Valuing PR agencies is a complex process. It takes financial expertise, knowledge of the M&A marketplace and an understanding of how buyers create offers/term sheets. Term Sheets presented by buyers to sellers for the acquisition of the seller firm are customized based on several factors. “Recasted” Operating Profit for the past three full years plus…
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Category: Business Valuations
Psychological Buy-in Critical for Exit Strategy
Amid the dramatic and ongoing changes within the marketing communications industries is the accelerating rate of M&A transactions within the PR field. PR firm owners, including heads of boutiques, smaller shops and mid-size firms, are giving more serious consideration to selling. Many of these owners are products of the baby-boom generation and would like to…
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Valuing Your PR Firm ‘As If’ It Were Your Home
Your home has been good to you. You have invested a chunk of money into sprucing it up throughout the years and the work has paid off nicely. You are ready to sell. As you brace for a sale you remember that tiny crack in the wall near your bedroom and some chips scattering the…
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The Value of Business Valuations
In the current business climate agency owners and top managers must prioritize like nobody’s business. And the top priority in a hypercompetitive marketplace is making sure your firm’s valuation is at a maximum. As the brand creates goodwill, goodwill creates value. But how many agency owners know the inherent value of their pr firm? There…
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Staying Profitable in the New Economy
Should PR firms remain independent and grow organically? Should PR firms remain independent and grow via acquisition? Or, is the firm in growth gridlock, where getting to the next level is proving problematic? In that case, some firms choose to put themselves in play altogether and sell. These are just a few of the key…
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3 Tips for PR Agencies to Recession Proof Their Business
The global economy can be quite precarious, which PR agencies know all too well. In a robust economy, brands and organizations are eager to invest in PR and marketing agencies. However, the slightest blip on a corporate spreadsheet and brands will likely curtail those budgets. But a full-blown recession is a double-whammy. Agencies not only…
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PR Agencies Through the Looking Glass
Similar to the nonsensical literary theme found in the 1871 sequel to Alice’s Adventures in Wonderland, the direction of the current economic landscape is quite distorted. It is only after completing Lewis Carroll’s Through the Looking Glass that the reader can make sense of the varied themes and plot devices. Unfortunately, people working in the…
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Practice ‘Design Thinking’ Now to Avoid Employee Burnout Later
Sure, senior denizens of the PR and ad agency sectors are cocktail-party compliant when it comes to kibitzing about all the work bearing down on the firm and describing how they fear that their most valuable employees may burnout. Then they go back to the shop the next morning and continue assigning too much work…
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Top 8 Reasons to Get a PR Agency Valuation
PR agency valuations provide a detailed analysis of financials, profitability, clients, employees, resources and a number of other important factors that influence the value of your firm. Though they can be time consuming and hiring a qualified outside organization to perform the valuation can be an additional expense for your firm, PR business valuations are…
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Are PR Agency Valuations Worth the Time and Money? Absolutely!!
Agency valuations can take time and are an additional cost for firms trying to maintain or increase profitability. So are PR agency valuations really worth the time and money that must be invested in them? The answer is YES. Agency valuations are incredibly valuable and useful for PR firms for a variety of reasons. Whether…
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