NYC Marketing Agency with 90% Recurring Clients
With over $8M in annual revenue and a 37% profit margin!
With over $8M in annual revenue and a 37% profit margin, the average client tenure for this New York City full-service creative agency is 14 years! Maintaining 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.
The agency implemented a successful work-from-home strategy in early March 2020 to improve work/life balance among the team. The timeliness of this implementation allowed them to transition nearly seamlessly through the difficulties of the pandemic.
Priced at $13,000,000, 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.
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 clientsCurrent Owners’ Responsibilities: Client relationships, financial management, creative products
- List Price: $13,000,000
- A/R: $717,504
- A/P: $180,581
- Working Capital: $536,923
- WIP: $71,066
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
July 2020-June 2021
|P&L Statement||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$2,943,726||$2,312,347||$3,197,568||$2,139,523||$1,506,060|
|Retaining Owners||$-500,000||$-500,000||$-500,000||$-500,000||$-500,000||$250,000 for Owner 1 & 2|
|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||$47,775||For Owner 3 (and 4 in 2017)|
|Owners' Biz Development||$76,485||$68,766||$95,987||$58,292||$55,960||Expense will be removed under new ownership|
|Consulting||$18,750||$18,750||$0||$0||$0||For sale preparation|
|Owner Pension||$270,210||$167,581||$186,000||$183,000||$240,000||Owners are 70% on P&L|
|Seller's Cash Flow = Total Addbacks + Net Income||$2,972,674||$2,187,772||$3,113,949||$2,004,607||$1,440,293|
|Profit Margin||36.63 %||27.11 %||35.02 %||27.64 %||28.82 %|
- TTM Profit Margin: 37%
- Financial Services
- Health Care
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- 3 Owners
- Owner 1: President
- Owner 2: Creative Director
- Owner 3: General Manager
- 30 FT W2 employees
- Creative Copy
- Creative Art
- Client Services
- Consultants and Freelancers subcontracted out as needed
- Continue to build client relationships with blue chip accounts.
- Cultivate existing connections.
|Document Title / Description|
This folder is empty.
Access to this Deal Room is restricted
Would you like to access the deal room?Yes, please
Already have an account? Log in here.
Print, sign and send to:210 N 78th St. 2nd Floor
Omaha, NE 68114
Or fax to: