Updates on agency M&A trends and operational insights
I talk to agency founders every week who are either thinking about selling or thinking about acquiring. And one pattern keeps showing up in the deals that go smoothly versus the ones that blow up: the best acquirers already know what they're buying.
Not because they ran better spreadsheets. Because they worked together first.
Here's what I mean. Before you acquire an agency, whenever possible, find a way to collaborate on something small. A joint project. A referral relationship. A short-term engagement where your teams actually interact.
This isn't some clever trick — it's the most honest form of due diligence there is.
| You learn how they communicate with clients. You see the quality of their deliverables under real conditions. You watch how their team handles feedback, deadlines, and ambiguity. |
Behavioral observation often predicts outcomes better than financial analysis alone. You get a feel for whether their operations are tight or held together by heroics.
Financials tell you what happened. Working together tells you why it happened — and whether it'll keep happening after you wire the funds.
I've walked away from deals that looked great on paper because something different feel quite right with operations. When you actually work on a project together, these types of issues come to the forefront.
And I've leaned harder into deals that seemed risky because the working relationship showed me something the numbers couldn't.
If you're thinking about acquiring an agency, find a way to work with them first. Refer them a client. Partner on a pitch. Do a small joint engagement. The insights you gain in 60 days of collaboration beat 60 hours of diligence calls.
I get this question constantly: Should I hire a consultant? A coach? An advisor?
I've used external help across almost every part of my businesses — financing, positioning, software development, HR, legal. Advisors and subject matter experts have been critical to my growth. But I've also wasted money on consultants who didn't move the needle.
Here's the simple framework I use now:
The Problem: You're stuck on something. Growth, operations, a specific technical challenge — doesn't matter what.
The Approach: Ask two questions:
Is this obstacle significant enough to impede my goals?
Can my internal team solve it fast enough?
If the answer is "yes" and "no," you need outside help. If you can solve it internally in a reasonable timeframe, save your money.
The Outcome: External consultants aren't just for expertise — they provide a third-party perspective your internal team simply can't offer. Sometimes that outside view is worth more than the tactical advice.
| The mistake I see agency owners make is waiting too long. By the time they hire help, the problem has compounded. Speed matters. |
I'm curious: if you've acquired or sold an agency, did you work together beforehand? Did it help — or did you wish you had?
Hit reply and let me know. I'm collecting these stories for a deeper piece on non-traditional due diligence methods.
And if you're thinking about an exit and want to explore what a long-term partnership looks like, let's talk.
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Tristan Pelligrino
Partner
Aragon Holdings
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