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Optimizing Valuation For Acquisitions for Marketing Service Providers

  • Writer: Simon Hawk
    Simon Hawk
  • Apr 9
  • 3 min read

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In the high-stakes world of mergers and acquisitions (M&A), the key to success often lies in one word: valuation. For sellers, an optimized valuation can unlock transformative liquidity. For buyers, it ensures strategic alignment and ROI.


At Multum Domini, we specialize in driving value by revealing the often-overlooked growth levers within a business—especially in the evolving marketing services sector, where digital transformation, recurring revenue, and data-driven performance are reshaping M&A dynamics.


What Drives Higher Valuations in Marketing Services?


Unlike traditional asset-heavy industries, marketing services firms are often evaluated on intangible value: their client relationships, intellectual capital, recurring revenue models, and tech-enabled service delivery. Buyers are willing to pay premiums for:

  • Proprietary platforms or data analytics capabilities

  • High client retention and long-term contracts

  • Specialization in high-growth verticals (e.g., SaaS, healthcare, fintech)

  • Performance-based pricing models

  • Scalability and integration potential

By identifying and positioning these attributes properly, marketing firms can significantly increase their deal value.


Case Study 1:


Niche Digital Agency – $14M to $26M Valuation Lift

A fast-growing digital performance agency specializing in B2B SaaS was initially approached with a $14M acquisition offer. The firm had solid EBITDA but was undervalued due to limited geographical presence and perceived client concentration.

Multum Domini:

  • Recast revenue to highlight 80% recurring revenue from multi-year contracts.

  • Positioned the firm as a category leader in B2B SaaS with niche tech integration expertise.

  • Identified strategic buyers expanding into B2B verticals.

Result: A competitive process yielded a final sale price of $26M, a 79% increase over the original offer.


Case Study 2:


Creative Boutique – 60% Premium Through IP and Brand Equity

A creative studio known for award-winning brand campaigns in the luxury and lifestyle space was preparing for a potential acquisition. Its financials didn’t fully capture the equity of its brand or the long-term impact of its creative IP.

Multum Domini:

  • Structured a portfolio valuation based on historical campaign longevity and licensing.

  • Created a brand valuation framework highlighting market influence and top-tier client list.

  • Presented the firm as a strategic brand engine for a global agency network.

Result: The firm attracted multiple suitors and ultimately sold for 60% above the initial valuation estimate, based on both tangible revenue and intangible brand value.


Case Study 3:


Martech Firm – Valuation Jump from 5x to 9x EBITDA

A marketing technology and automation firm serving healthcare providers had developed proprietary campaign tracking tools but was operating with little focus on IP monetization.

Multum Domini:

  • Developed a product-led narrative, reframing the firm as a SaaS-enabled services company.

  • Identified scalable licensing and white-labeling opportunities.

  • Structured deal terms to include upside-based earnouts, further increasing total value.

Result: The company secured a 9x EBITDA valuation, up from an initial 5x offer—positioned as a tech-forward partner, not just a service provider.


Final Thoughts:


Narrative Drives Numbers


In the marketing services sector, valuation gains don’t always come from operational changes. They come from reframing the business: articulating its strategic position, growth potential, and hidden assets.

At Multum Domini, we specialize in helping firms tell that story—clearly, convincingly, and with results.


Let’s Maximize Your Valuation

Thinking about selling your agency or acquiring a strategic asset? Let’s uncover the value others miss. Multum Domini offers bespoke strategic advisory for marketing services firms seeking optimal outcomes in M&A.

👉 Reach out today to schedule a confidential consultation.

 
 
 

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