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Full-Service Marketing Agency in NYC - $8M in Sales

Average client tenure is 14 years!

CASH FLOW
$2,972,674

Specifications

  • Price
    $13,800,000

  • Revenue
    $8,114,810

  • Cash Flow
    $2,972,674

  • Location
    New York City

  • Service Area
    Nationwide

  • Profit Margin
    37%

  • Employees
    3 Owners + 30 FT staff: creative copy, creative art, client services + consultants and freelancers subcontracted out as needed

  • Reason for Sale
    Exploring other opportunities

  • Equipment
    $706,757

The average client tenure for this full-service marketing agency in NYC is 14 years! With over $8M in annual revenue, a 37% profit margin, and a 90+% recurring client base, this agency provides the full gamut of advertising services across all media facets, with one simple philosophy: Great creative needs to change someone’s mind. The experienced team handles brand strategy, messaging strategy, campaign development, website development, CRM, email marketing, content marketing, employee engagement, marketing collateral and media planning and buying. The typical project scope runs from $20,000 to $150,000. The three owners currently handle client relationships, financial management, and creative products; they are willing to stay on for up to three years and do a promissory note of 10% plus an equity roll of 10-15%.

 

Primarily working with financial/retirement services, insurance, technology and healthcare categories, this agency is involved in industries that are playing an important role right now and using this opportunity to catch up in the digital space. The team consists of 30 full-time senior creative copy, creative art, strategy, and client service staff; consultants and freelancers are subcontracted out as needed. This senior focused staffing approach enables this agency to work quickly and efficiently even under the most difficult circumstances.   The core staff is comprised of seasoned senior executives who have worked for large global advertising agencies.

 

Priced at $13,800,000, this company is prime for purchase for anyone who wants to get involved in something proven and profitable. By continuing to build new client relationships, while cultivating existing connections, a new owner could certainly take this company to the next level.

Business Highlights

Year Established: 2004

Location:  New York City

Service Area:  Nationwide

Services: Brand strategy, campaign development, web development, content marketing in television, print, digital, and social media, media planning and buying and account-based marketing

Clients: Financial services, national insurance agencies, technology, communications, and health care businesses

Lease: 5,000 sq. ft. of open office space

Reason for Selling: Exploring other opportunities

Personnel: 3 Owners + 30 FT staff: creative copy, creative art, client services + consultants and freelancers subcontracted out as needed

Seller Training Period: 2-3 years, if desired

Growth Opportunities: Continue to build client relationships with blue chip clients

Current Owners’ Responsibilities: Client relationships, financial management, creative products

Financial Highlights

  • List Price: $13,800,000

  • A/R: $717,504
  • A/P: $180,581
  • Working Capital: $536,923
  • WIP: $71,066

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L Statement
July 2020-June 2021
P&L StatementTax ReturnTax ReturnTax ReturnNotes
2020-20212020201920182017
GROSS SALES$8,114,810$8,069,566$8,891,748$7,253,326$4,997,887
Net Income Shown on Financial Statement$2,943,726$2,312,347$3,197,568$2,139,523$1,506,060
ADDBACKS
Depreciation$19,522$0$2,728$2,729$2,728
Interest$24,773$27,392$40,040$31,162$18,198
Meals$2,130$10,495$17,632$14,866$29,817
Retaining Owners$-500,000$-500,000$-500,000$-500,000$-500,000$250,000 for Owner 1 & 2
Contributions$5,760$5,660$3,100$9,163$6,950
Owners' Disability Insurance$3,150$2,889$3,234$2,447$4,260
Owners' Long Term Care$15,657$15,657$15,657$14,911$19,521
Owner Health Insurance$72,272$41,619$38,786$37,000$47,775For Owner 3 (and 4 in 2017)
Owners' Biz Development$76,485$68,766$95,987$58,292$55,960Expense will be removed under new ownership
Consulting$18,750$18,750$0$0$0For sale preparation
Gifts$20,239$16,616$13,217$11,514$9,024
Owner Pension$270,210$167,581$186,000$183,000$240,000Owners are 70% on P&L
TOTAL ADDBACKS$28,948$-124,575$-83,619$-134,916$-65,767
Seller's Cash Flow = Total Addbacks + Net Income$2,972,674$2,187,772$3,113,949$2,004,607$1,440,293
Profit Margin36.63 %27.11 %35.02 %27.64 %28.82 %
  • TTM Profit Margin: 37%

Clients

  • Financial Services
  • Insurance
  • Technology
  • Communications
  • Health Care

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

 

 

 

Personnel

  • 3 Owners
    • Owner 1: President
    • Owner 2: Creative Director
    • Owner 3: General Manager
  • 30 FT W2 employees
    • Creative Copy
    • Creative Art
    • Client Services
    • Finance
  • Consultants and Freelancers subcontracted out as needed

Growth Opportunities

  • Continue to build client relationships with blue chip accounts.
  • Cultivate existing connections.

Valuation Details

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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f 402.939.0857

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The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.