▲ 0 r/smallbusiness
I’ve been running a custom web development and digital marketing agency for many years, and I’m starting to think seriously about stepping away.
Here’s the situation:
- We generate about $500k/year in recurring revenue
- The business is very stable and largely runs without my day-to-day involvement
- Recurring revenue covers my salary + all employee salaries
- We have excess team capacity, so most new project work is high-margin profit
The challenge:
- EBITDA is relatively low
- I’m ready to retire now
- I’d need roughly $800k–$1M from an exit to feel comfortable in retirement
- I don’t want to spend another 5–10 years optimizing the business just to get there
I’m trying to figure out what realistic exit options look like given this setup.
Questions:
- Is this the kind of business that can actually sell, or is it more of a “lifestyle business” that doesn’t translate well to a buyer?
- How much does low EBITDA hurt valuation if revenue is stable and mostly recurring?
- Are there creative exit paths I might not be considering?
I’d really appreciate insight from anyone who’s sold a similar agency or evaluated one. What would you do in my position?
u/ArtistChemical4791 — 13 days ago