer you less than your agency is truly worth.
Why Urgency Undermines Your Negotiating Power
- Desperation Leads to Lower Offers:
When buyers know you’re desperate to sell, they have little incentive to offer top dollar. They understand that you may not have the luxury of time to wait for a better offer, and they will likely make a lower bid, knowing you’re more likely to accept it. - Limited Time for Preparation:
Selling an agency takes time—time to get your financials in order, to present your agency in the best possible light, and to find the right buyer who sees the value in what you’ve built. When you’re forced to sell quickly, you may not have the opportunity to do these things, resulting in a less favorable outcome.
The Best Time to Sell: When You Don’t Need To
The ideal time to sell your agency is when you don’t need to sell it at all. When your agency is thriving, with the right people, processes, and profit in place, you’re in a position of strength. You can take your time, entertain multiple offers, and choose the one that truly reflects the value of what you’ve built.
Building an Agency You Don’t Want to Sell
At our firm, we advocate for building an agency that you don’t want to sell. The goal is to create a business that runs so efficiently and profitably that you’re happy to keep it in your portfolio. Here’s how we help our clients achieve that:
- Right People:
Your agency needs to be staffed with the right people—team members who are not only skilled but also aligned with your vision and values. A strong team ensures that your agency runs smoothly, even when you’re not involved in the day-to-day operations. - Right Processes:
Efficient processes are the backbone of a successful agency. By streamlining your operations, you can increase productivity, reduce costs, and deliver consistent results for your clients. This makes your agency more attractive to potential buyers, as they see a well-oiled machine rather than a business that depends heavily on your personal involvement. - Right Profit:
Profitability is key. An agency that generates significant profits and pays its owners well is far more attractive to buyers. When you’re making good money and enjoying the fruits of your labor, there’s no pressure to sell. In fact, potential buyers will need to make you a crazy good offer to even get you to consider it.
The Benefits of Selling on Your Own Terms
When you don’t need to sell, you have the luxury of time. You can wait for the perfect offer, negotiate from a position of strength, and ensure that the terms of the sale align with your long-term goals. This approach not only maximizes your financial gain but also allows you to leave the business on your terms, rather than out of necessity.
Why Buyers Will Pay a Premium
- Perceived Stability:
Buyers are willing to pay more for an agency that’s stable, profitable, and well-managed. When your agency is running smoothly and generating consistent revenue, it becomes a valuable asset that buyers are eager to acquire. - No Pressure Sales:
When you’re not in a rush to sell, you can take your time to find the right buyer—someone who shares your vision for the agency and is willing to pay what it’s worth. This often results in a higher sale price and better overall terms.
Conclusion
The best time to sell your agency is when you don’t need to sell it. By building a business with the right people, processes, and profit, you create an agency that you love running—and one that buyers will find irresistible. Remember, when you’re in control of the timing, you’re in control of the outcome..