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Are Agencies Ripe For Rollups?

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In episode #2618, We delve into the question of whether agencies are ready for roll-ups, the process of acquiring and merging multiple companies in the same industry. We highlight the potential advantages for agencies, emphasizing the benefits of combining customer bases, reducing expenses, and cross-selling services. This strategic approach can result in heightened revenue, decreased churn, and elevated valuations. Despite these potential gains, we caution that agencies experiencing declining profits and harboring unrealistic expectations may encounter challenges in finding suitable buyers. Our prediction is that the market for agency roll-ups will become more favorable, particularly in early 2024.Don’t forget to help us grow by subscribing and liking on YouTube!Check out more of Eric’s content (Leveling UP YT) and Neil’s videos (Neil Patel YT) TIME-STAMPED SHOW NOTES: (00:00) Today’s topic: Are Agencies Ripe For Rollups? (00:35) Small agencies can get 3-4x EBITDA, and large agencies can get 10x+ (01:44)