The Deep Specialization™️ Podcast The Evolution of Agency M&A: Why Specialists Command Higher Valuations with Todd Taskey
In this episode, Corey speaks with Todd Taskey, an investment banker with over 20 years of experience specializing in agency M&A transactions. Todd shares invaluable insights about how modern agency transactions work and why vertical specialization can lead to better valuations and opportunities.
Episode Highlights:
- Why traditional "exit and earn-out" deals are being replaced
- How vertical specialists often command more attention from buyers than generalist agencies
- The critical metrics buyers evaluate: retention rates and recurring revenue
- Why having a sales function is crucial for agency growth and valuation
- Common financial mistakes that can derail transactions
- The importance of proper financial reporting and accrual accounting
- How to prepare your agency for a future transaction
Key Insights:
- Most successful agency transactions today involve getting both cash at close and equity upside in the acquiring company
- Buyers are increasingly focused on creating an "arc of services" rather than just rolling up similar agencies
- Agencies with $1M+ EBITDA and strong vertical focus often have more strategic options
- The "fill in the blank" problem each agency needs to solve beyond just money
- Why running a "good enough" business may be holding you back
Looking to sell your agency and maximize its value but not sure where to start? This episode is a must-listen.
The resources mentioned in this episode are:
- Connect with Todd on LinkedIn: https://www.linkedin.com/in/toddtaskey
- Check out Potomac Business Capital: https://potomacbusinesscapital.com
- Listen to SecondBitePodcast: https://potomacbusinesscapital.com/podcast
- Email Todd at Todd@PotomacBusinessCapital.com
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