Agency multiples right now range from 4x to 12x EBITDA.

That's not a typo. The spread is that wide.

And it has almost nothing to do with revenue size, headcount, or how long you've been in business.

The single biggest driver of where you land in that range: the quality of your customer renewals.

Specifically — are your clients renewing because they love the results, or because switching is painful? Those are two completely different businesses. One commands a premium. The other gets discounted the moment a buyer looks closely at churn patterns and contract terms.

What moves you toward the 10–12x end:
— Multi-year contracts with auto-renewal clauses
— Clients who've expanded scope (not just renewed)
— Revenue that grows without you personally selling it
— NPS or retention data you can actually show a buyer

What keeps you stuck at 4–5x:
— Month-to-month retainers with no documentation
— Revenue concentration (one client = 30%+ of billings)
— Owner-dependent relationships that don't transfer
— No formal renewal process

Most agency owners I talk to are surprised by this. They assumed size was the value driver. It isn't. Predictability is.

If you've ever thought about what your agency might be worth — or what it would take to get to the top of that range — I'm happy to have that conversation. No obligation, no pitch.

Just reply to this email or reach out at [email protected].

— Mohan
Vangal | micro PE for digital businesses