Private Equity is back on the table for agency founders, but not in the way you might expect.

SI Global’s latest report on Private Equity in B2B services reveals a market that’s both energetic and evolving. With a 21% year-on-year increase in PE platform investments in 2024, the rebound is undeniable. But dig deeper, and the picture becomes more complex – especially for agency leaders planning a PE journey in 2025.

At Scaled, we work with agency founders navigating growth, investment and exit. Here’s our take on what matters – and how to prepare.

The New PE Playbook: First Money Over Fast Exits

The classic “buy and build” model has taken a back seat. Only 5% of 2024’s PE investments made a bolt-on acquisition in their first year – down from 60% the year before. Instead, funds are prioritising operational discipline and organic growth.

What’s driving this shift?

  • Underperformance in existing portfolios has made refinancing less attractive.
  • A wave of newer, lower-threshold funds are chasing direct entry into the space rather than bolt-ons.
  • The pool of suitable acquisition targets is shrinking – or at least, becoming harder to justify in today’s more cautious deal environment.

The upshot? If you’re eyeing PE investment, expect deeper scrutiny and a stronger focus on your ability to scale without needing M&A fuel.

Valuations Are Holding – But You’ll Need a Tech-Enabled Edge

Despite volatility elsewhere, valuations for high-quality assets are holding steady, especially for agencies that have cracked the code on scalable delivery models. 

Tech-enabled agencies (think: automation, data-driven delivery, recurring revenues) are firmly in the valuation “sweet spot,” often commanding double-digit profit multiples.

Founders looking to maximise exit value should:

  • Invest in margin-enhancing tech – even modest automation can shift your multiple.
  • Systematise delivery – scalability is the name of the game.
  • Shift toward productised or repeatable services where possible.

If your agency is still talent-heavy and project-based, now is the time to evolve.

 

The Market Is Crowded – Choose Your Partner Carefully

There are now over 50 PE houses actively chasing B2B service deals in the lower-mid market. That’s great news for founders – more buyers means more competitive tension. But it also raises the stakes.

Not all funds are created equal. You’ll need to evaluate:

  • Fund strategy (growth vs. consolidation)
  • Time horizon and exit history
  • Sector knowledge and chemistry with your leadership team

This is where early positioning is critical. We’re seeing buyers go deeper and more thorough in diligence. Founders who show up unprepared – or without a clear growth thesis – will struggle to stand out.

🛠️ What Should You Be Doing Now?

If you’re even considering PE in the next 1–3 years, start now. The best exits are engineered, not opportunistic. Here’s what we recommend:

✅ Get your house in order – clean financials, consistent reporting, clear org structure
✅ Stress test your scalability – would growth break your model?
✅ Build your growth narrative – know your edge and where you’re headed
✅ Understand your options – strategic sale vs. PE vs. recap: they all have different implications

🚀 Want to Explore PE for Your Agency?

At Scaled, we help founders plan for growth, prepare for investment, and maximise exit value. If you’re thinking about Private Equity, whether in 2025 or beyond, let’s talk.

And if you haven’t already, download the full SI Global PE report here – it’s packed with insight and real-world data.