Screening digital agencies before you buy or invest: eight signals that matter

When an investor or an acquirer looks at a list of agencies, the first screen decides which ones deserve a call. These are the signals that separate a good target from a busy one, and most of them can be checked before meeting anyone.

1. Who the clients are

Named clients, their sectors and how long they have been clients say more about an agency than its portfolio page. A list of well-known brands from five years ago is a different asset from a dozen mid-sized clients served today.

2. Concentration

If one client is a large part of the work, the deal will depend on that client staying. Look at the number of clients and how many sectors they come from.

3. Capabilities that are hard to hire

eCommerce platforms, ERP and CRM integration, data and AI. In Spain, ERP/CRM integration appears in fewer than one agency in five: it is the capability acquirers pay for.

4. The software they implement, and how deep

Working with a platform is not the same as being a certified partner of it. Partnerships bring leads, margins and a relationship with a vendor that can survive a change of ownership.

5. Size and structure

A team of 15 with a second line of management is easier to integrate than a team of 40 that reports to the founder. Size bands are a first filter; the organisation chart is the second.

6. Dependence on the founder

Who sells, who manages the key accounts, who signs off the work. The more of it sits with one person, the more of the price will be an earn-out.

7. Company health

Registry events, changes of ownership or management, capital increases, insolvency notices: in Spain they are public in the commercial registry gazette, with dates. A recent change of ownership or a dissolution notice changes the conversation.

8. Willingness to talk

The best targets are rarely for sale. An introduction that explains who you are and why their agency fits your thesis gets far more answers than a cold message.

The census covers each of these signals in aggregate for every agency of a market, and in full for investor accounts. See what the investor account includes.