Last Updated: January 22, 2025
This report aggregates EBITDA multiples and valuations data on private marketing agencies as of Q1 2025. We begin by providing context on the M&A environment for owners of marketing agencies, drawing from our conversations with M&A advisors as well as our own personal experience. We have previously published EBITDA Multiples by Industry, which has become a trusted resource among M&A professionals and investment banks.
The 2025 M&A Market for Marketing Agencies
In 2025, the larger trends of M&A markets impacted marketing agencies as expected. Fewer deals have closed than the industry saw prior to interest rates rising in 2022 due to the higher cost of capital. Agencies fell squarely into the list of sectors that have been hit by the market downturn, as they tend to rely on larger businesses’ marketing budgets. The agencies that got deals done earlier in the year were serving recession-proof industries such as consumer staples and healthcare, or focused on mission-critical aspects of marketing, such as the creation or development of websites. However, since the fed lowered rates in September 2024, there has been an increase in M&A activity. While the soft M&A market for agencies in Q1-Q3 2024 saw 34% fewer deals than the same period in 2022, Q4 2022 saw a ~22% jump in deal volume.
Looking back on 2024, the deals that took place didn’t see lower valuations, as those agencies exhibited resilience through two major events in the past three years – the pandemic-induced halting of the economy in 2020 and the market decline that began in H2 2022. Buyers also didn’t back out of deals any more than they did in the last 5 years. PE firms and strategic acquirers have shown they care deeply about their reputations as buyers, and backing out of more than one or two deals in a decade can have a significant impact on their perception in the market.
Most agencies that sold at the top end of the EBITDA multiple range (8-12x) in 2025 had 3 years of double-digit top line growth, low customer concentration, and customer lifespans significantly higher than average (6.2 months). They were also represented by M&A advisory firms, which tend to have a good understanding of the landscape of acquirers and help negotiate the final deal.
| Related: See our 2025 report on the Top M&A Advisory Firms in the US. |
The best outcomes for marketing agency owners were nearly always tied to a formal deal process that brought multiple potential acquirers to the table. The deals on the lowest end of the valuation spectrum occured when agency owners self-represented rather than hiring an advisor.
EBITDA Multiples for Private Marketing Agencies – 2025
The following table contains the average EBITDA multiples being paid for marketing agencies in 2025, segmented by company type and EBITDA range.
EBITDA Multiples for Marketing Agencies | |||
| Company Type | EBITDA Range | ||
| $1-3 M | $3-5M | $5-10M | |
| Digital Marketing | 4.9x | 6.1x | 9x |
| Growth Marketing | 5.2x | 7x | 10.2x |
| Performance Marketing | 5x | 6.5x | 9.3x |
| Creative Marketing | 4.6x | 6.9x | 8.1x |
| Social Media Marketing | 5.3x | 7.1x | 9.2x |
| Advertising | 5.5x | 7.6x | 9.5x |
| Account-Based Marketing | 5.5x | 7.6x | 10.6x |
| Personal Reputation | 4.5x | 6.6x | 8.2x |
| Branding | 4.7x | 6.5x | 8.9x |
| Traditional Marketing | 5.2x | 8.2x | 10.4x |
Selling a Marketing Agency in 2025
Although it’s the industry standard for M&A deals, EBITDA multiples aren’t the only way that acquirers are valuing agencies. For instance, on the lower end of the EBITDA spectrum, Seller’s Discretionary Earnings (SDE) is somewhat common. Sometimes, an M&A advisor will proactively put forward other valuation models in order to get a better valuation.
If you have any questions, I’m happy to speak. I’m the owner of an agency and have sold several businesses to both private equity and strategic buyers. You can email me using the address below or through this website.
