Is this design agency a good buy? - Acquisitions Anonymous episode 145

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Michael Girdley (@Girdley) and Mills Snell (@thegeneralmills) talk about a Productized design services agency for startups that started in January 2020 in New Jersey. We discuss how this business works and what we think about the business model. We also discussed the status of Agencies in this macro environment. The two also share their insights on strategies to buy this business without setting aside the year-to-year expected revenue.

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Thanks to our sponsor!

SMBash.com - Join us in Austin, TX from April 27th - 30th, 2023, for one-on-one interaction with others who focus on buying, operating, and investing in the SMB and Micro-PE space.

SMBash is a live gathering of SMB, Micro-PE, and ETA owners, operators, and investors.

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Show Notes:

(00:00) - Introduction

(01:01) - Our sponsor is SMBash

(02:24) - Mills & Michael catch-up

(03:25) - Deal & financials: Productized design services agency for startups

(07:01) - How does this deal work?

(08:54) - What do we think of this business model?

(10:14) - How is customer relationship management in this business?

(13:41) - What happens to Agency businesses in this macro environment?

(16:18) - Why is this a “mullet” business? How does that work?

(18:25) - Why would Mike pass on this one?

(21:57) - What is the bull case for agencies?

(25:19) - How would Mike negotiate this deal?

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Additional episodes you might enjoy:

#143 - Is this cell tower business any good?
#142 - Should we buy this Crossfit Gym?
#141 - A very profitable B2B Internet Business in the Petcare Vertical
#140 - Let’s SBA the heck out of this deal - with special Guest Heather Endresen

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