I get asked about roll-ups all the time.
People come to me excited—ready to buy up digital agencies, scale fast, and create a powerhouse in SEO or digital marketing. And I get it. The logic makes sense: buy smaller agencies at a low multiple, integrate them, and sell at a premium.
But here’s the problem… Most roll-ups fail.
After seeing so many agency founders and investors make the same mistakes, I decided to write this guide. If you’re thinking about rolling up digital agencies (or you’re in the middle of it and feeling overwhelmed), this is for you.
The Biggest Mistake I See: “Buying for the Sake of Buying”
A lot of people think any acquisition is a good acquisition. They chase revenue instead of strategy.
But here’s the truth: a bad acquisition can kill your entire roll-up.
I’ve seen people buy agencies with:
❌ Clients who churn in under 6 months.
❌ Founders who are the business (and leave post-sale).
❌ Messy operations with no processes in place.
These deals look great on paper but end up bleeding cash. So how do you avoid this trap?
The Right Way to Build an Agency Roll-Up
If you want to roll up SEO or digital marketing agencies and actually make it work, here’s the right way to do it.
1️⃣ Picking the Right Agencies to Acquire
Not every agency is worth buying. I tell my clients to look for three key factors:
✅ Revenue Sweet Spot – Look for agencies doing $500K–$5M per year. Anything smaller is a headache. Anything bigger is expensive.
✅ Retainer-Based Clients – If their clients are mostly project-based, run. You want agencies with predictable, recurring revenue.
✅ Owner’s Role – If the agency can’t function without the founder, that’s a red flag. You don’t want a situation where, post-sale, clients leave because they were only there for the owner.
2️⃣ How to Structure the Deals Without Risking Everything
One thing I always advise against? Paying 100% upfront. That’s how you get burned.
Instead, structure the deal like this:
💰 50% upfront cash – Just enough to get the owner to sell.
📈 30% as an earnout – Tied to client retention (if clients leave, you pay less).
🏛 20% in equity – If you’re building a larger brand, roll them into the bigger company.
This way, you:
✅ Reduce your risk.
✅ Keep the owner motivated to transition properly.
✅ Protect yourself from buying a failing agency.
3️⃣ The Integration Phase – Where Most Roll-Ups Die
I see it all the time: people buy three or four agencies and then… nothing works together.
Each team uses different tools.
Each agency has its own way of working.
Clients get frustrated.
The fix? Standardize everything fast:
🔥 Unify project management – Move everyone to ClickUp, Monday.com, or Asana.
🔥 Standardize reporting – Clients should get one style of reporting, no matter which agency they came from.
🔥 Merge departments – You don’t need five SEO leads. You need one great SEO team.
The Exit Strategy – How to Sell for 10x+ Multiples
A typical agency sells for 3–5x EBITDA. But if you do this right, you can exit for 10x–15x EBITDA.
Here’s how to boost your multiple:
🎯 Brand Consolidation – Clients trust one big name, not a bunch of small agencies.
🎯 Long-Term Contracts – The more locked-in revenue you have, the higher the multiple.
🎯 Operational Efficiency – The cleaner your business runs, the more attractive it is to buyers.
💡 Real Example:
I advised someone who bought five agencies at a 3x multiple. After standardizing operations and branding, they sold the combined company at a 10x multiple.
🚀 Buy for $10M → Sell for $50M. That’s how roll-ups win.
Final Thoughts: Will Your Roll-Up Succeed or Fail?
If you remember anything from this article, remember this:
✔️ Buy agencies that fit into a bigger strategy.
✔️ Structure deals with earnouts to reduce risk.
✔️ Integrate fast, or you’ll lose clients and money.
Rolling up agencies can be the fastest way to build a multi-million-dollar business. But it’s also filled with landmines.
💡 Thinking about executing a roll-up? I help investors and agency owners make smarter acquisitions and avoid the common pitfalls.
Let’s talk. 🚀