Buying Small to Then Buy Larger ($1m SDE)

Here's what a media agency will sell for. And so this being a combination of the three, actually did a little bit of, you know, I mean, did some, did some work there to say, well, here's how much of your revenues comes from branding, here's how much comes from media, here's how much comes from reproduction work that you guys do, you know, and so really laid it out like, here's what the white…

And they've looked at a number of, you know, quite a few acquisitions. And so obviously the overall size of the agency makes a difference in that as well. And so, yeah, we, for those reasons, here's what I think the multiple should be.

It'S not a good look for an owner to come in day one and be like, sorry, guys, no more office.

Right, exactly, exactly. So, you know, like, you know what, there's some things that need added, you know, that I'm not going to accept as an ad back. And so, so we, you know, that means that, okay, here's the number you told me, here's the number that I kind of believe, but the multiple is not getting discount.

Like the multiple. I'm just taking an industry standard accepted multiple.

Basically, you were looking at comps.

Yeah, yeah, exactly. Exactly.

Well, that's a great rationale. That's a, that's a very robust argument that you made, which is maybe why they were like, we accept that. That's great. Um, and, and by the way, what was the headcount and what were the numbers of the business? I don't think you told us Revenue, top and bottom line.

Oh, no, I don't think I did. So the, the top line, it was acquired August of 2024 and it was nine. Almost nine. Exactly. Nine million exactly.

It was a little higher. It was like 9.1 million as the top line. The, the bottom line was about a million.

So not great in terms of margin at that, that particular year, but it was about a, about a million. And then the headcount is or was at the time of acquisition. We had I think 27 at that time.