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Build to Sell, Even If You Never Do
Selling your agency might not be on your radar today but it should be part of your long-term strategy.
In this agency mastermind, Chris Martinez, founder of Bloom (formerly DUDE Agency), shares three critical insights every agency owner needs to understand before they even think about selling. With years of experience scaling and eventually transitioning his own agency, Chris brings candid, battle-tested advice to the table.
Whether you want to cash out, exit gracefully, or simply increase your agency’s valuation, this session is packed with gold.
Let’s break down the three things you must know.
1. Your Numbers Are Everything And They Better Be Right
“Buyers don’t care about your design awards or your culture. They care about your numbers. That’s what determines the value.” Chris Martinez
The single most important factor in selling your agency is your financials. No one is buying your clever branding or creative portfolio they’re buying cash flow.
Here’s what buyers want to see:
- Clean P&Ls and Balance Sheets
- At least 3 years of trailing financials
- Accurate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
You need:
- A professional bookkeeper who categorizes cost of goods sold (COGS) correctly
- Monthly reconciled financials
- Clear separation of fulfillment costs vs. operating expenses
Important tip: If you’re doing the work yourself, buyers will deduct your salary from EBITDA to calculate real value. You must account for what it would cost to replace yourself.
Agencies under $1M EBITDA used to fetch 3–4x multiples. Today, buyers expect at least $2M EBITDA for those kinds of multiples.
2. Factor in Taxes, Earnouts, and Non-Competes It’s Not All Take-Home
“You’re not walking away with the sticker price. You’re walking away with the leftovers.” Chris Martinez
If you think selling your agency for $2M means you walk away with $2M… think again.
Here’s the harsh truth:
- Uncle Sam takes 40% of your deal (capital gains, federal/state taxes)
- Earnouts are common expect only a portion of the deal upfront
- Non-compete clauses can bar you from working in your industry for 3–5 years
So when you decide on your number the price where you’d become a seller you need to work backward:
Your real number = Post-tax, post-earnout, post-non-compete payout that secures your future.
That often means building to sell for a much larger number than you originally thought.
3. Buyers Want a Growth Story Not a Job
“No one wants to buy your job. They want to buy a scalable asset.” Chris Martinez
A serious buyer isn’t just buying your past success. They’re investing in future growth and they want you to show them the roadmap.
You need:
- A clear strategic growth plan (a pro forma helps immensely)
- Defined lead generation systems, ideally decoupled from the founder
- A plan for team scalability, including leadership and fulfillment
Chris shared the story of an agency that had a 20,000-person email list but no sales team. By showing how a buyer could plug in five reps and 10x monthly sales, they increased their valuation dramatically.
“Your job is to convince buyers your business is worth more. Their job is to convince you it’s worth less. Be ready.”
Bonus Insight: Media Matters, If It Drives Results
Chris also touched on assets like podcasts and books. Do they add value?
Only if they:
- Drive measurable lead gen (with cost per lead and ROI)
- Create recurring revenue (e.g. podcast ad deals)
- Are systemized and transferable
Branded trucks? Not so much unless they work as billboards with measurable ROI.
Quotes Recap:
“If you’re not building a business you can sell one day, you’re wasting your time.”
“Buyers are not buying your job they’re buying your systems and growth potential.”
“Your financials aren’t just numbers. They’re your story. Get them right.”
Connect with Chris Martinez
Chris Martinez is the founder of Bloom, a consulting firm that helps marketing agencies improve operations, profitability, and scalability so they can build businesses that are ready for acquisition—or just run better. Formerly the founder of DUDE Agency, Chris has deep experience in agency operations, outsourcing, and building sellable systems.
Explore more from Chris:
- Website: https://bloompartners.io
- Podcast: Build a Better Agency – Spotify
- LinkedIn: Connect on LinkedIn
Whether you’re optimizing for scale or prepping for exit, Chris is a go-to resource for agency owners serious about growth.
Build an Agency That’s Worth Selling Even If You Never Do
Selling your agency might be years away, or maybe it’s something you’d never consider. But if you’re building something valuable, it should be structured to function and thrive without you.
At That Company, we’ve helped over 700 agencies build, scale, and systemize operations that increase margins, profitability, and sellability. Our white-label model puts you in the visionary seat while we run your fulfillment client-facing and under your brand.
Want to talk about how we can help you build an agency that’s built to sell? Contact us here or subscribe to our YouTube channel for more mastermind insights like this one.
