Unlock the True Value of Your Business
Palmer specializes in providing comprehensive and accurate business valuation services tailored to meet the unique needs of digital entrepreneurs. Whether you’re considering selling your business, buying a business or simply want to gain insight into the value of your business, our team is here to help!
- Expertise: The Palmer team has valued over 200 businesses in the digital space in the last 2 years, and helped facilitate the sale and purchase of 100+ unique agencies.
- Customized Approach: We recognize that every business is special, especially in the digital world. That's why we take a tailored approach to each valuation, considering qualitative, quantitative, transaction goals, and market comparables to provide the most accurate information available in the market.
- Comprehensive Services: From initial consultation to the delivery of detailed valuation reports, we offer a comprehensive suite of services designed to meet your needs at every stage of the valuation process.
- Transparency: We believe in transparent communication and strive to keep our clients informed and engaged throughout the valuation process. You can trust us to provide clear explanations and guidance every step of the way.
- Confidentiality: We understand the sensitive nature of business valuation and treat all client information with the utmost confidentiality and discretion.
How is My Agency Valued?
In the marketing world, a business is valued by applying a multiple to your company’s Adjusted EBITDA. It is crucial to determine your Adjusted EBITDA, and accurately represent the true profitability a future owner could expect to receive post-transaction. For example, any personal costs, non-recurring expenses, or salary adjustments can create a significant delta between your net income and Adjusted EBITDA. Once your true Adjusted EBITDA is determined, a market standard multiple is applied. The more profitable your business is, the larger the multiple will be. Take a look at the multiples we’re seeing in the market below!
- Adjusted EBITDA < $1M can expect a 2x-4x multiple
- Adjusted EBITDA between $1M-$2M can expect a 3x-5x multiple
- Adjusted EBITDA between > $3M-$5M can expect a 5x-7x multiple
- Adjusted EBITDA between > $5M can expect a 7x-10x multiple
Yes the numbers drive the valuation, but they aren’t everything! Where your business falls in the multiple range is governed by the qualitative factors outside of your financial statements. These qualitative factors include:
- Revenue Source
- Specialization (Services & Industry)
- Client Breakdown
- Quality of Clients
- Team & Founder Involvement
- Business Devleopment Process
- Brand Recognition
- Growth Potential
- Transition Process
Valuation Process
Schedule a Call and Meet the Team!
Meet with the Palmer team via Zoom to learn more about your agency, explore acquisition process & timeline, and gain a deeper understanding of our services & expertise.
Sign Valuation Agreement
Once you're ready to get started with the Palmer Valuation Process, we'll send over an agreement for you to sign. We get right to work!
Schedule a Kickoff Call
We'll find time to connect with you to discuss the Valuation Process. This is an opportunity for the Palmer team to learn all the ins and outs about your agency - especially the details beyond your digital presence. It's important to have al necessary information about your agency in order to provide an accurate valuation.
Qualitative Analysis
Following the kickoff call with the Palmer team, we'll begin the Qualitative Analysis. We will dive into the intangible aspects of your agency that are equally as important as the financials in the marketing services space. Team, clients, sales process - we'll look at it all!
Quantitative Analysis
Once the Qualitative Analysis is complete, we'll begin the Quantitative Analysis. The Palmer team will uncover financial details and utilize market comparables to determine the true value of your agency. The Financial Summary & Valuation is the same document we complete if you choose to go to Market.
EBITDA Adjustments
Now we get into the fun part! Once we have a better understanding of the financials of your agency, we want to determine the true profitability of your business from a Buyer's prospective. This means we need to determine which expenses are discretionary in nature, non-recurring on a pro-forma basis and salary adjustments. We can add these expenses to your Net Profit to create your agency's Adjusted EBITDA.
Review Call
The Palmer team will find a time to connect and review your agency's valuation - inclusive of our Qualitative & Quantitative Analysis.
Final Deliverables
Once the Review Call is complete, we'll send your over Palmer's Final Deliverables. You'll receive the Qualitative Analysis and the Full Financial Summary & Valuation.
Palmer IS
Ready for your success
FAQs
We’ll begin by requesting the initial information we’ll need for the valuation prior to starting the process. Once we have received the financials from your team, it takes us about 5-7 business days to complete!
It’s never too early to receive a valuation of your agency! Some people use it simply as a pulse check to understand the current value of their business and identify areas for improvement. Others use it as a stepping stone to go to market. Valuations can provide valuable insights and help you make informed decisions about the future of your agency.
We’ll provide a Valuation Checklist that consists of financial statements and intangible factors of your agency that gives us a better understanding of the state of your business.
At the completion of the valuation process you’ll receive a full financial summary & valuation report, along with a detailed valuation scorecard. These deliverables provide a clear and accurate assessment of your agency’s worth and key financial metrics.
If you’re ready to start the valuation process, schedule a time to chat with us and complete our Valuation Agreement. Once the agreement is signed, we’ll schedule a kickoff call to dive into the details of your agency. This initial discussion will help us gather all necessary information for an accurate valuation.