# The Amazon Agency M&A Landscape: Trends, Multiples & What’s Next

## Overview

## Podcast transcript

**Introduction**  
Hi everyone, and welcome to Marketplace Masters, the show where we showcase the latest thinking, insights and strategies from leaders shaping the future of e-commerce marketplaces.

Paul Sonneveld
I'm your host, [Paul Sonneveld](https://www.linkedin.com/in/paulsonneveld/), and today we're diving into one of the most talked-about topics in the Amazon agency space right now, mergers and acquisitions. Whether you're building, buying, or just trying to stay ahead, understanding what's happening in the M&A world is absolutely critical.

And that is why I'm thrilled to be joined by Chris Fryburger, founder of Enreach and the author behind a comprehensive report on Amazon agency investments and acquisitions. We're going to talk trends, buyers, multiples, growth leavers, and the real story behind DealFlow.

## Podcast Discussion

### Key Takeaways for Agency Owners
Chris Fryburger: 
The report itself was really a reaction...there are a number of things that I track on that. And really also my own self wanted to really learn Chat GPT as well, as far as a research tool.  
And so I really did a deep dive using my data, some industry journals and things like that into the space and out came really a document that I then fed back into some other M&A, GPT, some other chatbots as well. And out came a 50-page report out of that was polished. I'm still honestly trying to get my arms around it myself.

### Industry Activity
Paul Sonneveld: 
So how would you characterise the industry at the moment and the level of activity? There was a plethora and a growth of agencies.

Chris Fryburger: 
I think it's fair to say that there was an explosion really coming out of COVID.

### Valuation Multiples
Paul Sonneveld: 
What are the multiples doing? Are they up and down?

Chris Fryburger: 
So, you know, what the slide will show is we're really seeing sort of four buckets of types of agencies, right, or sizes of agencies right now. The largest agency in the space really has about 250 employees. Now there's a big mix as far as overseas and the like going on, but revenue really crossing more like 20 million or so.

### Characteristics Affecting Multiples
Chris Fryburger: 
First and foremost, it's going to be your financials...we want to look for stability there. That also gets to contracts...What does the executive layer look like?

### Types of Buyers
Chris Fryburger:  
First and foremost, I'm seeing other agencies acquire...the second buyer is large traditional digital agencies that have not solved for Amazon yet.

### Deal Structures
Chris Fryburger: 
So, you know, the structures can vary...there is always an earn out involved...

### Exit Preparation
Chris Fryburger: 
...first and foremost are your books, make sure that everything is squared away there. Things like contracts.

### Critical Mistakes to Avoid
Chris Fryburger:  
...going at it alone is probably the one mistake I see the most.

### Audience Questions
Claudio: 
How can this aspect be handled to achieve a successful exit?  
Chris Fryburger: 
...your number two should have some sort of Google golden handcuffs.

## Conclusion
Paul Sonneveld: 
Just to our audience, apologies, we haven't got to all of your comments and questions, but both Chris and I will jump into the comments section on LinkedIn and provide some verbal answers there.

Chris Fryburger: 
At best, I'm Chris at nReach. It's InReach without the I.

## Podcast Links