Episode Summary
In this special edition of An Agency Story, Russel sits down with David Tobin, founder of TobinLeff, a mergers and acquisitions advisory firm that has helped over 150 agencies prepare for and execute their exits. With decades of experience building and selling his own agencies before founding TobinLeff in 2010, David offers grounded, practical advice for owners at every stage of the M&A journey.
Episode Highlights:
- Why starting early is the most important (and most overlooked) part of a successful exit.
- The top value drivers that buyers actually care about—and how to strengthen them now.
- How to avoid common financial and legal missteps that can kill a deal at the finish line.
- The two-bite deal structure and how private equity can offer multiple liquidity events.
- The buyer’s perspective: what to know if you’re looking to grow through acquisition.
Agency Info
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Company: TobinLeff
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Guest: David Tobin
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Year Started: 2009
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Employees: 1-10
You only get to sell any company you own one time, so take your time, prep well, and choose the right dance partner.
David Tobin
Key Takeaways
Start with the End in Mind
Selling your agency isn’t just a transaction, it’s a multi-year process. David emphasizes that owners should plan their exit 12–36 months in advance. Why? Because the decisions you make today around profitability, team structure, and client concentration directly impact your valuation later. A well-prepared agency not only gets more offers, it gets better ones.
Understand and Strengthen Your Value Drivers
According to David, buyers assess businesses based on sustainability, transferability, and scalability. These concepts break down into key metrics like:
- Profit margins – 20%+ EBITDA is the gold standard.
- Revenue diversity – Avoid over-reliance on a single client or founder-led sales.
- Team independence – Strong second-tier leadership increases buyer confidence.
- David’s firm even provides a “value drivers assessment tool” to help owners score and prioritize improvements.
- Clean Up Your Books…Now
If your books are designed to minimize taxes rather than showcase profitability, you’re leaving money on the table. Buyers don’t want a forensic accounting project. Instead, present clean, GAP-compliant financials and normalize owner comp early in the process to support a stronger EBITDA valuation.
The Deal Is Just the Beginning
David warns that many owners underestimate the post-sale integration. Whether merging with another firm or rolling up under private equity, the real work begins after the ink dries. Communication with your team and clients, culture alignment, and earnout performance all depend on how well you prepare and vet your buyer.
For Buyers: Don’t Chase a Cheap Deal
If you’re acquiring, David shares critical advice: don’t get emotionally attached to a deal. A good fit involves more than numbers. It includes team compatibility, cultural alignment, and long-term value creation. Cheap deals often hide expensive problems.
Show Notes
- TobinLeff Value Drivers Assessment – Evaluate your agency’s readiness to sell.
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