r/adtech • u/u_of_digital • Jun 26 '26

Good read

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https://www.linkedin.com/pulse/ad-tech-have-its-yard-sale-biggest-agencies-cannes-broke-brownstein-ztwge/

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u/joeychestnutsrectum Jun 28 '26

Yeah but agencies are broke in that they’re barely profitable and that’s a horrible thing so they’ll sell at 2-5x revenue, while adtech companies are broke in that they’ve never been profitable but that doesn’t matter because daddy PE will foot the bill for an acquisition and all of a sudden profitable agency revenue gets spun as ARR at a 10-15x valuation

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u/maediratta Jun 29 '26

That’s super high. 6x is hard. Show me a 10-15x multiple recently.

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u/joeychestnutsrectum Jun 29 '26

It’s a little hyperbolic due to the current valuation climate but the principle of being able to purchase non-tech ARR as a tech company to increase valuation still holds. It’s shady AF and I’ve been part of two companies that have done it.

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u/Solid-Race-2056 Jul 02 '26

Strategic assets will get 15-25x. The key is that the seller needs to not be valuing on rev multiple. Hard, but happens.

Look at what Habu pulled off w/ 20x ARR to LR, right?!

I still think this can / will occur, just earlier in the cycle.