Why Renegotiation Fails and You Sometimes Must Quit Clients

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How would you go about making acquisitions to accelerate your growth? Would you buy for revenue, culture fit, or client roster? Would you be willing to fire big clients that are holding your agency back? Most agency owners chase growth by saying "yes" to everything, from new services, new clients, and every new opportunity. Today's featured guest built one of the fastest-growing mobile and digital agencies in the world by narrow focusing, firing bad-fit clients, and mastering the art of strategic acquisitions. Today he'll unpack how his agency evolved from a small mobile startup in Tel Aviv to a global digital powerhouse working with brands like Google, Uber, Samsung, and Microsoft.

Gilad Bechar is the CEO and founder of Moburst, a mobile-first marketing and digital transformation agency with offices in Tel Aviv, New York, and San Francisco. Since 2013, Moburst has helped startups and Fortune 500s alike scale their reach through creative, data-driven, and tech-forward strategies.

Under Gilad's leadership, the agency has raised capital, acquired multiple specialized firms, and built proprietary technology that keeps them ahead of the curve in AI, mobile UX, and cross-platform performance.

In this episode, we'll discuss:

• The similarities between the mobile boom and the new AI era.

• Raising capital without losing control.

• Using acquisitions as a growth strategy.

• The power of saying no and focusing on fit.

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From A Mobile-First Niche Focus to Global Agency Powerhouse

When Moburst launched in 2013, the agency world was flooded with "digital experts" who claimed to understand mobile. Most didn't. Gilad noticed that agencies were simply repurposing desktop experiences for smaller screens without real mobile UX thinking, no data-driven optimization, and definitely no understanding of how users behaved differently on apps.

That insight became Moburst's edge. Instead of trying to compete as another full-service digital shop, they doubled down on mobile-first marketing. They mastered app store optimization (ASO), performance tracking, and mobile UX design. That focus helped them land early wins with major clients who were desperate for expertise in a fast-changing environment.

As Gilad puts it, "When you show big clients that a critical piece of their marketing is being ignored, and you can fix it, that's your entry point."

The AI Parallel: Most Agencies Talk, Few Deliver

Gilad sees history repeating itself with AI. Just like the early mobile days, everyone's suddenly an "AI expert." But the difference between hype and real expertise shows up fast in a conversation.

He believes the proof lies under the hood. Real experts can answer deep implementation questions: which tools integrate best, how to handle data security, and what AI models perform for specific tasks. Pretenders can't.

For agencies, this is a reminder that credibility is earned through insight, not jargon. Clients see through the buzzwords. And the ones who don't will eventually learn when the work doesn't deliver.

Raising Capital Without Losing Control

Unlike most agency founders, Gilad took venture funding, not once, but three times. But he did it differently.

Instead of giving away huge equity chunks, Moburst only diluted small percentages (around 6% each round). The investors came to them after seeing how fast their clients were growing.

Without that, his agency wouldn't have its current success in the US market and would probably still be a very local agency in Israel. That capital gave him the means to hire a team in New York and then eventually move there to lead that office.

It was the start of many new opportunities for the agency, like building internal tech tools that set them apart. It was also the way his team has stayed ahead of the curve from competitors that are not investing in the future and stay too focused on the right here and now.

Furthermore, despite having 11 investors, Moburst kept full control. Only one board seat represents all investors, and it can't override the founders' decisions.

According to Gilad, that control is what allowed them to make hard but smart moves, like firing clients and cutting costs in 2017 when growth was strong but profitability wasn't.

The Hard Reset That Saved the Agency and Restored Profitability

In 2017, Moburst was scaling fast but losing money just as quickly. The agency was adding clients and headcount, but without the right systems to manage profitability.

At one point, they were bleeding up to $70,000 a month. So Gilad made the tough call: he cut unprofitable clients, reduced staff, and rebuilt the agency around systems that supported healthy margins.

"It was brutal," he admits. "We let go of big, well-known clients we loved working with. But it didn't make sense to keep losing money just to say we worked with them."

That painful reset worked. By 2018, the agency was profitable again and positioned for sustainable growth. That reset set the stage for their next evolution: acquisitions.

How to Use Acquisitions as a Growth Strategy (Not a Gamble)

Moburst's acquisition strategy wasn't about buying revenue or chasing vanity growth. It was about buying capabilities that solved their biggest operational gaps.

Their first acquisition was a video production studio they had already worked with for over a year. The partnership was strong, the culture aligned, and the collaboration was smooth. So they brought them in-house in 2019 and the agency's offerings instantly expanded.

Then they looked at their next biggest outsourced expense: web and app development. So in 2022, they acquired a dev shop after a successful collaboration period.

In total, Moburst has made five acquisitions, each one following a simple rule: test first, integrate later. As Gilad says, "We don't buy to solve problems. We buy what already works and multiply it."

When asked about whether or not these brands keep their names after acquisition, Gilad says it all depends on their brand authority. If they do great work and have a solid team but their brand isn't as strong, then it's best to just bring it under the Moburst umbrella.

In case they do have a strong brand, then they'll just make sure their website reflects they are part of a larger group.

How to Structure an Agency Acquisition Deal the Smart Way

For agency owners eyeing their own M&A moves, Gilad shared his preferred deal structure. Each acquisition has four key components:

• Cash upfront - Rewards founders for their hard work.

• Equity - Gives them a stake in the larger vision.

• Dividends - Paid yearly so they benefit from the agency's profits.

• Performance bonuses - Tied to the profitability of their specific business unit.

This structure keeps founders motivated and aligned for years to come, without the traditional burnout that comes from rigid earnouts. Everyone wins when growth is sustainable and collaborative.

Why Firing Bad Clients Helps Scale Smarter

One of the biggest lessons Gilad takes away from journey is the courage to say no: to clients, deals, or directions that don't fit.

Agencies often cling to bad accounts out of fear of losing revenue, but simply put, that's a silent killer. If you're not profitable on a client, you're not just breaking even; you're paying for the privilege of overworking your team.

Moburst's growth didn't come from doing more — it came from doing what mattered most. By focusing, pruning, and strategically acquiring, Gilad turned a niche mobile startup into a global digital powerhouse.

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