To Sell or Not to Sell: Lessons from Two Near-Acquisitions with Matthew Strunk
Key Takeaways
- Specialized niche agencies command higher acquisition interest than generalist agencies - buyers value focused expertise
- Keep different business lines legally and financially separate for cleaner due diligence and stronger buyer appeal
- Always require earnest money from potential acquirers before entering due diligence to verify legitimacy
Gray MacKenzie talks with Matthew Strunk about the reality of agency acquisitions - including two deals that nearly closed but ultimately fell apart. Matthew runs three companies: BitMoto (an automotive digital marketing agency), Strunk Media Group (a regional digital agency), and AutoSigma (a marketing automation software platform).
Two Near-Acquisitions and What Went Wrong
Matthew shares candid details about two separate acquisition attempts. In both cases, the deals progressed deep into due diligence before collapsing. The experience was expensive - both in legal fees and in the distraction cost of taking his attention away from running the business during months of negotiation.
One critical lesson: potential buyers were significantly more interested in BitMoto’s focused automotive niche than in the broader Strunk Media Group. Specialization made the business easier to evaluate, easier to value, and easier for acquirers to integrate into their existing portfolio.
Keep Your Entities Clean
A major takeaway from the failed deals was the importance of keeping different business lines distinct. When Matthew’s companies were bundled together, it complicated financials and reduced buyer interest. Separating entities makes each one independently attractive and simplifies the due diligence process.
As Matthew puts it, the legal complexity of even a small agency acquisition rivals much larger deals. Keeping clean books and clear corporate structures from the start saves enormous pain when an exit opportunity appears.
Recurring Revenue Commands a Premium
The conversation reinforces a familiar theme in agency M&A: subscription-based and recurring revenue models are valued far more highly than project-based work. Acquirers want predictable cash flow, and agencies with strong retainer bases or SaaS-like revenue streams attract better multiples.
Building Authority for the Next Chapter
Rather than relying solely on referrals for growth, Matthew is investing in thought leadership through podcasts, video content, and educational material. The goal is to build personal and brand authority that drives inbound interest - both for new clients and for future acquisition conversations that happen on better terms.
Earnest Money as a Filter
One of the most practical pieces of advice: never enter serious acquisition discussions without requiring earnest money upfront. It filters out tire-kickers and ensures the buyer has real financial commitment before the seller invests significant time and legal fees into due diligence.