Over the next decade in the United States, 75M baby-boomers will retire. According to the SBA there are approximately 31M small businesses in the United States, about 40% of which are owned by members of this prolific generation. This means that over 12M small businesses will be going through a major transition over the next eight years. While many of these businesses are traditional “Main Street” operations like coffee shops, restaurants, and boutiques, many fall into the technology and technology-enabled-services sector. Most of these businesses will be too small for traditional private equity buyers, which means that there will be opportunities for large scale consolidation in the lower-market. Digital Marketing agencies represent an interesting portion of this market, and if you’re a digital marketer thinking about your retirement plan, this article is for you.

Retiring and selling a marketing agency can be a complex and challenging process, but it is also an exciting opportunity to take a new step in your career and life. Here are some key considerations to keep in mind as you plan for retiring and selling your marketing agency:

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Start planning early

It is never too early to start planning for the sale of your marketing agency. By starting early, you can ensure that your business is in the best possible position to sell and maximize the value of your sale. Start networking with younger agency owners and begin the “interview” processes by collaborating and finding ways to work together. If you’re going to sell your business to another agency, you’ll want to ensure that your clients are in good hands and that your cash flow is being managed properly.

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‍Evaluate your business  

Before you start looking for potential buyers, it is important to take a deep dive into your business and assess its strengths and weaknesses. This will help you understand what makes your business unique and valuable, and identify areas where you can improve.

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‍Develop a sales strategy

Once you have a good understanding of your business, you can start developing a sales strategy. This should include identifying potential buyers, developing a marketing plan, and preparing a sales pitch.

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Prepare your business for sale

In order to maximize the value of your sale, it is important to prepare your business for sale. This may include cleaning up your financials, updating your website and marketing materials, and making other improvements to your business.

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‍Negotiate the deal

Once you have identified a potential buyer and reached an agreement on the terms of the sale, it is important to negotiate the details of the sale. This may include the purchase price, the structure of the deal, and other important details. Oftentimes, for smaller agencies or sole proprietors, negotiating an earn-out or revenue sharing agreement with a “competitor” is a great way to ensure that your business & clients are in good hands, and that you will continue to benefit from the cash flow.

Ultimately, retiring and selling a marketing agency is a complex and challenging process, but it is also an exciting opportunity to take a new step in your career and life. By starting early, evaluating your business, developing a sales strategy, and preparing your business for sale, you can ensure that your retirement and sale are a success.

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At oakpool, we believe that there are no competitors, only potential partners.

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If you’re starting to think about the next stage of your life and your career, feel free to reach out. Our team has decades of experience in digital marketing, data science, and mergers & acquisitions that we’d love to share with you over a casual introductory call, coffee, or drink.