{"id":220563,"date":"2023-02-08T04:57:02","date_gmt":"2023-02-07T15:57:02","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=220563"},"modified":"2023-02-08T11:06:37","modified_gmt":"2023-02-07T22:06:37","slug":"sell-your-digital-marketing-agency","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/e-commerce\/sell-your-digital-marketing-agency\/","title":{"rendered":"How to Sell Your Digital Marketing Agency"},"content":{"rendered":"\n<p><a href=\"https:\/\/legalvision.co.nz\/corporations\/5-tips-for-selling-your-business-in-new-zealand\/\"><span style=\"font-weight: 400\">Selling a business<\/span><\/a><span style=\"font-weight: 400\"> can be an emotional and challenging step to take. However, you may be ready for retirement or to try new ventures. Therefore, you may find the best move is to sell your digital marketing agency. A business sale is no easy process. That said, you can take vital steps to create a successful sale. This article will take you through the relevant steps to ensure you can more easily sell your digital marketing agency.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Business Valuation&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">To set a reasonable purchase price, you must first assess the value of your digital agency This will help you avoid overstating or understating the price. To value your business, you can hire a third party who will consider:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">your company\u2019s real value;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">solvency; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">the market price at which similar sales are made.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">You can also assess the value yourself by analysing similar offers online. Alternatively, you can use a formula to arrive at an approximate value. All you need to do is multiply your annual earnings before interest payments by 0.5 &#8211; 1.3. The market value of your company may likely be within these values.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Organising Your Documents and Finances<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Potential buyers will want to conduct <\/span><a href=\"https:\/\/legalvision.co.nz\/business-sale-and-purchase\/due-diligence-business-sale\/\"><span style=\"font-weight: 400\">due diligence<\/span><\/a><span style=\"font-weight: 400\"> before you sell them your digital marketing agency. They will aim to view your financial statements, key contracts and business plan to make an informed decision. Hence, before due diligence occurs, you must organise your documents and address any red flags.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">You should ensure you have organised your:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">financial documents;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">contracts;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">property leases;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">employment contracts;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">tax payments;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">salary payments; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">business structuring documents.<\/span><\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--star\">\n    <p>When reviewing your contracts, ideally they should be long-term and robust. If you realise they are close to their renewal date you should aim to renegotiate them before the sale. Often a business with a retainer model can sell for a higher price as contracts will last for 12-18 months. This is attractive as the new owner can focus on growing your company instead of working to secure revenue.<\/p>\n<\/div>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    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Your customers have become used to your brand personality and trust you have worked hard to develop. Hence, you must find a buyer who shares your values and will work to uphold customer loyalty.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">You can ask the prospective buyer about their objectives for your business and what their plans are. Moreover, you can ascertain their motivations to ensure they will appreciate the business you have created.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">You can negotiate with interested buyers a letter of intent that outlines:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">what they are willing to pay;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">confidentiality;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">the length that the intent will last; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">a <\/span>statement that the <span style=\"font-weight: 400\">document is non-binding.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">You can review the letter of intent to gauge whether your intentions match the buyers. If not then you can negotiate the clauses to come to a compromise.\u00a0<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Leasing Considerations<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">This is relevant where you have operated your digital marketing agency from an office. When selling your business, you will need to confirm whether your lease can be transferred to the new owner. Firstly, discuss your intentions with your landlord and obtain their consent. Thereafter, your landlord may require your buyer to provide them with documents including:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">financial statements;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">CV; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">business plan.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Once the landlord is convinced your buyer can handle the lease obligations you can start preparing a <\/span><a href=\"https:\/\/legalvision.co.nz\/property-and-leasing\/how-to-assign-a-commercial-lease-in-new-zealand\/\"><span style=\"font-weight: 400\">deed of assignment <\/span><\/a><span style=\"font-weight: 400\">with your lawyer. This document will transfer your lease to the buyer by outlining:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">parties;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">landlord\u2019s consent;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">buyer\u2019s consent;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">your consent;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">what is being transferred; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">lease terms.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Handover<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Your marketing agency may have specific processes and methods to attract and capture clients. Additionally, your company may have automated systems that drive operations. Therefore, depending on your buyer\u2019s needs and previous experience, they may require that you provide them with a comprehensive handover. This obligation may be informal or a negotiated term in the sale purchase agreement.<\/span><\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>If you plan on offering training you need to outline what training you will provide and how long in your sale and purchase agreement. Moreover, you must determine whether you will train the buyer before or after the purchase is completed.<\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">Training can include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">marketing;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">customer service and management;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">lead generation;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">technology stack;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">employee management; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">system use.<\/span><\/li>\n<\/ul>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/10\/21140438\/NZ-Startup-Manual-251x360-2.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">NZ Startup Manual: A Legal Handbook For Founders<\/div>\n            <div class=\"body-text\">\n                <p>Essential reading for anyone building their startup. This free guide includes practical advice and seven real-life case studies.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/NZ-Startup-Manual.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Selling your digital marketing agency can be a tough but beneficial decision. To ensure a successful business sale you should ensure you correctly value your company. Secondly, preparing for due diligence is essential meaning you need to organise your legal documents and finances. Thirdly, prospective buyers should match your objectives and visions for the business. Fourthly, you must consider whether the lease can be transferred to the potential buyer and whether the buyer would like training.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help selling your marketing agency, you can contact our experienced <a href=\"https:\/\/legalvision.co.nz\/business-lawyers-lp-new-zealand\">business lawyers<\/a> to assist as part of our LegalVision membership. You will have unlimited access to lawyers who can answer your questions and draft and review your documents for a low monthly fee. Call us today at\u00a0 <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.nz\/membership\/\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.\u00a0<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1675785312957\"><strong class=\"schema-faq-question\"><strong>How can I value my digital marketing agency?<\/strong><\/strong> <p class=\"schema-faq-answer\">You can value your agency through a third party or use approximate it yourself with an earnings formula.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1675785334748\"><strong class=\"schema-faq-question\">What are the handover requirements?<\/strong> <p class=\"schema-faq-answer\">This is a matter of negotiation between you and the buyer. <\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"3bc3beddae\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/220563\" \/>            <input value=\"https:\/\/legalvision.co.nz\/e-commerce\/sell-your-digital-marketing-agency\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How to Sell Your Digital Marketing Agency\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Selling a business can be an emotional and challenging step to take. However, you may be ready for retirement or to try new ventures. Therefore, you may find the best move is to sell your digital marketing agency. A business sale is no easy process. That said, you can take vital steps to create a<a href=\"https:\/\/legalvision.co.nz\/e-commerce\/sell-your-digital-marketing-agency\/\">Continue reading <span class=\"sr-only\">&#8220;How to Sell Your Digital Marketing Agency&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13316,"featured_media":201765,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"209790,215018,207187,219744,203429,208788","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[6],"tags":[54,57,1770,1771],"class_list":["post-220563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-commerce","tag-medium-business","tag-business-sale","tag-business-disposal","tag-digital-marketing-agency"],"acf":[],"yoast_head":"<!-- This site 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