The 186-day Reality Check Every Agency Seller Needs

Had a conversation recently that crystallized something I've been seeing for months.

A founder with a $500K agency wanted to know how to maximize their cash at closing. They'd heard stories about 80-90% cash deals and wanted that outcome.

Here's what I told them: stop chasing the big check.

Founder-led sales. Delivery that depends on one or two people. A small team where one departure creates chaos.

I've done three acquisitions now, and the best deals weren't structured around maximizing cash at close. They were structured around finding the right growth partner.

When you're at $500K, the question isn't "how do I wash my hands of this business?" It's "who can help me build something bigger while reducing my personal risk?"

The key thing to remember when a potential buyer takes a look at your agency -> they are much less concerned about your historical performance and are evaluating how you will perform moving forward.

That might mean an earn-out. A seller note. An equity rollover. These aren't consolation prizes—they're often the path to more total value and a better outcome for everyone.

The founders who get stuck are the ones fighting for deal structures that don't match their business reality. The ones who succeed find partners aligned with where they're actually going.

Here's something that surprises first-time sellers: acquiring or selling a $1M agency isn't a solo effort.

You need a professional team assembled before you get serious about a transaction. Not after you have an LOI. Before.

The lineup:

The cost of assembling this team is real. But the cost of entering an LOI unprepared is worse—because once a deal falls through, those are sunk costs you don't recover, and you're back to square one.

Peter Lang (host of Agencies Acquisitions and Exits and an advisor to Aragon Holdings) shared a data point recently that every agency owner considering an exit should internalize: the average agency acquisition takes 186 days to close.

That's six months. And that's the average.

Add SBA financing or complex debt structures? You're looking at longer. Factor in the months it takes just to find the right buyer before you even get to an LOI? You're potentially looking at a year-plus process.

Your numbers need to hold up through due diligence. Your team needs to stay intact.

The agency M&A market is also flooded with tire kickers—buyers who lack experience or financial capability, sellers who want endless conversations without commitment. Before you invest serious time with anyone, verify they can actually close. Ask direct questions about financing, experience, and timeline.

Qualifying partners early isn't rude. It's respect for everyone's time.

I've been reflecting on a question lately: What's the biggest risk you've avoided taking, and was it fear or wisdom?

In agency M&A, I see founders on both sides of this. Some are too cautious—passing on deals or partnerships that could have accelerated their growth. Others move too fast without doing the work.

I'm curious where you fall. Reply and tell me about a risk you didn't take in your agency. Do you regret it, or was it the right call?

That's it for this week. If you're thinking about an exit or acquisition and want to talk through your situation, just reply.

Thanks for reading!