When it comes to building a successful agency, growth is only half the battle. The real win? Building enterprise value (EV) – a business that’s not just profitable, but sellable, scalable and strategically attractive to buyers.

After supporting over 100 agency deals and exits, we’ve identified five levers that consistently separate high-value agencies from the rest. Whether you’re planning to exit in the next 12-36 months or simply want to build a healthier business, these are the drivers to focus on now.

1. Recurring Revenue: Predictable, Defendable and Contracted

Valuation multiples skyrocket when an agency has a solid base of recurring revenue. Buyers are looking for predictability and so are strategic investors. Retainers or long-term service agreements signal stability. That means shifting away from one-off project work and toward retainers or embedded roles wherever possible.

Key question: What % of your revenue is already booked for the next 12 months?

2. Margin Quality: Efficient, Scoped Delivery at 55%+ Gross Margins

Gross margin isn’t just a finance metric, it’s a signal of operational excellence. The most valuable agencies are those with tight scopes, well-defined delivery models and disciplined resourcing.

Hitting 55%+ gross margins shows that you’re not just growing top-line revenue, you’re running a healthy business underneath.

Action tip: Audit your delivery process. Where are you leaking time, over-servicing, or under-pricing?

3. Client Concentration: No Single Client >15% of Revenue

Heavy reliance on a single client introduces risk, and risk reduces value. Buyers want to know that if one client walks, the agency doesn’t go down with them.

Diversifying your client base improves your defensibility and reduces volatility. Think of each new client as not just a revenue boost, but a strategic de-risking move.

Rule of thumb: No client should contribute more than 15% of your annual revenue.

4. Revenue Per Head: £100K+ Is the Benchmark for Scale

This is the ultimate productivity metric. Agencies that consistently generate £100K+ revenue per employee have nailed efficiency, pricing and delivery.

Falling short? It’s a signal that your cost structure, resourcing model, or pricing strategy needs refinement.

What to do: Benchmark yourself regularly and look for smart automation, service productisation, or better pricing to close the gap.

5. The Founder’s Role: The Less Essential You Are, the More Valuable Your Business

Founders who are deeply involved in day-to-day delivery, sales, or client work may be building a profitable job, not a sellable company. Real enterprise value comes when a business can thrive without the founder in the driver’s seat.

The less your agency relies on you, the more scalable, and sellable, it becomes.

Ask yourself: Could your business run without you for 90 days?

Thinking About an Exit? Start Building Value Now

These five levers aren’t just for founders thinking about a sale. They’re the foundations of a healthier, more resilient agency – one that’s attractive to acquirers and easier to run day to day.

Enterprise value is not built in a boardroom three months before a deal, it’s built in the small decisions you make every quarter.

Scaled Managing Partner, Simon Penson, will be diving deeper into this at the Agency Hackers Summit in Ibiza (24-25 September), where he’ll share insight from the M&A frontlines and practical steps for agency founders who want to increase value over the next 1-3 years.