Marketing agencies in Illinois are valued at 2x to 5x SDE or 0.5x to 1x annual revenue depending on retainer mix, client concentration, and whether services are generalist or specialized. Digital-first agencies with recurring monthly retainer revenue command the higher end of the range.
Retainer vs. Project Revenue
Recurring retainer revenue is the gold standard for marketing agency buyers. A $1.5M agency where 70% of revenue comes from ongoing monthly retainers is worth materially more than one where 80% is project-based. Project revenue is unpredictable, relationship-dependent, and difficult to underwrite for financing purposes.
Client Concentration Risk
If your top client represents more than 25% of agency revenue, buyers will price in significant concentration risk. Losing that one client post-acquisition could fundamentally change the economics of the business. Diversified client rosters — 20+ clients with no single client above 15–20% — command the best multiples.
Niche digital agencies (healthcare marketing, B2B SaaS, home services) often command premiums over generalist shops because their expertise is harder to replicate and the client relationships are more technical and sticky.