Want to exit at a higher valuation? You need to think like an acquirer.
To track how buyers are thinking for 2026, I just attended my second ETA Conference . The 12th annual M&A event drew a record 1,100 attendees—acquirers, investors, advisors, and more.
Why go? Because I help clients “build an agency you like—for an exit you’ll love.” This requires understanding what actually makes a buyer say “yes”… versus what makes them walk away. I attended sessions and spoke 1:1 with acquirers and investors.
In this article, I’ll cover what’s new, what remains evergreen, and how to prepare for a lucrative (and ideally low-regret) sale. This advice focuses on agencies doing $2M–$20M+ in revenue—especially with owners looking for their eventual exit. If that’s you, the work starts now.
It’s not about you. It’s about what they want
One of the biggest mental shifts for founders? Realizing that your future buyer isn’t obligated to love your business just because you do.
Many agency owners treat their business like a favorite pet: unique, loyal, maybe a little temperamental—but lovable. But acquirers? They’re not sentimental. They’re shoppers. They’re assessing risk, reward, and how easily they can grow what you’ve built without you.
You’re not trying to convince them that your agency is great. You’re trying to prove it’s a safe, scalable asset.
Want to stand out, in a good way? Make it easier for them to say yes. Here’s how.
What acquirers actually want in 2026
Across my conversations with acquirers—including those who want to buy agencies and other services businesses—here’s what stands out.
1. An agency that works without you
If your agency can’t run for two weeks without your input, it’s not ready to sell.
Acquirers are especially interested in *owner optionality.* That means:
- You’ve delegated key client relationships
- Your #2 is incentivized to stay (and contractually obligated)
- You’ve got SOPs for ops, delivery, and sales
- You’re not the only one who knows the passwords
Otherwise? The buyer’s going to assume they’ll need to hire someone like you—and discount the price accordingly.
And they’re not wrong.
2. Recurring revenue
This trend hasn’t changed in years—and it’s not going anywhere. Compared to other industries, agencies have one of the few business models with recurring revenue that isn’t subscription-based SaaS. That’s a huge win, if you structure it well.
What helps:
- Multi-year (or at least multi-month) contracts
- Clear scope control and renewal triggers
- Strong renewal rates
- Client diversification (not just 2-3 whales)
Retainers are good—but acquirers want confidence that those clients won’t vanish post-sale. A record of strong retention rates will help.
Even better? Clients who are happy to stick around even after the founder leaves. That shows trust in your team and processes—not just in you and your 1:1 relationships.
3. Clean financials
Don’t let a sloppy chart of accounts—or your cousin doing the books—undermine a great deal. Acquirers want to see:
- Clean P&L and balance sheet
- Separation of business vs. personal expenses
- Normalized EBITDA (based on accrual accounting, not cash basis)
- Ideally, a third-party Quality of Earnings (QoE) report
They’re not just valuing your margins—they’re measuring how much cleanup they’ll have to do.
If you’re expecting a strategic valuation but your books still look like a weekend side hustle, think again. One panelist noted that sloppy books make acquirers wonder what else is broken—and this can reduce your final offer.
4. Sales momentum
As one speaker said: “Assume there’s no sales motion, no matter what the seller claims.” In short, he was saying that sellers lie about their sales pipeline and sales structure.
Most agencies rely on owner-led sales. That means the minute you exit, the pipeline dries up. If you don’t have a full-time salesperson, smart acquirers will discount their offer.
To avoid valuation pressure from sales and marketing:
- Build your systems and team around lead-gen and closing
- Track close rates by rep (and find your top performer)
- Price smart: Higher prices, fewer headaches, greater margins
One buyer shared they acquired a company with a top-performing rep who closed 36% of inbound leads—while the company-wide average hovered around 9%. You can guess who stayed versus who got fired.
Their target market was 18–30-year olds. The top sales performer? They discovered that he had previously been a Marine Corps recruiter. His target audience back then? The same group of 18–30-year-olds.
Sales success isn’t always about charisma or polished technique. In some cases, the closer wins because they deeply understand the customer—not because they have the flashiest pitch.
5. Team stability
An agency isn’t just a P&L. It’s a talent machine. Buyers care about:
- Your leadership team (Are they loyal? Capable?)
- Your track record at retaining employees
- The likelihood of employees leaving the minute the deal closes
Yes, buyers are taking a risk, too. One panelist likened M&A to mixing paint: “Be intentional, or it all ends up beige.”
You’re not just selling a company. You’re inviting them into a culture.
If the culture misfit comes to light post-close? Expect the earnout to crumble.
6. Alignment to the buyer’s “What’s next?”
Your buyer has a thesis: Rollup? Platform? Industry specialization? They’re not just buying your agency; your business needs to fit into their larger plans.
Buyers today increasingly fall into two categories:
- One-time buyers: Usually individuals who are self-funded or backed by SBA 7(a) loans
- Programmatic buyers: Individuals or teams who are building a platform or roll-up strategy
With the latter, you’re one of many. Integration risk goes up, because they’re joining several companies at once. But valuation potential may rise, too—especially if your equity in the new entity grows into a higher EBITDA band.
Roll-ups require:
- Operational excellence
- Cultural alignment
- Repeatable systems across companies
If an acquirer buys one business, they can afford to cut corners. If they buy lots of businesses, they have a reputation to protect.
One speaker said they get a 30–40% response rate from acquisition targets—not because of clever outreach, but because of their strong industry reputation. And they’re so confident about the acquirer experience, they connect prospective sellers with past sellers for the second “want to sell?” call.
If you’re selling into a roll-up, professionalism matters. Acquirers don’t want to buy a fixer-upper. They prefer to “ingest” a well-oiled machine, so they can repeat the process again.
What will hurt your exit in 2026
Here’s what acquirers told me will make them say “pass” instead of “proceed.”
Problem: Overly optimistic EBITDA math
You can’t say “EBITDA is $2M” when you’re paying yourself solely through distributions, or you’re running personal perks through the business P&L.
Clean up any issues, before you need to sell. If you’re constantly arguing over add-backs or what counts as discretionary, your deal is already at risk.
If you really want to plan ahead, pay for a third-party Quality of Earnings (QoE) report.
Problem: No #2 (or they won’t be sticking around)
The right second-in-command helps your buyers feel more confident about the deal. If your #2 leaves immediately—or tries to exploit the situation—the buyer has to rebuild your entire leadership.
Your #2 should:
- Be under contract, so they don’t just quit with 2 weeks’ notice
- Be incentivized to stay for a reasonable transition period
- Be someone the team already respects
Experienced buyers know that founders often freak out before a deal closes. But your hired CEO or COO? They might be the bridge to a stable post-acquisition transition.
If your #2 is overworked, under-qualified, or unclear about their career future—you may pay for that in the valuation. And some buyers may walk away entirely if they think your #2 is shaky.
Problem: Owner-led everything
If every major deal, proposal, and strategy decision still goes through you, you don’t have an agency. You have a highly-paid job with assistants.
If you lean toward running a lifestyle agency, there’s nothing inherently wrong with that approach… until you decide to sell.
An acquirer mentioned speaking with dozens of potential sellers. They noticed many small business owners aren’t ready to sell; they’re just tired and looking for an escape hatch. Burnout doesn’t lead to good deals.
Problem: Sloppy systems (or no “chassis”)
An EOS implementer put it well: “Most companies are held together with duct tape and bailing wire.” That might work for you today—but an acquirer wants a “chassis” to build on.
Implications for you? You need:
- A clear sales process
- Documented delivery systems
- Financial visibility
- Strategic planning that includes your team, not just you
If you’ve implemented EOS (or a similar system), you’re ahead of the pack. And it also gives you a better chance at receiving your full earnout.
If your internal strategy meetings still rely on hope, smart buyers can sense that.
From the buyer’s point of view
Buyers aren’t dreaming of the close. They’re stressing about what happens after.
One of the most powerful metaphors from the conference was this: “[Acquisitions] don’t end at the wedding. You’re not trying to be a great bride or groom. You’re trying to be a great spouse.”
Think about that. The acquirer isn’t just buying you. They’re joining your business—and then trying to build a life with it. If the business is chaotic or unpredictable? They’ll pass.
More insights:
- Equity is more expensive than debt financing. In contrast, they don’t have to be as picky if they’re funding the deal via cash flow or balance sheet cash.
- Culture can make or break a deal. If the team’s not on board, integration gets rocky.
- They want to believe in the model. You’re not just selling them on your agency. If the acquirer isn’t already plugged in the agency world, you may need to sell acquirers on agencies as a business model. This is especially important if they’re concerned about AI impacts on agencies.
And then there were the trapped birds
Yes, really. During the roll-up panel, three small birds were trapped in the meeting room—lured by crumbs on the floor, but now desperately trying to escape.
A metaphor for anxious sellers? Early-stage buyers? Tricky earnouts?
Maybe. Or maybe it’s just a reminder that even serious events still have their moments of absurdity—and that your path to exit might have a few not-so-fun surprises.
We opened the doors to free the birds.
Some attendees wandered the event, unfocused. In contrast, other attendees treated the event like a deal-finding sprint: red-eye flights, back-to-back meetings, no fluff. I recommend getting enough sleep—but ultimately, intentionality closes deals.
Bonus: Sell from strength, not survival mode
I ended my trip at the Art Institute of Chicago, where a docent compared two Impressionist still lifes: one grotesque, one pleasing to the eye.
- The artist behind the “moody butcher shop” didn’t need to sell his work. Because he was financially independent, Caillebotte painted what inspired him. In fact, he bought paintings from friends like Monet, to help them survive.
- Monet, with the fruit still life? He had to sell his art. And so, he often felt pressure to play it safe. In fact, the website description notes the fruit “would be more readily marketable than his landscapes.”
That stuck with me.
When it comes to your agency, don’t wait until you have to sell to clean things up. Do it now—so when you’re ready to move on, you can do it from a position of strength.
The less pressure you’re under, the better decisions you make. And the more attractive your agency becomes.
Build the business buyers want—so when it’s time, you don’t have to explain. They’ll see it.
Bottom line: Start now
Want to sell your agency for more in 2026 or 2027? Start now:
- Build recurring revenue you can prove
- Create a sales system that works without you
- Incentivize your #2 (and get them under contract)
- Clean up your financials
- Build the systems that make your agency a straightforward “yes”
It’s not about perfection. It’s about building momentum, projecting professionalism, and helping buyers feel confident saying yes.
Buyers aren’t looking for a fixer-upper. The more prepared you are, the faster they move—and the better the terms you can get.
Upgrade your agency before it’s time to exit
If you want my help upgrading your agency before it’s time to sell, consider one of these two options:
- Agency Growth Diagnostic: Get an in-depth, custom strategy—and initial implementation help, toward your ideal exit.
- Agency Growth Assessment: Get a quick, initial evaluation of where you stand, and what to do next.
Whether you’re looking to sell in 12 months or 12 years, your future buyer is already out there. Make sure when they see your agency, they’re excited to say “Yes!”
Free event — Your Ideal Exit: A Behind-the-Scenes Look at Succession Planning
Most agency owners dream of selling their business someday—but few understand what it really takes. In a candid fireside chat on December 10th, I’m speaking with agency M&A advisor Jonathan Baker—to share the truths we usually reserve for clients.
Get a behind-the-scenes look at how real agency exits actually happen—and how to be ready when it’s your turn. Submit a question in advance—or join live to participate in Q&A. You can RSVP here, including access to the recording.
Question: What can you do now to make your agency more attractive to your acquirer?
