How much is my agency worth is most of our revenue is retainer based?

It’s a question we hear almost daily from agency owners.

And it makes sense. Retainers feel stable, but when it comes to valuation, does that stability translate into real value?

🔍 𝐑𝐞𝐭𝐚𝐢𝐧𝐞𝐫𝐬: 𝐓𝐡𝐞 𝐃𝐨𝐮𝐛𝐥𝐞-𝐄𝐝𝐠𝐞𝐝 𝐒𝐰𝐨𝐫𝐝

Buyers love predictable income. Retainers suggest consistency, client loyalty, and scalable delivery. But they also raise questions:

◻️ Are the relationships contractual or handshake-based?
◻️ How long is the average retainer term?
◻️ What’s the client churn rate?
◻️ Are margins sustainable, and delivery teams efficient?

Without clear evidence of durability and profitability, “retainer revenue” can be discounted in a valuation, even when it shouldn’t be.

💡𝐇𝐞𝐫𝐞’𝐬 𝐰𝐡𝐞𝐫𝐞 𝐕𝐚𝐥𝐮𝐞 𝑰𝒔 𝐅𝐨𝐮𝐧𝐝

At M&A Advisory, we specialise in turning sector nuance into valuation clarity. For retainer-heavy agencies, we focus on:

✅ Client Stickiness: Showcasing multi-year relationships and low churn.
✅ Revenue Mix: Proving a healthy balance between retainers, project work, and upsell opportunities.
✅ Service Efficiency: Highlighting scalable delivery and margin optimisation.
✅ IP or Methodology: Packaging what you do into something buyers can scale.
✅ Contractual Security: Demonstrating formal agreements with clear renewal patterns.

This transforms your retainers from “nice to have” into serious value drivers.

🎯𝐒𝐨… 𝐖𝐡𝐚𝐭’𝐬 𝐘𝐨𝐮𝐫 𝐀𝐠𝐞𝐧𝐜𝐲 𝐖𝐨𝐫𝐭𝐡?

💡𝐑𝐞𝐭𝐚𝐢𝐧𝐞𝐫 𝐫𝐞𝐯𝐞𝐧𝐮𝐞, 𝐰𝐡𝐞𝐧 𝐩𝐫𝐞𝐝𝐢𝐜𝐭𝐚𝐛𝐥𝐞, 𝐩𝐫𝐨𝐟𝐢𝐭𝐚𝐛𝐥𝐞, 𝐚𝐧𝐝 𝐰𝐞𝐥𝐥-𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞𝐝, 𝐜𝐚𝐧 𝐜𝐨𝐦𝐦𝐚𝐧𝐝 𝐚 𝐩𝐫𝐞𝐦𝐢𝐮𝐦, 𝐧𝐨𝐭 𝐚 𝐝𝐢𝐬𝐜𝐨𝐮𝐧𝐭

In fact, recurring revenue is one of the most sought-after attributes in a marcomms acquisition in today’s market. But only if it’s framed right.

That’s where we come in.

📈𝐈𝐟 𝐘𝐨𝐮’𝐫𝐞 𝐖𝐨𝐧𝐝𝐞𝐫𝐢𝐧𝐠 𝐖𝐡𝐚𝐭 𝐘𝐨𝐮𝐫 𝐑𝐞𝐭𝐚𝐢𝐧𝐞𝐫𝐬 𝐀𝐫𝐞 𝐖𝐨𝐫𝐭𝐡…

We can help you position your business for maximum valuation and find the right buyer who sees your recurring revenue as a strength, not a risk.

Send us a message: davidb@mandaadvisory.com 

 Let’s talk value. Real value.