How an Agency Went $0 to $15 Million in Under One Year

<p>Looking for a creative way to rapidly grow your agency? Wondering how to structure an agency acquisition without getting screwed on the other side? Whether you want to <a href= "https://jasonswenk.com/acquisition-growth-strategy/" target= "_blank" rel="noopener">grow your agency through acquisition</a> or are considering selling to lessen your risk liability, acquisition is one of the best strategies. And that’s exactly how one agency soared to $15 Million in under one year.</p> <p>In this episode, we’ll cover:</p> <ul> <li>3 myths about agency acquisition.</li> <li>What motivates an agency owner to sell?</li> <li>7 criteria of a good agency acquisition.</li> <li>How to avoid getting burned on an earnout.</li> <li>How to structure the best agency acquisition.</li> </ul> <p>On today’s show, you’ll get to hear from one of my business partners, Thomas LeMaguer CEO of Republics which is the agency we started about 10 months ago. The goal of the agency is to be the leading platform for growth as a service. In that short time, we’ve worked to rapidly grow the agency to $15 million through acquisition. He’s here to talk about how you can grow your agency through acquisitions, or set yourself up for a fair and profitable <a href="https://jasonswenk.activehosted.com/f/1" target="_blank" rel="noopener">sale of your own agency</a>.</p> <h2>3 Myths About Agency Acquisitions</h2> <p><strong>1. You Need a Ton of Cash to Buy Another Agency</strong></p> <p>Nope! Thomas says you don’t need money in order to buy another business, you just need some creativity. Also, banks are more willing to loan money to agencies that are in the $1 Million to $5 Million EBITDA range. Bigger agencies with higher EBITDA are a riskier investment for them because often those businesses are too reliant on their owner.</p> <p><strong>2. Small Agencies Cannot Afford to Buy a Bigger Agency</strong></p> <p>Not true! As Thomas put it, a minnow can swallow the whale. The whale is easier because it’s stronger. Again, this is where creativity comes into pl