SDE-based | 53 closed agency transactions | 2017-2025
This is the most important question in this calculator. Get it wrong and the output is completely off. Performance media agencies often confuse gross billings with net agency revenue.
Performance media agencies (paid social, programmatic, PPC): your gross billings include client ad spend that passes through. Your NET agency revenue is typically 15 to 30% of gross billings.
Net income + owner comp + interest + taxes + D&A + discretionary expenses. What a new owner would earn.
The single biggest non-tier driver. Growing profit earns 3 to 4x multiples.