The Art of Valuing Your Telecom Agency

The telecom agency business is one of those “boutique” industries where successful agency owners who have been in the business for a while have likely built up an admirable stream of monthly residual income.  But many owners are at a crossroads today – some are fully embracing the need to invest heavily to transform their legacy businesses into next generation, trusted telecom and technology advisors.  Others aren’t sure how to do that, or aren’t interested in making the significant investments necessary to position their agencies as leading-edge digital resources for their customers.  And then there are other owners that are  searching for a way to monetize their years of success in the channel as they plan to sell and eventually exit the business.

Regardless of where they are in their agency’s lifecycle, every owner has a need to understand the value of their business. But determining an accurate value of a telecommunications consulting and service agency is tricky. Unlike many other businesses, an agency’s assets are fundamentally limited to future cash flow of a residual commission stream.  And that cash flow can be severely impacted by a number of factors outside the control of the owner.  So, how can an owner determine a fair price for his/her company, and how can potential purchasers know that . . . .

To access the full article please register below:

We respect your privacy and all submitted information will be considered highly confidential.