HS Listing ID-67222

Business Overview
Digital marketing and creative agency

Years in Operation: 4+ years

Ownership Structure:

Owner and co-founder are majority owners

$1M investment for 20% equity from owners friend: $600K cash / $400K LOC

Reason for Sale:

Founders want to reallocate time and capital into other businesses

Seeks a clean exit to eliminate time distractions and operational pull

Operations & Team Structure
Founders’ Time Commitment: $100K ACV

Other Key Personnel:

5 total onshore staff (3 non-founder)

1 CMO (oversees all strategy and creative)

1 Customer Success Manager (potentially being phased out)

1 employee now working fully on the AI company (still paid from agency but not needed)

Financial controller in Philippines manages billing, invoicing, and cash flow

Remote Capability: Fully remote, can be operated from anywhere

Financial Systems:

Weekly P&L closes

13-week rolling cash flow forecasting

Actively reduced $40K/month in expenses for improved cash flow

Financials & Valuation
Projected Revenue: ~$2.8M

Current Adjusted EBITDA: ~$1M+ (previously ~$600K at time of highest offer)

Prior Offers:

Highest: ~$3.2M–$3.3M from a buyer at ~5.3x EBITDA

Target Sale Price: $3,950,000

Owner Add-Backs:

$300K in owner compensation

~$18K/month in expenses tied to unrelated software business

Office rent (lease ends in November and is optional going forward)

Market Position & Intangibles
Spends $30K–$50K/month in advertising

Strong brand presence; high perceived value in market

Named one of AdWeek’s Fastest Growing Agency

Extensive case studies and industry visibility

Recently approached by a major Texas agency for possible merger or acquisition

Owner believes this is a strong bolt-on acquisition for another established agency