Government-Focused Advertising and PR Agency

Advertising and PR agency

Federal and state government clients have stayed with this ad and PR firm through repeated contract rebids since 1996.

Ask $5.45M · Profit $1.45M · 3.8x · DealStream

Worth StudyingOct 23

Label: Worth Studying
Reason: 30 years of repeat government clients, but a 15% margin is too thin, even allowing that media bought for clients may drag it down.

Founded in 1996, with many client relationships spanning multiple contract cycles and re-competes; customer churn runs under 20%.
Management will stay after the sale, which suggests client relationships do not rest on the owner alone.
Serves federal agencies, state governments and private firms, with $1.45M cash flow at a 3.8x asking multiple.

Revenue includes advertising and media buying; if media is pass-through, agency fee income and true margin could differ materially (inference).
Government work is won and lost at re-compete, and no contract dates or concentration figures are given.
Offices on both coasts suggest a partly office-based operation, and no trend or period is stated for the figures.

An agency operator with government contracting experience and capital for a $5.45M deal with a staffed team.

How much of the $9.78M is media pass-through, and what is net agency revenue?
Which contracts come up for re-compete in the next 24 months, and what share of revenue do they carry?
Are both offices leased, and could staff work remotely?

Oct 24Added to Acumen Wire