What is the Value of Your PR Firm?
By Rick Gould CPA, J.D.
To our Clients, Colleagues and Friends,
I was recently asked to submit a column for PR News on the valuation of PR firms. The article, which ran in the August 22, 2016 issue, stems from my new book, “Doing It the Right Way: 13 Crucial Steps For a Successful PR Agency Merger Or Acquisition.”
The article focuses on four crucial things to remember before agency owners who are considering selling put a value on their firm.
Here’s a summary of the four items:
1. Contrary to popular belief, firms are not valued at a multiple of net revenues
2. Be very careful what you believe
3. The past determines the down-payment percent
4. Buyers may offer other revenue-based models
The article also features an additional list of key ingredients agency owners need to consider before making a valuation, ranging from owners’ compensation to creating a term sheet, a document that outlines the basic components of the offer.
For the full article, please click here: Four Crucial Items to Remember Before You Start Putting a Value on Your PR Firm
Gould+Partners has been consulting PR, Advertising and Digital Media agencies for increased profitability for more than 30 years. The New York-based company is a key PR industry source for profitability benchmarking statistics / insights and successful mergers & acquisitions (M&A) transactions. Gould + Partners, which gathers, and evaluates relevant statistics and insights, is uniquely qualified to advise and counsel clients on what is needed to grow and become best in class. Consulting Public Relations, Advertising and Digital Firms to a new level of success is our specialty.
Rick Gould, CPA, J.D.