Your Agency from a CPA’s POV, with Donya Powell.

By |June 20th, 2016|

Episode 37:

Donya Powell has been a CPA and consultant for 23 years in the advertising/marcomm industry. She learned the industry working as a contract CFO for an agency early in her career and continues to serve as a remote CFO for agencies today. She has worked through several merger and acquisition deals with agency clients as she consults with agencies across the US on operations, agency compensation agreements, merger and acquisitions and succession planning.

 

What you’ll learn about in this episode:

  • Misconceptions agency owners have about the value of their agency
  • Donya’s spreadsheet for assessing your financial picture during retirement
  • Understanding your agency’s normalized EBITDA (earnings before interest, taxes, depreciation, and amortization)
  • Factors that severely impact your agency’s value in a negative way
  • What you may need to change in your agency’s books
  • Things on the financial statement that agency owners often ignore that they really need to pay attention to
  • What financials agency owners should be looking at every week, month, and quarter
  • Budgets: can modern, project-based agencies use them?
  • Mistakes agencies make in regards to taxes and tax strategies to take advantage of
  • How to know if your agency is structured as a corporation in the correct way
  • Things to think about when planning the selling your agency
  • Factors that play into an agency sale falling through
  • Things agency owners can do right now to start improving their agency’s financial health with the idea of an eventual sale

 

The Golden Nugget:

“10 years out is not too early to start planning the sale of your agency.” – Donya Powell Click To Tweet

 

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We’re proud to announce that Hubspot is now the presenting sponsor of the Build A Better Agency podcast! Many thanks to them for their support!

About the Author:

For almost 30 years, Drew McLellan has been in the advertising industry. He started his career at Y&R, worked in boutique-sized agencies and then started his own (which he still owns and run) agency in 1995. Additionally, Drew owns and leads Agency Management Institute, which advises hundred of small to mid-sized agencies on how to grow their agency and its profitability through agency owner peer groups, consulting, coaching, workshops and more.

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