Acquisitions Anonymous - #1 for business buying, selling and operating
Is this design agency a good buy? - Acquisitions Anonymous episode 145
Nov 29, 2022
Michael Girdley and Mills Snell discuss a productized design services agency for startups. They explore the business model, customer relationship management, and the effects of the macro environment on agencies. They also touch on the unique aspects of this particular business and the negotiation strategies for acquiring it.
27:07
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Quick takeaways
- The agency specializes in providing design services for startups and has a unique pricing model based on a multiple of revenue, which can be advantageous but also presents inherent problems that need to be considered when acquiring the business.
- The current VC funding environment poses challenges for the agency's niche market targeting startups, necessitating careful evaluation of the deal structure and viability in order to mitigate potential risks.
Deep dives
Key point 1: Unique pricing model based on revenue multiple
The podcast discusses an agency that caters specifically to startups and has a unique pricing model based on a multiple of revenue. They explore the potential advantages and inherent problems with this approach.
