Episode #
Are Agencies Ripe For Rollups? #2618
November 26, 2023

In episode #2618, We delve into the question of whether agencies are ready for roll-ups, the process of acquiring and merging multiple companies in the same industry. We highlight the potential advantages for agencies, emphasizing the benefits of combining customer bases, reducing expenses, and cross-selling services. This strategic approach can result in heightened revenue, decreased churn, and elevated valuations. Despite these potential gains, we caution that agencies experiencing declining profits and harboring unrealistic expectations may encounter challenges in finding suitable buyers. Our prediction is that the market for agency roll-ups will become more favorable, particularly in early 2024.

Don’t forget to help us grow by subscribing and liking on YouTube!

Check out more of Eric’s content (Leveling UP YT) and Neil’s videos (Neil Patel YT) 

TIME-STAMPED SHOW NOTES:

(00:00) Today’s topic: Are Agencies Ripe For Rollups?

(00:35) Small agencies can get 3-4x EBITDA, and large agencies can get 10x+

(01:44) Combining smaller agencies can generate more revenue and savings

(03:20) Cross-selling services between agencies can increase profitability

(04:34) Many agencies are looking to sell due to a lack of leads and high churn

(05:45) Agencies’ valuations and expectations are declining

(06:54) Unrealistic expectations are hindering agency roll-ups

(07:00) The timing for agency acquisitions is getting closer

(07:20) That’s it for today! Don’t forget to rate, review, and subscribe!

Go to https://www.marketingschool.io to learn more!

Leave Some Feedback:

What should we talk about next? Please let us know in the comments below

Did you enjoy this episode? If so, please leave a short review.

Connect with Us: 

Single Grain << Eric’s ad agency

NP Digital << Neil’s ad agency

X @neilpatel 

X @ericosiu

Learn more about your ad choices. Visit megaphone.fm/adchoices

Discover Latest Episodes

Episode
ChatGPT Quietly Switches From Bing to Google
July 14, 2025

In this episode #3004, Eric Siu and Neil Patel discuss the shift from Bing to Google and the Microsoft-OpenAI partnership’s impact on businesses. They cover how marketing agencies are evolving amid ...

Episode
MrBeast’s SaaS Decision – A Mistake?, Pay per Crawl Launches for AI, Listicles Are Back, Why You Need Them for LLMs, How LLMs Will Rank You in the Future, AI Content Farms Are the New Arbitrage?
July 10, 2025

In this episode #3003, Eric Siu and Neil Patel discuss MrBeast's ViewStats and the AI thumbnail backlash, Cloudflare's pay-to-play model, and how LLMs are shaping the future of SEO. They also cover th...

Episode
The Collapse of Jaguar, How Meta Is Buying OpenAI Right in Front of Us, AI Mode vs. Classic Search Data, ChatGPT 5 Will Be INSANE
July 09, 2025

In this episode #3002, Eric Siu and Neil Patel discuss the collapse of Jaguar due to marketing missteps and the importance of understanding core audiences. They dive into Meta's AI acquisitions, compa...