How to sell an agency, professional firm or publication
This year I am working with owners of a regional lifestyle magazine and an influencer marketing technology company. I started in corporate finance, then bought, grew and sold a senior care business with nearly 1,000 employees.
- P&L owner of a senior care business I bought, grew and sold
- Nearly 1,000 employees employed while I owned it
- Iconic's platform a buyer database of more than 850 million profiles
Private equity is writing more checks. Buyers still pay most for people who stay and clients who renew.
Deal counts in consulting, accounting and creator marketing are near record levels. Insurance agencies and staffing firms show that not every niche moves in the same direction.
Lincoln International counted 792 deals in the twelve months ended March 2026, up from 768 a year earlier. Private equity and its portfolio companies grew their deal count 32% and now make up 48% of volume.
Sources: Lincoln International, Q2 2026 professional services market update, Focus Investment Banking, professional services industry report, Spring 2026
Capstone Partners reports 194 accounting deals in 2025, up 26%. Financial buyers made up 54.8% of deals so far in 2026. About 24 of the top 100 US CPA firms now have private equity owners.
Sources: Capstone Partners, accounting services M&A update, Jul 2026, CFO Brew, accounting enters its private equity flip era, Apr 2026
OPTIS Partners counted 695 agency deals in 2025, down from 787. Staffing Industry Analysts counted 93 staffing deals in both 2024 and 2025, led by healthcare staffing at 26%.
Sources: Insurance Journal, OPTIS Partners 2025 agency M&A count, Jan 2026, Staffing Industry Analysts, staffing M&A stayed flat in 2025, Sep 2026
Quartermast Advisors counted 81 deals, up 17.4%, with software platforms and agencies the most acquired. Print is consolidating on different terms: Hour Media bought six regional titles out of receivership for $1.6 million.
Sources: Net Influencer, Quartermast Advisors creator economy M&A report, Jan 2026, Willamette Week, Hour Media purchases Portland Monthly, Apr 2026
What a services buyer checks first.
A firm is its clients and its people. Holding companies and first time owners test both first. I prepare these files before a firm goes to market.
Client retention
How many clients stayed year over year, and how much revenue they kept spending. For insurance agencies this is the renewal retention rate on the book.
Client concentration
Revenue from your top client and top ten clients as a share of the total. One account above 15% to 20% makes buyers reach for an earn out.
Recurring revenue mix
Retainers, managed service contracts, subscriptions, renewal commissions and annual engagements versus one time projects. Recurring work earns the higher multiple.
Utilization and realization
Billable hours as a share of available hours, and how much of standard rates you actually collect. Buyers rebuild your margin from these two numbers.
Gross margin by service line
Margin on each client, campaign or contract. In staffing it is the spread between bill rate and pay rate; in an agency it is net revenue after pass through media.
Key people and agreements
Who owns each client relationship, plus employment, non solicitation and confidentiality agreements. Producers and account leads who can walk out with clients are the biggest risk.
Price drivers for firms and agencies
| What pushes your price down | What pushes your price up |
|---|---|
| Project work that has to be resold every month | Retainers, subscriptions or renewal commissions above half of revenue |
| One client above 20% of revenue | No client above 10% to 15% of revenue |
| The founder holds every key client relationship | Account leads and a second layer of management who own relationships |
| Key staff with no non solicitation agreements | Signed agreements and retention plans for the people clients know |
| Books kept on a cash basis with personal expenses mixed in | Accrual financials that tie to tax returns and clean add backs |
| Print revenue tied to a few advertisers and shrinking | Diverse advertisers plus digital, events or subscription revenue |
Consolidators, holding companies and private equity are all buying.
Private equity backed platforms lead in accounting and insurance. Agency holding companies and martech platforms lead in creator marketing. Smaller practices often sell to a local operator or an individual using an SBA loan.
| Buyer type | What they pay for | Active examples |
|---|---|---|
| Private equity backed accounting platformsFinancial | Firms that add partners, industries and advisory services to a growing network. Citrin Cooperman has made more than 30 acquisitions since 2019. | Citrin Cooperman (Blackstone), Cherry Bekaert (Parthenon Capital), Baker Tilly (Hellman & Friedman), Springline (Trinity Hunt Partners) |
| Insurance brokerage consolidatorsStrategic, PE backed | Books of business with strong retention and producers who will stay. Hub International closed 49 deals in 2025 and Inszone closed 45. | Hub International, Inszone Insurance Services, BroadStreet, World Insurance Associates, Keystone Agency Partners |
| Agency holding companies and consultanciesStrategic | Creator networks, influencer technology and specialist agencies that plug into large client relationships. | Publicis Groupe (Captiv8, Influential), Omnicom (Interpublic), Accenture Song (Whalar) |
| Martech and creator platformsStrategic, often PE backed | Software, creator marketplaces and affiliate tools that add customers and features to their product. | Later (Summit Partners), Influencer Hero, Spotlight (Stone Goff Partners) |
Recent firm, agency and media deals.
Firm, agency and publication deals announced in 2025 and 2026. Small firm sales rarely make the news, so this list points to active acquirers.
| Date | Buyer | Target | Type | Value |
|---|---|---|---|---|
| Aug 2026 | CTI Staffing | PeopleServeBoston technology staffing firm founded in 1999; combined company over 200 employees | Strategic | Undisclosed |
| Aug 2026 | Inszone Insurance Services | Harris Insurance ServicesTulsa, Oklahoma personal lines agency founded in 1925 | Strategic add on | Undisclosed |
| Jul 2026 | Influencer Hero | AfluencerCreator marketplace with more than 17,000 creators and 3,500 brands | Strategic | Undisclosed |
| Jul 2026 | The 20 | Sundance NetworksManaged IT and cybersecurity provider founded in 2003; The 20's 49th acquisition | Strategic | Undisclosed |
Show all 15 deals
| Date | Buyer | Target | Type | Value |
|---|---|---|---|---|
| Jul 2026 | Citrin Cooperman | LGAWoburn, Massachusetts accounting and advisory firm; 150 professionals | PE platform add on | Undisclosed |
| Jul 2026 | HW Staffing Solutions | TPi StaffingRegional staffing provider in New England | Strategic | Undisclosed |
| Jun 2026 | Accenture Song | WhalarCreator marketing agency; called the largest creator economy transaction by the seller | Strategic | Undisclosed |
| Mar 2026 | Hour Media | SagaCity MediaPortland Monthly, Seattle Met, Houstonia and three mountain resort titles; sold out of receivership | Distressed | $1.6M |
| Feb 2026 | Spotlight (Stone Goff Partners) | Captivate CollectiveCustomer marketing and advocacy consultancy; Spotlight's first add on | PE platform add on | Undisclosed |
| Jan 2026 | Hour Media | Salt Lake magazinePlus Utah Bride & Groom and Utah Style & Design; bought from JES Media | Strategic | Undisclosed |
| Nov 2025 | Omnicom | Interpublic GroupAll stock deal; combined revenue above $25 billion | Merger | Undisclosed (all stock) |
| Jun 2025 | Baker Tilly (Hellman & Friedman) | Moss AdamsCreated the sixth largest advisory CPA firm in the US | PE backed merger | $7B |
| May 2025 | Publicis Groupe | Captiv8Influencer platform with a network of 15 million creators in 120 countries | Strategic | About $150M (reported) |
| Feb 2025 | Hearst | Austin American Statesman154 year old Texas daily newspaper bought from Gannett | Strategic | Undisclosed |
| Jan 2025 | Later (Summit Partners) | MavelyAffiliate marketing technology platform sold by Nu Skin; about a five times return | Strategic | $250M |
What is your professional services firm worth?
Owner run practices, agencies and publications sell on SDE. Firms with a management team and earnings over about $1 million sell on adjusted EBITDA.
Illustrative only, not a valuation.
Published ranges for this industry
- Accounting, CPA and tax practices sold from 2021 to 2025: median 2.04x SDE, upper quartile 2.66x; median 1.02x revenue (BizBuySell)
- Insurance agencies sold from 2021 to 2025: median 2.70x SDE, upper quartile 3.44x; median 1.51x revenue (BizBuySell)
- Staffing agencies sold from 2021 to 2025: median 2.69x SDE, upper quartile 3.22x; median 0.51x revenue (BizBuySell)
- IT and software services businesses sold from 2021 to 2025: median 2.93x SDE, upper quartile 3.87x (BizBuySell)
Bands start from the professional services data above. Recurring revenue, client concentration, relationships and growth move them by amounts I chose. It is a first look only.
Where services owners lose money in a sale.
The same issues show up in agencies, firms and publishers. Most can be fixed with a year or two of preparation.
Letting one client grow too big
A client above 20% of revenue makes every buyer nervous. FE International notes the buyer's model breaks down near 35%.
Cost: A lower multiple or a heavier earn out
Being the rainmaker and the account lead
When every relationship runs through you, the buyer is buying your calendar. Hand key accounts to a team before you sell.
Cost: A longer transition and more of the price at risk
Skipping agreements with key staff
Producers, recruiters and account managers without non solicitation agreements can leave with clients. Buyers price that risk in.
Cost: Price cuts or holdbacks at closing
Selling project revenue as if it were recurring
Buyers check how often work repeats. Converting top clients to retainers or annual contracts earns real credit.
Cost: One to two turns of EBITDA, per FE International
Accepting an earn out without reading the math
FE International cites data showing only about a fifth of potential earn out dollars were paid. Cash at close matters most.
Cost: Price on paper that never arrives
Waiting until print revenue shrinks
Regional titles sold out of receivership go for a fraction of their past value. Selling while advertisers are loyal protects the price.
Cost: A forced sale on the buyer's terms
What agency, firm and publication owners ask me before they sell.
Who is buying professional services firms right now?
Private equity and its portfolio companies made up 48% of professional services deals in the year to March 2026, per Lincoln International. Accounting platforms like Citrin Cooperman and broker consolidators like Hub International buy steadily. Agency holding companies like Publicis buy influencer and creator businesses.
What multiple will my firm sell for?
Small firms usually sell on SDE. BizBuySell data shows medians of 2.04x for accounting practices, 2.70x for insurance agencies, 2.69x for staffing and 2.93x for IT services. Larger agencies trade on EBITDA, from 2.5x for small shops to 12x for scaled platforms, per FE International.
Is private equity really buying accounting firms?
Yes. About 24 of the top 100 US CPA firms have private equity owners. Capstone Partners counted a record 194 accounting deals in 2025, and financial buyers made up 54.8% of deals so far in 2026.
Is there still a market for a regional magazine?
Yes, but buyers are selective. Hour Media, which publishes city and regional magazines, bought Salt Lake magazine in January 2026 and six SagaCity titles in March. Titles with loyal advertisers and digital or event revenue sell from a much stronger position.
Who buys influencer marketing technology?
Agency groups, martech platforms and private equity. Publicis bought Captiv8, Later bought Mavely for $250 million, and Accenture Song agreed to buy Whalar. Quartermast Advisors counted a record 81 creator economy deals in 2025, with software platforms the most acquired.
Will I have to accept an earn out?
Often part of the price is deferred. FE International says clean agency deals pay 60% to 70% in cash at close, with 10% to 20% in an earn out. Riskier deals can drop to about 50% cash at close.
Can my firm's buyer finance it with an SBA loan?
Usually. Since June 2025, an SBA buyer of a firm or agency must bring at least 10% equity. A seller note on full standby can supply up to half of it.
What does client concentration do to my price?
It is one of the first things a buyer checks. FE International suggests no client exceed 10% to 15% of revenue before a sale. Higher concentration usually means a lower multiple, a larger earn out, or both.
Terms buyers will use
- SDE
- Firm profit plus owner pay, perks and one time costs. Agencies and practices under a few million in profit trade on it.
- Adjusted EBITDA
- Earnings before interest, taxes, depreciation and amortization, after one time items and a market salary for the work the owner does.
- Retainer
- A recurring monthly or annual fee a client pays for ongoing work, rather than one project at a time.
- Client concentration
- The share of revenue that comes from your largest client or clients.
- Utilization
- Billable hours divided by available hours for your team.
- Realization
- The share of standard billing rates you actually collect after write downs and discounts.
- Book of business
- The policies, clients and renewal commissions an insurance agency or advisor manages.
- Bill rate and pay rate spread
- In staffing, the difference between what a client pays per hour and what the worker is paid.
- Net revenue
- Agency revenue after pass through costs like paid media and production, the base buyers use for margins.
- Earn out
- Part of the price paid later, only if the business hits agreed revenue or profit targets after closing.
- Platform
- The first firm a private equity sponsor buys in a niche, used to buy more firms.
- Add on
- A smaller firm bought by a platform to add clients, locations or services.
- Non solicitation agreement
- A contract that limits former staff from taking clients or coworkers after they leave.
- Quality of earnings (QoE)
- An outside accounting review that tests whether professional services earnings and add backs hold up.
Own a professional, financial or business services firm? Schedule a complimentary call with Max!
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Sources (32)
- Lincoln International, Q2 2026 professional services market update
- Focus Investment Banking, professional services industry report, Spring 2026
- Capstone Partners, accounting services M&A update, Jul 2026
- CFO Brew, accounting enters its private equity flip era, Apr 2026
- Insurance Journal, OPTIS Partners 2025 agency M&A count, Jan 2026
- Staffing Industry Analysts, staffing M&A stayed flat in 2025, Sep 2026
- Net Influencer, Quartermast Advisors creator economy M&A report, Jan 2026
- Willamette Week, Hour Media purchases Portland Monthly, Apr 2026
- MediaPost, Hour Media acquires SagaCity Media, Apr 2026
- Influencer Marketing Hub, Influencer Marketing Benchmark Report 2026
- BizBuySell, accounting, CPA and tax practice valuation benchmarks
- BizBuySell, insurance agency valuation benchmarks
- BizBuySell, staffing agency valuation benchmarks
- BizBuySell, IT and software services valuation benchmarks
- BizBuySell, magazine and newspaper valuation benchmarks
- FE International, agency valuation multiples in 2026, Oct 2026
- Live Oak Bank, SBA SOP 50 10 8 changes, effective Jun 2025
- Staffing Industry Analysts, CTI Staffing acquires PeopleServe, Sep 2026
- Coverager, Inszone reaches No. 22 following acquisition push, Aug 2026
- SaaSRise, Influencer Hero acquires Afluencer, Jul 2026
- ChannelE2E, The 20 MSP acquires Sundance Networks, Jul 2026
- CPA Practice Advisor, Citrin Cooperman acquires LGA, Jul 2026
- Staffing Industry Analysts, HW Staffing Solutions acquires TPi Staffing, Jul 2026
- Adweek, Accenture Song will buy Whalar, Jun 2026
- Business Wire, Spotlight acquires Captivate Collective, Feb 2026
- Salt Lake magazine, Hour Media acquires Salt Lake magazine, Jan 2026
- Omnicom, completion of the Interpublic acquisition, Nov 2025
- Latham & Watkins, Baker Tilly and Moss Adams $7 billion merger, Jun 2025
- Marketing Dive, Publicis acquires Captiv8, May 2025
- Nieman Lab, Hearst to buy the Austin American Statesman, Feb 2025
- Business Wire, Nu Skin sells Mavely to Later for $250 million, Jan 2025
- Iconic, iconic.co (firm figures as published)
Selling in a different industry? See every industry I work in.
