What Makes an Agency Valuable Today?

Selling an agency is a once-in-a-lifetime moment for most founders. Whether you’re exploring a third-party sale, a Management Buyout (MBO), or an Employee Ownership Trust (EOT), understanding what drives value has never been more important. The agency landscape has moved quickly, shaped by shifting buyer expectations, private equity influence and the increasing role of tech and AI.

At Wow, we combine our 12 Levers of Value, our BenchPress insights and hands-on experience supporting ambitious founders to help agencies build stronger, more valuable businesses long before a transaction begins.

Here’s our take on the current market, and what’s really influencing valuations today.

The market right now: cautious but increasingly optimistic

The last couple of years have seen a slowdown in deal volumes. Economic uncertainty and higher interest rates meant many buyers either paused or took longer to complete. At the same time, more agency founders than ever became focused on building something worth selling.

BenchPress shows that nearly half of £1m+ agency founders say building a saleable asset is their number one priority right now. That’s a big shift. Founders are thinking about exit earlier, with clearer intent.

But this created an interesting tension:

• Deal volumes were falling
  
  
• The desire to sell was rising sharply

As a result, many founders have looked at alternative exit routes, especially where a traditional trade sale felt harder to predict.

Over the last 18 to 24 months, we’ve seen heightened interest in:

Management Buyouts (MBOs)
A route that lets founders realise value while keeping the agency independent, and gives senior leaders the opportunity to step up.

Employee Ownership Trusts (EOTs)
Attractive for founders wanting cultural continuity and a tax-efficient structure. EOTs became especially relevant when trade buyers became quieter.

Now, with market sentiment improving, agencies are entering a more balanced phase. Founders are preparing well, strengthening their fundamentals and keeping every route open so they can move when the timing is right.

Valuation multiples: what agencies can realistically expect

There’s no single multiple that applies to every agency. Positioning, profit, risk and scale all influence the outcome. That said, for most founder-led UK agencies turning over £1m+, some consistent ranges have emerged.

Typical range for full-service or multi-disciplinary agencies

3x to 5x EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation)
Assuming steady performance across the 12 levers: good clients, predictable revenue, healthy profit and a capable team.

Higher range for agencies with strong differentiation

5x to 7x
Sometimes stretching to 6x to 8x
This reflects clear niche positioning, consistent growth, leadership beyond the founder and strong value levers.

Upper range for standout cases

8x and above
Often larger or highly specialised agencies, usually with tech enablement, data capability, proprietary IP or an exceptionally strong strategic appeal to a specific buyer.

For most £1m+ agencies, the ceiling typically sits in the 6x to 8x zone unless there’s something truly exceptional creating scarcity value.

The 12 Levers of Value: how buyers assess your agency

Our 12 Levers of Value give founders a practical, structured way to understand what buyers prioritise. These levers also provide the blueprint for increasing valuation multiples in the years leading up to an exit. The levers are as follows:

1. Profit: The foundation of your valuation. Aim for 20% operating profit (after paying yourself fairly) and 50% gross profit.
   
   
2. Niche: Agencies with a clear niche are twice as likely to hit 20% profit. Focus on who you serve and what you do best.
   
   
3. Expertise & Processes: Buyers invest in strong teams and solid processes backed up by a reliable tech stack and a thoughtful approach to AI. They'll want to see how you are using AI and automation to strengthen delivery, improve quality and increase efficiency. They'll also want confidence in how you’ll stay competitive as technology evolves.
   
   
4. Intellectual Property & Brand: Frameworks, tools, and processes you own, along with your brand’s reputation, make your agency more scalable and valuable.
   
   
5. Size: Scale smartly. Consistent, profitable growth (not just headcount) attracts higher multiples.
   
   
6. Management Team & Internal Culture: The less your agency relies on you personally, the more valuable it becomes. Buyers are attracted to businesses that already have a great workplace culture.
   
   
7. Recurring Revenue: Predictability equals profit. Aim for 60–80% of income from retainers.
   
   
8. Strategic Fit: Be the “missing piece” a buyer needs. Alignment with their goals can significantly raise your valuation.
   
   
9. Track Record & Trajectory: Steady, profitable growth beats one-off spikes. Consistency builds confidence.
   
   
10. Client Base: A diverse, high-quality portfolio with loyal clients shows strength and stability.
    
    
11. Client Risk: No single client should represent more than 20% of revenue. Spread risk to strengthen resilience.
    
    
12. Earn-Out Period: The more your agency runs without you, the shorter (and more optional) your earn-out can be.

Want to learn more about the 12 levers? Sign up for our 12-part email mini series here. 

How agencies move between valuation bands

Agencies don’t leap between valuation tiers overnight. Movement happens when a combination of levers is strengthened at the same time.

For agencies in the lower to mid range, shifts usually come from tightening the financial engine, improving predictability and strengthening internal structure. As agencies climb higher, differentiation, leadership depth and strategic appeal play a much bigger role.

To reach the top bands, buyers generally need to see something genuinely compelling: specialism, scale, technology, brand strength or a clear strategic advantage.

Every agency’s path is different, which is why we use the 12 Levers of Value to identify the biggest opportunities. Some levers require operational changes, others are strategic, and some relate directly to the founder’s role. When the right combination aligns, valuation multiples naturally strengthen.

What this means for agency founders

If you’re thinking about an exit in the next two to five years, the most valuable steps you can take now are:

• Strengthen profitability and cash discipline
  
  
• Increase recurring revenue
  
  
• Reduce reliance on the founder
  
  
• Build clear differentiation
  
  
• Diversify the client base
  
  
• Develop a practical AI and tech-enabled operating model
  
  

These are the foundations that make an agency more attractive, more resilient and ultimately more valuable.

Where Wow supports you

We partner with founders through the entire exit journey, including:

• Valuations and benchmarking
  
  
• Value growth planning
  
  
• Exit route design across trade sale, MBO and EOT
  
  
• Tax and deal structure planning
  
  
• Preparation for buyer scrutiny
  
  
• Support throughout transaction execution
  
  

If you’d like help understanding your agency’s valuation today, or building value over the next few years, we’d love to talk. Get in touch via the link below.