Phil Palazzo, founder of PALAZZO, discusses various aspects of selling agencies in an interview. He highlights that growth is the most important metric for agency buyers and explains the complexity of due diligence. Phil shares his own experience of selling and buying back his agency twice. He emphasizes finding the best fit with a buyer rather than focusing solely on financial outcomes. Phil also mentions red flags when assessing compatibility between buyers and sellers, including falling asleep during a meeting. He differentiates his investment bank by emphasizing their industry experience and understanding from both sides of the M&A process. Phil advises clients on considering private equity or strategic buyers based on their specific needs and goals. Lastly, he reveals that many companies are not actually ready to be sold due to factors such as inadequate growth or scale.
