How to Implement a Successful Roll-Up Strategy for Your Agency

<p>Todd Taskey has over twenty years of experience as a founding investor, board member, and management team of several business ventures. Now, as M&A at <a href= "http://potomacbusinesscapital.com/" target="_blank" rel= "noopener">Potomac Business Capital</a>, he helps CEO's and entrepreneurs develop a successful exit strategy by understanding the mid-market investment banking process. Today he joins us to talk about roll-up strategy, the mergers and acquisitions red flags you should avoid, and what you should be offering as an agency if you're thinking of selling.</p> <h2>3 Golden Nuggets</h2> <ol> <li><strong>Thinking about selling?</strong> A lot of agency owners are thinking of selling at some point in the future. How can they be sure to <a href="https://jasonswenk.com/selling-your-agency/" target="_blank" rel="noopener">get the most value</a>? Our guest agrees that you should pay a lot of attention to your EBITDA. A lot of times, buyers won’t even consider you unless you have $1 million in EBITDA.</li> <li><strong>Specialization is the key.</strong> If you own a small agency and are looking at roll-up mergers as a possible strategy for the future ask yourself “am I <a href= "https://jasonswenk.com/disrupt-status-quo-win-new-business/" target="_blank" rel="noopener">providing a really specific piece</a>?” “Am I really, really good at providing that to folks?” There are lots of opportunities out there and, if you’re smaller, it’s easier if you can solve a specific issue.</li> <li><strong>Red flags you should avoid.</strong> The most important aspect that sometimes determines the failure of a merger is culture fit. You should always have that in mind. Another mistake is to think of it not just as two identical companies coming together. If they're smaller, they should add certain capabilities.</li> </ol> <h2>Sponsors and Resources</h2> <p><span style= "color: #ff6600;"><strong>SweetProcess: </strong></span>Today's episode is sponsored by <a href= "http://sweetprocess.com/smartagency" target="_blank" rel= "noop