Digital marketing services for businesses to increase online visibility

The well established 20 year old Digital Marketing Company has built a solid track record and reputation on a referral-driven business model and offers a full suite of digital marketing services that covers the lifecycle of needs for its clients. The company designs and develops WordPress and Ecommerce websites and then positions the websites on AI channels, Search Engines, and social media channels. The agency also drives traffic with online advertising management, content creation and syndication, and LinkedIn and email outreach. The business continues to grow consistently and is uniquely positioned for growth as it adds in an outbound marketing lead system in 2025. It has a 2024 revenue of $2.3m and SDE of $850k. A robust recurring revenue base (85% of revenue) and a lean, hybrid employment operational model. $550k (Net Profit & Addbacks) $300k (Owner Compensation & Profit Share) Total Profit/SDE = $850k (This can be further optimized as the revenue stands strong at $2.3m and so there's a lot of room for enhancing profitability)

Asking Price

$3.4M

Multiples

Asking Price Reasoning

Based on the business's strong financial performance, a 20 year track record and an 85% recurring revenue, an SDE multiple of 4x and a revenue multiple of 1.48x, we believe this valuation fairly reflects value.

$2.3M last 12 months gross revenue

$850k last 12 months net profit

$191.7k last month gross revenue

$71k last month net profit

51-100 Active Clients

- Avg Contract Value

- Client Retention Rate

+10% Annual Growth Rate

- Top Customer Location

- Top Client Concentration

Date Founded

January 2005

Team Size

Small (2-20)

Business Model

Advertising
Business-to-business (B2B)

Core Services: o AI and Search Engine Visibility: Accounts for approximately 40% of the revenue. o Advertising Management (PPC): 20% of revenue. o Content Creation and Social Media Engagement: 20%. o Website Development, Hosting, and Maintenance: 10%. ● Other Services: Additional digital marketing services contribute the remaining portion of revenue. Revenue Structure: ● Recurring Retainers: Approximately 85% (clients typically pay between $1,500 and $5,000 per month, with one premium account paying significantly more, at around $14,000 per month). ● One-Off Projects: Approximately 15% (such as website builds or special campaigns). Operational Footprint Delivery Model: US-based headquarters with a fully distributed team of 20 located in multiple states and overseas..

Tech Stack

JavaScript
Wordpress
HTML

Growth Opportunities

Expand to new markets
New product features
Improve conversion rates
Increase content marketing
Hire a sales team

● Lead Generation Expansion: Implementation of a structured lead generation strategy to scale up revenue on top of the organic growth witnessed. ● Operational Optimization: Opportunities exist to optimize management and executive compensation, potentially increasing profitability for a new owner. ● Buyer can leverage the Company’s recurring revenue model, robust client relationships, expertise and the goodwill built over the last 20 years. ● Client Diversification: Having 50 well diversified clients with solid revenue and the potential to cross-sell additional services.

Competitors

Other Digital Marketing Firms

Key Assets

Domain
Trademarks
Brand
Intellectual property
Marketing materials

Selling Reasoning

Financial gain
Retirement

Transaction Options: The sellers are willing to make a 100% exit while also remaining open to help with the transition after the sale.

Financing

Bootstrapped

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Digital marketing services for businesses to increase online visibility

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Startup details

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