Need help getting out of your operation? Go here: 8figureagency.co
Most agency founders who sell don't get their full exit, and some walk away with a fraction of the headline number. In this episode, Jordan Ross breaks down the biggest lessons from 8 Figure Exit Live. The event brought together about 100 agency owners, roughly a third of whom have already sold, plus speakers John Bond, who built and sold a billion-dollar ad agency, and M&A advisor John Augenblick.
You'll learn why agency M&A is a "combat sport," how buyers structure earnouts, what you should really expect to take home after fees and taxes, and an alternative to selling: gradually selling equity to your team. Jordan also shares John Bond's talent strategies for keeping A-players for the long haul.
In this episode:
(00:00) Why almost every agency founder gets burned in an exit
(01:54) What happens at $2M+ EBITDA: PE firms, holding companies, roll-ups, and professional M&A teams
(02:30) How earnouts are structured against the seller, and the founder who sold for $4M but received $1M
(03:45) Why suing after a bad earnout rarely makes sense
(04:17) How to vet a buyer: call the agencies they've already acquired
(04:40) Selling for $20M and keeping $10M: fees, taxes, and cash at close
(05:10) The legacy alternative: selling 4% of your agency to your team every year at about half the multiple
(07:15) John Bond's first rule: don't chase small opportunities
(07:50) Recruiting talent from outside your city to build loyalty and culture
(08:41) Small equity grants (1–3%) to retain your leadership team
Key takeaways for agency owners:
Treat the cash at close as your real exit number. The earnout is upside, not a guarantee.
Before you sign, ask the buyer's past acquisitions what percentage of their earnout they actually received.
Selling equity to your team gives up some of the multiple but keeps cash flow and your best people.
Small equity stakes for non-COO executives can align incentives far better than salary alone.
Mentioned in this episode: John Bond, John Augenblick, Matt Paulson, 8 Figure Exit Live
Next event: 8 Figure Exit Live returns in March or April 2027. Email [email protected] to get on the list.
