Business valuations are not just for public relations agencies considering a sale or merger. In fact, there are a number of reasons to get a PR firm valuation – ranging from profitability maximization to partner buyouts and estate planning – and the valuation process is extremely insightful and beneficial for agencies in all stages of the business lifecycle.
The valuation process for PR agencies is also highly complex. It requires both financial and industry expertise, and should only be performed by an experienced and respected valuation expert. For agencies considering a PR firm valuation, our step-by-step guide details how to find a qualified valuation professional, as well as what to expect and how to prepare for the PR firm valuation process.
How to Start the PR Firm Valuation Process
The first step in determining your PR firm’s valuation is to find a qualified valuation professional.
- Research Valuation Firms. Perform internet searches, and reach out to your law firm, CPA firm or colleagues for referrals.
- Interview Valuation Professionals. Ask for education credentials, including seminars and courses they are taking or teaching, and confirm that they have public relations industry expertise.
- Request an Estimate & Timeline. Get a detailed breakdown of the firm’s valuation fees, and find out how long it will take to get the valuation report.
- Read Reviews. Visit the firm’s website, read online reviews, and check the valuation professional’s LinkedIn profile.
- Speak with References. If you want additional validation, ask the firm to provide references and consider the following questions:
- Was there value in the services provided?
- Was the valuation done in a timely fashion?
- Did you receive high quality service?
- Was the final cost in line with the quote?
- Do you believe the person doing the valuation was an ‘expert’ in financial management of PR firms and doing valuations?
How to Prepare for the PR Firm Valuation Process
You’ll need to provide your valuation professional with financial documentation, including your income statements, balance sheets, and cash flow statements, as well as any marketing materials and website details. You’ll also need to share information about your key team members and staff qualifications, and include a client list with details about your key accounts.
What to Expect During the PR Firm Valuation Process
At Gould+Partners, we start with a 90-minute video meeting with your PR firm’s principles to discuss your business and valuation goals. We’ll ask you to provide the necessary financial documentation and operational information, and then we begin the extensive analysis process using relevant and proven valuation methodologies. Our findings are then presented to you in a detailed PR Firm Valuation Report.
Meet with a PR Firm Valuation Professional
Gould+Partners has more than 30 years of experience valuing PR firms and creative services agencies. Our extensive knowledge of the industry makes us uniquely qualified to appraise your business and provide you with an accurate evaluation of what your firm is worth. We understand the individualized, specialized nature of appraising public relations agencies, and pride ourselves on providing accurate, thorough valuations.
If you are interested in learning more about our PR firm valuations, give us a call at 917-783-4500 or contact us online.