After five years of volatility, founders across the creative, digital and tech-enabled agency landscape are quietly re-opening conversations about exits. Some are formally going to market; others are exploring options behind the scenes.
Either way, we’re seeing appetite noticeably higher than it was last year, and it’s not driven by any single factor, but a combination of things.
Firstly, valuations have stabilised. 2023 was defined by uncertainty – multiples compressed, buyers hesitated, and founders didn’t want to sell into a down cycle. That’s definitely shifted.
Pricing expectations between founders and buyers are aligned again. High quality, specialist agencies (think CRM, performance, creator / paid social, data, B2B) are achieving consistent valuations, and buyers are less cautious and more competitive.
This stability removes a major barrier – founders can plan, rather than guess.
Secondly, PE is back to buying, not waiting. PE spent most of the past 18 months focusing on portfolio support rather than new deals, but capital needs to be deployed. Dry powder levels are extremely high, platforms in digital, marketing-tech and agency services are back in acquisition mode. PE buyers want profitable, operationally disciplined businesses. For founders, this means more conversations, more options, and a return to real competitive tension.
Thirdly, the post-pandemic years were some of the toughest for agency leaders. Rising costs, shifting client budgets, margin pressure etc. Many founders have been carrying the load for too long, they’re tired, and more open to de-risking through a partial or full exit. A growing number want a strategic partner to help them to get to the next stage without burning out.
While the macro landscape isn’t perfect, it’s predictable enough to make decisions again. Interest rates are stabilising, client budgets are loosening, and buyers are looking for assets that can benefit from early-cycle momentum. Founders recognise the current moment may be a sweet spot – not overheated, not frozen.
Lastly, AI is accelerating consolidation. Niche capabilities that were “nice to have” are becoming essential. Think data & analytics, CRM and retention, performance and social, creator commerce, and Martech implementation. Many founders feel they either need more scale to compete, or a partner who can invest into the next evolution of their service offering.
The bottom line – founders aren’t rushing for exists because of fear, they’re doing it because the market finally makes more sense and the macro environment has opened a window. For many agency owners, now looks like the first genuinely attractive moment to explore their options in years.
Get in touch with our team at WY Partners to discuss your options and the best route to market at hello@wypartners.com.
