One weak contract can reduce cash flow—and your exit value.
Agency acquisitions continue to accelerate, and valuations depend on more than just revenue. Provider agreements determine whether your cash flow can withstand due diligence.
Agencies often rely on just a few critical provider contracts. Losing one can materially impact your multiple. Protecting provider agreements isn’t just legal housekeeping. It’s a strategy to optimize your valuation.
Many contracts look solid on the surface, but buried language can override evergreen protections—a flaw that surfaces quickly during a sale.
Ask yourself:
Can your agreements withstand due diligence scrutiny?
Are commissions truly paid for the life of the customer?
Can commissions be reduced or terminated?
Do you have to remain “actively involved” to get paid on renewals?
