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- April 22nd (Wed) 10AM NY
April 22nd (Wed) 10AM NY
Recent Youtube Video
I Cut 80% of My Team and Crossed $1B With AI [link]
Deal Alert: SEO & Performance Marketing Agency With ~$960K EBITDA + 104% YoY Growth
📍 Location: Bangkok
💰 EBITDA (TTM): ~$960K
📈 Revenue: ~$3.8M (3.6x growth in 2 years)
📊 EBITDA Margin: ~25.2%
🌐 Industry: SEO & Performance Marketing (Enterprise Retainers)
🌟 Why This Business Is Great:
✔ Explosive Growth With Real Drivers
This isn’t just “agency growth” from random clients.
Revenue scaled from ~$1.0M → ~$3.8M in ~2 years.
Driven by:
• Enterprise client wins
• Larger retainers
• Long-term contracts
👉 That’s important.
This is not small-ticket churn-heavy revenue.
✔ Recurring Revenue Model (Big Strength)
98–99% of revenue is monthly retainers.
• 40+ active clients
• ~80% retention
• Annual contracts
👉 This creates:
• Predictable cash flow
• High visibility
• Lower reliance on constant sales
For an agency, this is one of the strongest signals you can get.
✔ Strong Margin Expansion
Margins improved from ~3.5% → ~25.2%.
That’s a big shift.
Usually means:
• Better pricing
• Operational discipline
• Efficiency gains (likely AI + process)
Gross margins ~81% → very healthy for this model.
✔ Low Owner Dependency
Founder works only 12–24 hours/week.
Operations handled by:
• Project Manager Team Lead
• Department heads
👉 This is key.
You’re not buying a personality-driven agency.
You’re buying a system.
✔ Anchor Client With Long-Term Contract
A large global retailer signed a 5-year deal (4 years remaining).
👉 This gives:
• Revenue stability
• Strong credibility
• A base to build on
✔ Multiple Growth Levers Already Identified
• Build outbound enterprise sales
• Expand internationally (already started)
• Push AI deeper into delivery
• Add new service lines
• Potential tuck-in acquisitions
👉 Clear path to scale, not guesswork.
⚠️ What a Buyer Needs to Underwrite Carefully:
⚠ Client Concentration Risk
That anchor client sounds great…
But:
👉 How much % of revenue is it?
If it’s too large, that’s real risk.
⚠ Retention Quality
80% retention is solid.
But:
👉 Is churn coming from smaller clients?
👉 Are enterprise contracts truly sticky?
There’s a difference.
⚠ Team Dependency (Hidden Risk)
Low founder dependency ≠ low risk.
👉 Key team members (PM lead especially) matter a lot.
👉 Need to lock them in post-close.
⚠ Agency Model Limitations
Let’s be honest:
This is still an agency.
👉 People-heavy
👉 Execution-driven
👉 Margins can compress if growth is not managed well
AI helps — but doesn’t remove execution risk.
⚠ Growth Sustainability
104% YoY growth is great…
But:
👉 Is it repeatable?
👉 Or was it driven by a few big wins?
🚀 Where the Upside Could Come From:
This is not a turnaround.
This is a scale + optimization play.
Main levers:
• Systemize outbound enterprise sales
• Turn case studies into deal flow
• Expand into new geographies
• Productize parts of the service (AI layer)
• Increase pricing as brand strengthens
Strategically:
👉 Move from “agency” → “platform-like service”
That’s where real multiple expansion happens.
🏷️ Valuation Thinking:
At ~$960K EBITDA:
Typical range for this type of business:
👉 ~3x–5x EBITDA (depending on risk + growth)
Given:
• Strong growth
• Recurring revenue
• Low owner dependency
This likely pushes toward the higher end…
🔍 My Analysis:
This is one of the cleaner agency deals you’ll see. The combination of high recurring revenue, strong margins, and low founder involvement removes a lot of the typical risks that come with this type of business. What stands out to me most is the shift in margin—from low single digits to 25%—which usually signals that the business has figured out how to operate efficiently, not just grow. That said, I wouldn’t treat this as a “set and forget” investment. The real risk sits in execution—team quality, client retention, and how dependent growth has been on a few large contracts. The opportunity, however, is real. With the right operator, this can evolve beyond a traditional agency into a more scalable, system-driven business with higher margins and stronger positioning. I’d look at this as a solid cash-flowing base with meaningful upside, but only if you’re prepared to actively manage and scale it properly.
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Recent Case Study
From a $600K Deal to $5M Revenue [link]
Recent Acquisition Stories:
Zijin Doubles Down on Gold With $2.6B Deal
Zijin Mining is making a bold move to strengthen its position as China’s top gold producer by acquiring a major stake in Chifeng Jilong Gold for $2.6B. The deal gives Zijin close to 26% ownership through a mix of existing shares and newly issued stock. Despite the strategic intent, the market reacted negatively in the short term, with both companies’ shares dropping after the announcement.
💭 My Take
This is a classic scale play in a commodity business where size matters. In industries like mining, bigger players win through better access to capital, operational efficiencies, and long-term control over reserves. The short-term stock drop doesn’t concern me much—it’s often the market reacting to dilution or uncertainty. What matters is that Zijin is consolidating supply and increasing control in a sector where demand (especially for gold) tends to hold strong over time.
If anything, this reinforces a simple lesson for buyers: in fragmented or resource-driven industries, consolidation is one of the most powerful ways to create value. The best buyers aren’t waiting—they’re using size to dominate.
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-Moran Pober
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