Whether you are scaling towards your first £1m revenue or thinking about what an exit looks like in five years, this is where we cover the financial decisions that shape how your agency grows and what you ultimately take out of it.
Agency valuations are typically based on EBITDA multiples (earnings before interest, tax, depreciation and amortisation). Creative and marketing agencies typically trade at 4–7x EBITDA depending on recurring revenue, client concentration, team dependency on the founder, and growth trajectory. The single biggest value driver is recurring revenue: retainer-based agencies command significantly higher multiples than project-based ones. Preparing for sale is ideally a three-to-five year process, not a six-month one.
Business Asset Disposal Relief (BADR, formerly Entrepreneurs' Relief) reduces capital gains tax on qualifying business disposals to 18% from 6 April 2026 (it was 14% in 2025/26 and 10% before April 2025). The lifetime limit is £1 million. To qualify, you must have owned at least 5% of the ordinary share capital, been an officer or employee, and held the shares for at least two years before disposal. Planning your exit structure well in advance, including how shares are held and whether to use an EMI scheme for key employees, can significantly affect your post-exit tax position.
Many agency acquisitions include an earn-out: deferred consideration paid over one to three years based on future performance. Earn-outs are taxed as income if linked to continued employment, or as capital gains if structured as a true purchase price adjustment. The difference in tax treatment is substantial. Management buyouts (MBOs) allow your senior team to acquire the business using a combination of equity, bank debt and seller financing. Each structure has different tax, legal and practical implications that must be planned carefully before heads of terms are signed.
Most agency founders only think about exit planning when a buyer appears. By then, it's often too late to fix the numbers. Here's how a specialist accountant helps you prepare, value, and structure your agency sale from the start.
Selling your agency is a multi-year process, not a one-off event. Your accountant's role shifts from compliance to strategy, valuation, and deal structuring. Here's when to involve them and what to expect at each stage.
If you are planning an exit in the next few years, knowing your agency's likely EBITDA multiple is essential. We look at the 2025 data for UK marketing agencies, what drives multiples up, and what pulls them down. Real benchmarks, not guesswork.
Business Asset Disposal Relief (BADR) gives you a 18% capital gains tax rate on your agency sale, but only if you've held the shares for two full years. Many founders miss this by months. Here's what you need to plan for.
A practical step-by-step guide to building an investor-ready financial model in Excel. Covers revenue forecasting, cost structures, cash flow, and the outputs investors actually want to see. No fluff, no training course upsell.
Selling your agency could mean a six-figure tax bill if you get it wrong. Business Asset Disposal Relief (BADR) cuts your Capital Gains Tax to 18% on the first £1m of qualifying gains. Here's exactly how it works and what you need to do before you sell.
The 2025 Budget increased Capital Gains Tax on share disposals to 18% (basic rate) and 24% (higher rate). For agency founders planning a sale, this changes the exit calculation significantly. We explain the new rates, how Business Asset Disposal Relief still works, and what to do before you sell.
Earn-out structures are common in agency acquisitions, but the tax treatment can vary wildly depending on how they're written. This guide explains the difference between capital gains and employment income, how BADR applies, and what to watch for before you sign.
Earn-out payments in agency sales are common, but their tax treatment depends on how you structure the deal. We explain the difference between capital gains tax and income tax treatment, the impact on Business Asset Disposal Relief, and how to structure your earn-out to avoid a surprise tax bill.
Selling your agency with an earn-out is common, but HMRC treats the deferred consideration differently depending on how the deal is structured. This article covers the tax treatment of earn-outs under current HMRC rules, including capital gains vs income, BADR eligibility, and how to structure the deal to minimise your tax bill.
Selling your agency to an Employee Ownership Trust (EOT) lets you exit completely free of capital gains tax. This guide explains how EOTs work, the qualifying conditions, and whether this alternative exit route fits your agency.
Valuing an agency is part art, part numbers. This guide covers the multiples, EBITDA adjustments, and practical steps UK agency founders need before putting their business on the market.
A management buyout (MBO) lets you sell your agency to your existing leadership team. This guide covers how MBOs work, how they're financed, the tax implications for founders, and what to watch out for before you sign.
A management buyout (MBO) without external funding is possible when you structure the deal around the agency's own future profits. This guide covers earn-out models, deferred consideration, and the tax planning that makes it work for both buyer and seller.
Selling your agency? Due diligence is where deals live or die. This guide walks through the three financial statements buyers demand, the common problems that kill deals, and exactly what to clean up before you invite a buyer to look under the hood.
Business Asset Disposal Relief (formerly Entrepreneurs' Relief) lets you pay 14% Capital Gains Tax for disposals from 6 April 2025 to 5 April 2026 (18% from 6 April 2026) instead of 24%. But the rules are precise. Miss one condition and you lose the relief entirely. Here is exactly what you need to meet, and the traps that catch agency founders out.
The 2025 CGT rate changes mean higher tax on most asset sales, but BADR still gives agency founders a 18% rate on the first £1m of gains. This article covers the exact qualifying conditions, the impact of the new rates, and the planning steps you need to take before you sell.
Selling your agency is the biggest financial event of your career. Without proper planning, HMRC can take 20-40% of your sale proceeds. This guide covers BADR, share structures, timing, and the specific tax traps that catch agency founders.
When you sell your agency, the retainer contracts you've built up are often the most valuable asset. But how HMRC treats that value depends on whether you sell shares or assets, how the purchase price is structured, and whether any of that price is linked to ongoing client revenue. This guide covers the practical tax treatment of transferring retainer contracts in an agency sale.
Selling your agency means transferring its most valuable asset: retainer contracts. But how HMRC treats those contracts affects the tax you pay. This guide covers the practical tax and legal implications of retainer transfers in an agency sale.
When a co-founder leaves your agency, buying back their shares can be the cleanest exit. But get the structure wrong and you both pay more tax than necessary. Here is how to structure a share buyback for a co-founder exit from your agency tax-efficiently.
Selling your agency? The difference between a share sale and an asset sale can mean tens of thousands in your pocket. Here is how each works, what buyers prefer, and why your structure matters.
Selling goodwill when you exit your agency can trigger corporation tax, capital gains tax, or both. The tax treatment depends on how the deal is structured, whether you sell shares or assets, and whether goodwill is recognised as an intangible asset. This guide walks through the rules with worked examples for agency founders.
Valuing a creative agency comes down to one thing: the quality and predictability of your revenue. Here's how retainer income changes the multiple, what buyers look for, and how to prepare for an exit.
A vendor loan note lets you defer Capital Gains Tax on part of your agency sale proceeds. We explain how they work, the tax treatment, and when they make sense for agency founders.
Book a free call. We work with agency founders at every stage, from structuring for growth to exit planning and sale preparation.
Model the CGT and BADR on your agency exit
