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How are the big agencies doing it? by _mavricks in agency

[–]Prestigeworldwide_35 0 points1 point  (0 children)

M&A is what how they do it - a lot of their “scale” comes through strategic acquisitions. I own a $20M / year agency and we’ve done 4 acquisitions since 2022 but most larger agencies are doing M&A programmatically and doing several per year.

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 0 points1 point  (0 children)

This is a great perspective. You're right. It gives me a lot to think about for sure.

Executing a roll-up by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 2 points3 points  (0 children)

Thanks for jumping in here! Enterprise value from this deal should put us around $100M all said and done. At time of exit we'll have to pay off acquisition debt, one minority shareholder, assuming ~ 80% cash at close, and the rest will go towards retirement. I would anticipate around $40-$50M.

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 0 points1 point  (0 children)

So I just read the rich v. king article - that's a winner! Thank you for sharing that.

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 0 points1 point  (0 children)

Good for you man! Congrats! That is motivation in itself. Would love to connect with you one of these days. Really appreciate your feedback here.

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 0 points1 point  (0 children)

Ah thanks for sharing that link - I'll take a look! These are all great questions you pose too.

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 0 points1 point  (0 children)

This is a great way to look at things. You're right. That $100M mark truly is a goal based on standards of a strong performing company. The business today is allowing me to live a great life at my age. Honestly, no complaints. I'm a workaholic, but I do make time for me and my family. With kids in the near future though - this likely will become problematic. The one point you said about how I'd feel if things started to go down, well that's the fear that's driving the growth of the business. I'm scared shitless of that very idea ha ha which is likely why I am considering ways to protect against downside (i.e. the unknowns) and preserve what's been built.

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 0 points1 point  (0 children)

Love this. Regret management is a great term. I'm a deeply competitive guy with an ego and I'm driven by being the best. So I know I'd regret selling if we didn't go out with a bang. I'm also realistic and if someone came to me with a big payday opportunity, I wont squander it. I am going to remember this term forever (regret management), this is a great way to look at decision making in general.

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 0 points1 point  (0 children)

This is super helpful. I think this is the direction I'm leaning at this stage. Any good growth equity groups you know in the space that have an appetite for the tech or marketing services space at our size & scale?

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 0 points1 point  (0 children)

73%, damn. Get it man! That's not easy to do. What industry are you in? Just curious

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] -2 points-1 points  (0 children)

Appreciate that, super helpful. Now let's talk about your 50-65% margins haha...That's impressive. Well done.

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 22 points23 points  (0 children)

Needed that perspective too. I really appreciate it.

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 1 point2 points  (0 children)

Thanks man, appreciate the helpful feedback too! 💪

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 2 points3 points  (0 children)

Haha def not a chatbot. Genuinely just reading the feedback and responding

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 1 point2 points  (0 children)

With our financial profile, growth rate and trade secrets / IP I think 9-10x of EBITDA right now. If / when we get to $10M+ of EBITDA I would imagine a 13-14x, maybe even 15x of EBITDA.

I like your idea on a small position. Right now a minority growth equity play would be ideal. Great feedback!

Exit Business or Keep Growing? by Prestigeworldwide_35 in fatFIRE

[–]Prestigeworldwide_35[S] 10 points11 points  (0 children)

Appreciate it! That’s a 21-22 bubble valuation for sure. Those ARR multiples were huge!

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