Selling a Web Design Business

Most web design agencies are valued on the profit a buyer believes will still be there after the founder steps back. Agencies with real recurring revenue from care plans, clear change-order habits, and a delivery lead who can run projects day-to-day usually get stronger pricing than project-only studios. For a quick range, use Rejigg’s free valuation calculator, which also accounts for owner add-backs like one-time software, travel, and personal expenses run through the business.

Most smaller web design agencies get priced off seller’s discretionary earnings, which are the business profit plus the owner’s pay and certain owner-only expenses. Larger agencies with a real leadership layer often get discussed in EBITDA terms, which is profit before interest, taxes, depreciation, and amortization. Either way, buyers will dig into what the owner personally does today, like selling, scoping, or QA, because that work has to be replaced after the sale.

Yes. Many buyers use an SBA 7(a) loan to buy agencies, especially when revenue is spread across multiple clients and the books are clean. Lenders usually want stable cash flow, contracts that explain retainer obligations, and a transition plan that keeps key client relationships steady. If you want to sanity-check affordability, Rejigg’s SBA loan calculator models payments and down payment scenarios.

Split project revenue from ongoing plan revenue, then keep contractor costs categorized the same way every month so margins are believable. Clean up owner add-backs so each one has a simple explanation and a receipt trail where possible. Remove personal spending from business accounts, even small stuff, because it slows lender questions. If you use QuickBooks, Rejigg’s QuickBooks integration can import financials into a structured data room so you are not rebuilding reports for each buyer.

No. Brokers usually charge 5–10% of the sale price for a process you can run yourself with the right buyer access and tools. Rejigg gives you pre-vetted buyers, digital NDAs, direct messaging, a secure data room, and offer tracking, and it’s free for sellers because buyers pay. Start with the Owner’s Guide to preparing to sell.

A clean web design agency sale often closes in a few months, but timelines vary based on how organized your financials, contracts, and access are. The delays we see most often come from missing contractor IP assignments, vague retainer language, and a mess of admin logins across hosting, domains, analytics, and Shopify. Rejigg’s due diligence and closing checklist shows what to gather early so you do not stall mid-process.

Most smaller web design agency deals are asset sales, where the buyer purchases the assets and you keep the legal entity. Stock sales happen less often, but they can make sense if there are contracts or other reasons to keep the entity intact. From an operations standpoint, the key is documenting what transfers cleanly, like domains, hosting relationships, client contracts, code, and templates you own, and contractor agreements. Your attorney and accountant should advise on structure.

A working capital adjustment is a closing true-up for the cash the business needs to run day-to-day. In web design, the debate usually comes from deposits and prepaid retainers, since cash can be in the bank even though the work still needs to be delivered. Buyers want to avoid paying for future payroll twice, and sellers want credit for cash they earned. Be ready to explain retainer billing, revenue recognition, and what is sitting in backlog today.

Most buyers treat prepaid retainers and project deposits as an obligation to deliver future work, even if the cash already hit your bank account. During diligence, they will ask what has been delivered, what is still owed, and whether the retainer scope is clearly limited. Clean invoicing plus a simple backlog view reduces arguments. This is also where a working capital adjustment often gets negotiated.

Buyers want to avoid Day 1 chaos from shared logins and owner-controlled admin access. A clean setup is usually client-owned domains, plus role-based agency access to hosting, Shopify, analytics, tag managers, and email tools. If you are not set up that way today, build an access map by client and migrate away from shared credentials before you go to market. Buyers read this as operational maturity.

Many deals include a defined transition period for client introductions, handoff of quoting judgment, and escalation coverage. The best plans spell out the specific meetings you will attend, which clients you will personally introduce, and the date you step back because “seller available” turns into confusion fast. Buyers also like hearing what you will not do so you do not become the permanent safety net. Rejigg’s transition planning guide helps you structure it.

Most buyers ask for a non-compete in agency deals because revenue is relationship-driven and the seller could rebuild quickly. Terms vary by market and attorney guidance, but the buyer’s goal is time to stabilize client relationships and referral partners under the new owner. You will also often see a non-solicitation clause, which limits actively pursuing former clients or recruiting the team. Expect this as a normal part of the paperwork.

Earnouts pay part of the price later if the business hits agreed targets, often revenue or profit over a set period. In web design, they show up when retention is the big question, like when a few accounts drive most revenue or when the founder is still the main salesperson. If you consider one, define the metric clearly and agree on how project overruns, scope changes, and staffing decisions affect it. Rejigg’s negotiation guide helps you pressure-test the terms.

Yes. Some deals include rollover equity, where you sell most of the agency but keep a smaller ownership stake. Buyers like it because you stay financially aligned, and sellers like keeping upside if the buyer grows the agency. The part to get tight in writing is governance, including what decisions you still vote on, what you do not control, and how distributions work. Also, document your role and time commitment so expectations stay clean.

Some agency contracts restrict assignment, and many smaller agencies have lightweight agreements that do not address it clearly. When assignment is restricted, the practical fix is getting client consent to transfer the agreement, often during the transition window. Plan early because surprise consent requests can spook clients if they feel rushed. Rejigg helps by keeping access controlled with pre-vetted buyers and digital NDAs, so you can time client outreach appropriately.

Most buyers ask for financial statements, revenue by client and service type, copies of care plan and retainer agreements, a contractor list with signed IP assignments, and a clear view of active projects and backlog. They also want an access map for key systems, like hosting, domains, Shopify admin roles, analytics, and tag managers. Rejigg includes a built-in secure data room so you can share documents in stages and avoid emailing sensitive files around.

Run controlled outreach with confidentiality baked in. You want buyers who understand agency delivery, move quickly, and will not leak the opportunity to clients or employees. On Rejigg, buyers are pre-vetted and sign NDAs digitally before seeing sensitive details, and you can message and schedule calls directly in the platform. Start with finding your dream buyer to plan outreach.

In the diligence calls we see, deals usually fall apart for practical reasons: missing contractor IP paperwork, retainers that read like unlimited support, and financials that do not match how delivery really happens. Another common one is admin access chaos across hosting, domains, Shopify, analytics, and email tools. Most fixes are straightforward if you start early. Get the documents together, explain the reality clearly, and use a secure data room to keep it organized.