Selling a Video Production Business

Most video production companies are priced off seller earnings, then adjusted for how transferable the work is. Valuations tend to be higher when you can separate your true fee from pass-through spend, control revision creep, explain why clients come back, and show the business can run without the founder directing every job. You can sanity-check your range with Rejigg’s free valuation calculator.

No. Brokers usually charge 5–10% of the sale price for packaging, outreach, and process management you can run yourself with the right tools. Rejigg gives you pre-vetted buyers, digital NDAs, direct messaging, a secure data room, and deal tracking, so you can sell broker-free and keep control of the narrative. Start with the prepare to sell guide.

Often yes, as long as the company looks like a stable cash-flowing service business and the books hold up to lender review. In video production, lenders usually dig into customer concentration, founder dependence, and whether reported revenue is inflated by pass-through costs like crew and rentals. You can model payments and down payment scenarios with the SBA loan calculator before you negotiate deal terms.

Add-backs are owner expenses you believe will not continue after a buyer takes over, like personal travel, one-time legal fees, or above-market owner pay. In video production, buyers will question anything that looks like normal job delivery, including crew, gear, travel, or subcontractors that were required to complete projects. Keep add-backs conservative and attach proof next to each line item. Rejigg’s data room makes it easy to share support without long email threads.

Most buyers expect a monthly profit and loss statement, a balance sheet, and enough detail to understand job economics. For video production, that usually includes a project list that separates fee revenue from pass-through costs, plus payroll and contractor spend, so a buyer can see how work is staffed. If you use QuickBooks, Rejigg’s QuickBooks integration can import and organize this faster inside a secure data room.

Buyers usually underwrite a content library as a separate asset with its own risks and documentation. Expect requests for proof you own the rights, a clear revenue history by platform, and an explanation of what is recurring versus one-off. Many “libraries” look valuable until diligence finds missing releases or music licenses that cannot be used for new distribution. Clean rights and clear reporting can add value. Messy rights can drag down the whole deal.

Most sales take months, not weeks. Buyers need time to understand project-based revenue, review contracts, and confirm rights, releases, and licensing practices. Owners move faster when they already have a fee versus pass-through breakdown, a clear repeat-client story, and organized paperwork for recent jobs. Rejigg keeps messaging, NDAs, documents, and offers in one place, so you are not re-answering the same diligence questions. See the due diligence checklist.

Transitions usually center on client confidence and creative continuity. A common approach is a defined period where the seller handles introductions, joins a few key client meetings, and provides high-level creative review while producers and leads run delivery. Buyers often push back on open-ended “call me anytime” arrangements because the company stays tied to the founder. Build a client-by-client handoff plan. The transitioning guide shows a practical structure.

An earnout means part of the purchase price is paid later if the business hits agreed results after closing. In video production, earnouts are common when revenue depends on a few relationships, when the founder is central to selling, or when margins depend on how scope is managed. Push for a metric that matches reality and is hard to game, like collected gross profit from retained accounts. Rejigg’s deal tracking helps you compare earnout-heavy offers side-by-side with cleaner cash offers.

A working capital adjustment is a closing-day true-up for the money tied up in running the business, like unpaid invoices, bills you owe, and prepaid expenses. Video production can get tricky because of client deposits, unbilled work in progress, and third-party costs that land between the shoot date and payment. Buyers want to avoid paying twice for the same value. Before you sign, get clear on what is billed, what is collected, and what costs are already committed.

Usually yes, but buyers mainly care whether the gear helps win work or if it is just sitting on the balance sheet. Expect requests for an inventory list with age, condition, and whether items are owned, leased, or financed. Some strong production companies stay light on gear and rent per job, which can be fine if your pricing supports it and your vendor relationships are solid. Put inventory and depreciation detail in your Rejigg data room so diligence is straightforward.

Agency and white-label revenue can be strong, but buyers underwrite who controls the relationship. If an agency producer can swap vendors next week, the revenue feels less durable than direct-to-brand work. Buyers will ask how often you repeat with the same agency, whether you are in a preferred vendor pool, and what happens when agency staff turns over. Show repeat patterns by agency, not just end-client names.

Buyers focus on documents that control deliverability and liability. That includes client contracts covering ownership and usage, contractor agreements that assign rights to the company, and releases and licensing paperwork tied to specific projects. They also review long-term commitments like studio leases, equipment financing, and software subscriptions. Variation by client or producer is common in production. What matters is having a clear current standard and being able to explain exceptions quickly.

Most buyers will ask for limits on competing and on soliciting clients and key crew for a period of time. In video production, the freelancer and lead bench often matters almost as much as the client list, so non-solicit language can include core contractors as well as employees. The terms should match real life, including the services you do, the geography you serve, and a reasonable timeframe. Put draft language on the table early to avoid late-stage surprises.

Treat client names as sensitive until you know the buyer is real and serious. Many sellers share anonymized concentration and repeat patterns first, then share names later after a signed NDA and a solid first call. Rejigg supports this flow. Buyers are pre-vetted, NDAs are signed digitally, and you control who sees what inside the data room, so you can run a direct process without exposing your book too early.

Look at how certain the money is and how realistic the transition expectations are. Compare cash at close, any seller financing, earnouts tied to retaining accounts, and what the buyer expects from you in the first 3–12 months. For video production, ask how they plan to keep producers, editors, and key freelancers engaged, because delivery talent is part of what clients are buying. Rejigg’s offer comparison dashboard shows terms side-by-side. See negotiate a deal.

Most deal issues come from surprise risk, not the reel. Buyers get nervous when rights and releases are unclear, when margins shrink once pass-through is separated, when revision culture creates unpaid labor, or when the crew bench depends on the founder’s personal relationships. Many of these are fixable with better documentation and consistent processes. Rejigg helps you pressure-test questions early with vetted buyers under NDA, before you are deep into a single deal.