Business Overview

This turn-key digital marketing agency for sale in the Midwest is an award-winning advertising agency with a focus on online advertising. Approximately 90% of the revenue is recurring through online marketing campaign buys using social media and paid search. The remaining revenue is generated through traditional advertising methods such as print and direct mail. Employees work directly with small business owners and marketing directors in a variety of industries including financial institutions, contractors, service industry businesses, IT companies, and e-commerce businesses.

Financial

  • Asking Price: $420,000
  • Cash Flow: $154,024
  • Gross Revenue: $654,539
  • EBITDA: N/A
  • FF&E: $1,550
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2007

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Employees work remotely from home.

Is Support & Training Included:

As Required.

Purpose For Selling:

Pursue other business interests.

Pros and Cons:

This business has curated a culture of communication and collaboration with their clients. This strategy of working as an extended member of their client’s marketing team to get results has earned them great loyalty and trust in an industry that is known for frequent client moves.

Opportunities and Growth:

Global digital advertising is forecasted to experience 14% growth in 2022, 9% in 2023 and 10% in 2024. Social media will be the fastest-growing channel between 2021 and 2024 with an annual growth rate of 14.8%. This business can continue to grow with a new owner due to the proven systems and methodology established for getting results.

Additional Info

The company was started in 2007, making the business 15 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell operating businesses. Nonetheless, the true reason vs the one they say to you may be 2 absolutely different things. For instance, they may claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competition, current decrease in revenues, or a variety of other factors. This is why it is very vital that you not count entirely on a seller's word, yet instead, make use of the seller's answer combined with your overall due diligence. This will repaint a more sensible image of the business's present scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies take out loans so as to cover things like supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that revenue margins are too thin. Numerous organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in brand-new consumers? Often times, companies have repeat clients, which create the core of their day-to-day profits. Particular aspects such as new competition sprouting up around the location, road building, as well as employee turnover can impact repeat customers as well as adversely affect future profits. One important point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business often, the better the possibility to build a returning client base. A final thought is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Just how might the local median household income influence future revenue potential?