Advertising Agency Valuations
Advertising is vital for businesses, events, radio and television programs, etc… Without it, these entities would have very low consumer engagement. As such, there is a steady demand for advertising agencies in the United States. According to IBIS World, this industry generates over $14 billion in annual revenue. This is ideal if you own an advertising agency. If you are preparing to buy, expand, or sell an advertising agency, it is critical to receive an advertising agency valuation. Obtaining a business valuation for an advertising agency can help you secure favorable outcomes with your business.
As a business appraiser, Peak Business Valuation frequently values advertising agencies. In this article, we discuss how to value an advertising agency. We have linked several headings throughout the article to similar references. Click these links to learn more about valuing an advertising agency!
Peak Business Valuation works with many who are looking to buy, expand, or sell advertising agencies. We are happy to provide you with an advertising agency valuation. In addition, Peak can answer any inquiries you have on how to value an advertising agency. Start today by scheduling your free consultation with Peak Business Valuation below!
Valuing an Advertising Agency
When performing an advertising agency appraisal, valuation experts consider several factors. First, they analyze financial records to gather vital financial data. Then, the valuation analyst can determine the best valuation method for an advertising agency. Common valuation methods include the market approach, income approach, and asset approach. At Peak, our business appraisers often use the market approach for valuing an advertising agency. We highlight the market approach in the following section. It uses advertising agency valuation multiples.
This process helps business appraisers calculate the fair market value of an advertising agency. You will receive a valuation report as part of an advertising agency valuation. This report highlights the advertising agency’s fair market value, strengths, and weaknesses. You can use this information to increase the value of an advertising agency. If you have any questions on how to value an advertising agency, schedule a free consultation with Peak Business Valuation!
Valuation Multiples for an Advertising Agency
When valuing an advertising agency with the market approach, advertising agency valuation multiples are critical. Advertising agency valuation multiples are ratios that measure a business’s value in relation to its financial performance. Valuation analysts use advertising agency multiples to compare similar agencies on the open market. They determine the most applicable multiples for an advertising agency as part of the valuation process. Some common valuation multiples for advertising agencies are SDE multiples, EBITDA multiples, and REV multiples. Check out Valuation Multiples for an Advertising Agency to learn more about advertising agency valuation multiples.
Value Drivers for an Advertising Agency
Next, a business appraiser conducts a value driver assessment. Value drivers are any factors that have a major effect on the value and performance of an advertising agency. Learning about the key value drivers for an advertising agency can help you understand the next steps in increasing the value of an advertising agency.
Having strong project management is a very important value driver for advertising agencies. By providing fast and effective advertising services, you can attract more clients and drive sales revenue. Another value driver for advertising agencies is having diverse revenue streams and differentiation. Offering various advertising services can increase the demand for your business and set your advertising agency apart from competitors.
As part of the value driver assessment, business appraisers compare your advertising agency’s performance to competitors. This helps business owners understand the strengths and weaknesses of their advertising agency. See Value Drivers for an Advertising Agency.
How to Value an Advertising Agency
Business appraisers may use many common business valuation methods when valuing an advertising agency. At Peak, our valuation experts typically use the market approach and/or the income approach. The market approach measures the fair market value of an advertising agency by comparing similar businesses on the market. This method also uses advertising agency valuation multiples to understand the financial performance of the agency. In contrast, the income approach considers the income potential and risks of an advertising agency. Valuation experts may use a combination of these valuation approaches to value an advertising agency. Check out How to Value an Advertising Agency for more information.
Business Valuation for Buying an Advertising Agency
There are many benefits to purchasing an advertising agency. If you are buying an advertising agency, a business valuation is important. The advertising agency valuation report can help buyers negotiate a fair price for buying an advertising agency. Additionally, an advertising agency appraisal can help you understand how to increase an advertising agency’s value after the transaction.
Peak Business Valuation, business appraiser, regularly works with individuals who are buying an advertising agency. We are happy to provide you with a business valuation for an advertising agency! Get started today by scheduling your free consultation with Peak Business Valuation!
Business Valuation for Selling an Advertising Agency
Business valuations are also useful if you are preparing to sell an advertising agency. With the advertising agency valuation report, you can determine a fair listing price. In addition, valuation analysts reveal the strengths, weaknesses, risks, and opportunities of an advertising agency during a business valuation. This information can help you take steps to increase the value of an advertising agency before selling.
Gift and Estate Valuation for an Advertising Agency
If your advertising agency is part of your estate or if you want to gift your agency to family members, it is critical to obtain a gift and estate valuation. As part of a gift and estate valuation for an advertising agency, valuation analysts provide useful insights for maximizing tax benefits and preparing for tax liability. If you have any questions about advertising agency valuations, schedule a consultation with Peak Business Valuation!
SBA Financing for an Advertising Agency
Finally, starting, growing, or buying an advertising agency can be financially challenging. If you are seeking financing for an advertising agency, the Small Business Administration offers several loan programs for advertising agencies. SBA loans offer low down payments, low interest rates, and long repayment terms. Additionally, SBA loans for advertising agencies are guaranteed by the Small Business Administration. As such, SBA lenders are more willing to approve the loan to applicants who meet basic requirements. Peak Business Valuation frequently helps with valuing an advertising agency for SBA financing.
To learn more, see SBA Loans for an Advertising Agency!
Peak Business Valuation works with over 90 SBA lenders across the United States. We can connect you with an experienced advertising agency SBA lender. Peak Business Valuation can also provide you with an advertising agency valuation. If you have any questions about how to value an advertising agency, schedule a free consultation with Peak Business Valuation today
