Selling a business is a monumental decision that involves much more than just financial considerations. For agency owners, the prospect of selling their creative endeavour can trigger a wide range of emotions and challenges that go beyond the numbers on a balance sheet. In this article, we delve into the intricate interplay of emotions and economics when agency owners contemplate selling their cherished enterprises.
1. The emotional rollercoaster
An agency is often more than just a business; it’s a manifestation of an owner’s creative vision, hard work, and dedication. As the idea of selling starts to materialise, agency owners can experience a mix of emotions ranging from excitement and nostalgia to apprehension and uncertainty. The thought of parting ways with a venture that has been nurtured and grown can evoke a sense of loss akin to bidding farewell to an old friend.
2. Identity and purpose
Agency owners often find their identities intertwined with their businesses. The title of “agency owner” becomes more than a mere designation; it becomes part of one’s identity. The prospect of selling can leave owners grappling with questions of purpose and the potential void that may emerge once they step away from the business they’ve poured their heart and soul into.
3. Legacy and impact
Creative agencies contribute to the cultural and commercial landscape by producing impactful work that shapes brands and narratives. Owners may ponder how their agency’s legacy will be preserved post-sale and whether the new owners will uphold the same standards. This concern for legacy often underscores an agency owner’s desire to ensure their work continues to make a positive impact.
4. Balancing financial realities
While emotions play a significant role, the economic aspects of selling an agency can’t be ignored. Owners must grapple with valuation, negotiations, due diligence, and post-sale financial security. Making rational decisions while navigating the emotional landscape can be challenging, highlighting the importance of seeking expert advice and taking a measured approach.
5. The transition period
Once the decision to sell is made, the transition period can be a delicate time for agency owners. Handing over the reins and transitioning client relationships requires finesse and clear communication. Owners might find themselves oscillating between eagerness for a fresh chapter and reluctance to let go of the familiar.
6. Cultivating a support system
The emotional journey of selling an agency is often smoother when agency owners surround themselves with a strong support system. Whether it’s a network of fellow entrepreneurs who have faced similar decisions or professional advisors who provide guidance, having a sounding board can help owners process their emotions and make informed choices.
7. The power of perspective
It’s essential for agency owners to approach the decision to sell with a broad perspective. Viewing the sale not just as an end but as a new beginning can help alleviate some of the emotional turmoil. By acknowledging the opportunities that lie beyond ownership, owners can transition with a renewed sense of purpose.
In the intricate dance of emotions and economics, agency owners stand at a crossroads where their creative endeavours meet financial realities. Navigating this juncture necessitates introspection, consultation, and a delicate balance between sentiment and strategy.
Remember, it’s okay to feel a whirlwind of emotions when considering selling your agency. Acknowledging these feelings and addressing them with thoughtfulness can pave the way for a smoother transition and the eventual creation of a new legacy.
Ultimately, whether an agency owner decides to sell or not, the journey is a testament to their entrepreneurial spirit, resilience, and commitment to their craft. The emotions that arise during this process serve as a reminder that behind every agency is a story that’s deeply personal and profoundly human.
Case study and testimonial from Rachel O’Connor, MD, Siren Comms:
Re-homing my business
“For me, I think the reality is that the driver for sale was the long-coming acceptance that the gas in my tank was running low after a fairly challenging through years since COVID and that ‘that time’ everyone talks about and you never really believe will come, had arrived and for all the planning and replanning, I needed to act to protect my team, my clients and importantly myself to honour what I started.
I think energy and joy are undervalued commodities that are never really talked about. When the joy, the drive, the self-belief, the spirit of fun, and the sense of the ridiculous – all so critical when leading and running an agency – wane then it’s time to reinvent. My reality was that having survived and done well in the immediate harsh grind of the post-COVID the continuing choppy waters coupled with my dad’s illness and death and then the untimely death of a very close friend forced me to look hard in the mirror and act for change. My joy and energy were waning, because I was doing all the things I wasn’t my best at and ultimately that’s not sustainable, I thrive on client work and relationships and was doing less and less of that so that and the relentless need for revenue generation, I moved to make a change.
The reality is that even grit and resilience run out as does the desire and appetite to keep taking responsibility to lead a small team and business through relentlessly choppy waters.
So when the time does come: what do you look for?
It depends on what you set out to achieve. For me, it wasn’t just or even ever – money. My small business has always been a place where people and clients would grow and develop along their career journey, and I always wanted time at Siren to be a rewarding and valuable experience. I think we pretty consistently honoured that. For me, the ultimate exit is to be able to say that all that hard work was really worth it and it made a difference, not only to my own family but to those who we employed and worked with.
1. Finding a buyer
Look for shared values, a business that you know of, or respect already, a business that is at a different stage of its lifecycle and still has all that glowing and infectious chutzpah and will take your people and clients on to their next level, whilst honouring and respecting what you have started. It’s hard to find that and therefore, beyond the numbers, the metrics, and the balance sheet valuations, you have to drill into what the buyer is all about. Ultimately it’s about trusting this acquirer with your ‘babies’ and knowing they will look after them well.
2. Selection
I think it’s good to have an objective advisor who will match-make and understand the drivers of those involved. Annabel Dunstan, CEO and Founder, of Question & Retain, acted brilliantly for us. She took time to build trust, to understand the challenges and opportunities of our business, and then to present options that were around FIT and shared values. Our B Corp accreditation was a good lever and identifier.
3. Objective Negotiation
Having someone to push the deal harder is a good move. Making sure you realise the value that you both walk away feeling good is very important to the integrity of the deal and relationship. If you feel short-changed or aggrieved it will shake down in the communication and execution of the deal. If that piece is managed by a third party, then it makes it all a lot easier and less emotional.”
If you are an agency owner and perhaps not feeling the joy anymore and would like to have a no-strings and confidential chat about what could come next, then please contact: annabel@questionandretain.co.uk Or give her a bell on 07790 216 441.
Rachel O’Connor, MD, Siren Comms
Rachel founded Siren Comms in 2005. She has over 25 years blue-chip marcomms and PR
experience spanning food, lifestyle, travel & tourism, entertainment, charity, corporate & b2b.
Prior to founding Siren, she built her career at Weber Shandwick, Hill & Knowlton, and WPP, as
well as in-house for Marsh Mclelland, Florida Department of Commerce, and Keith Prowse
Expotel. Rachel has grown Siren Comms to deliver the passion, drive, and dedication only a
bespoke agency can offer. She has spearheaded Siren's commitment to better business practices
(B Corp, Living Wage and IID accreditations and our Covid recovery plan, while also championing
young talent development by offering mentoring and training in the workplace.