In this episode of Agency Habits, Peter Kang interviews Sei-Wook Kim on the inner workings of agency acquisitions and valuations at Barrel Holdings. They break down the exact criteria they use when evaluating whether to acquire an agency and explain the logic behind their valuation framework: what increases the price, what brings it down, and how seller goals shape the final deal.
If you're building an agency with the intention to sell (now or years from now), this episode will help you understand how experienced buyers actually think: what they're measuring, what red flags they catch fast, and what signals a business is built to last.
They also discuss the emotional side of selling, legacy, and the difference between cashing out and compounding long-term value.
Key Moments
1. Why Barrel Holdings pivots between building and buying agencies
2. The evolution of their acquisition criteria and "buy box" parameters
3. How specialization drives both defensibility and higher valuations
4. The critical importance of recurring revenue and client diversification
5. Why proprietary technology can actually hurt agency valuations
6. How seller motivations dramatically impact deal structure and pricing
7. The emotional side of agency sales and preserving legacy
Real Talk Takeaways
1. Recurring revenue and retention unlock higher multiples.
2. Agencies with clear positioning and playbooks stand out fast.
3. Client and lead source concentration are silent risks buyers notice immediately.
4. Founders who've stepped back (and trained successors) are more valuable.
5. Legacy matters. Some sellers will trade upside for story.
Timestamps
00:00 – Welcome to Agency Habits
00:33 – Why buy versus build? The acceleration advantage of acquisitions
02:08 – Inside Barrel Holdings' "buy box" criteria: $2-10M revenue, 15%+ EBITDA
03:23 – How deal size and structure constraints shape acquisition strategy
03:41 – The power of specialization: why niche agencies win
05:14 – Platform plays: riding the growth wave of Shopify and Webflow
05:31 – Top value drivers: what makes agencies worth more
06:44 – The importance of predictable, recurring revenue streams
07:10 – Revenue consistency vs. growth: why stable beats volatile
08:20 – Client concentration red flags: the 15-20% danger zone
09:30 – How agency reputation manifests in organic deal flow
10:08 – Business development diversification: avoiding single-source risk
10:49 – Team retention, margin efficiency, and operational excellence
12:17 – The nuance of employee retention: performance vs. loyalty
12:55 – What's less important: proprietary tech and unsustainable growth
15:44 – How seller goals affect valuation and deal structure
17:14 – Risk pricing: why seller involvement impacts multiples
18:05 – The emotional side: legacy, brand preservation, and life circumstances
20:03 – Wrapping up: the complexity beyond pure numbers
Notable Quotes
"Consistency helps give us the confidence that future years will look like the past years."
"Specialization isn't just for SEO, it's your valuation strategy."
"High revenue with low margin? That's not scale, it's a red flag."
"Legacy isn't soft. It shapes how sellers price the future."
"The emotional story behind the numbers tells us more than the deck ever will."
Links & Resources
Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/
Sei-Wook on LinkedIn: https://www.linkedin.com/in/seiwookkim/
AgencyHabits Website: https://www.agencyhabits.com/
AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/
Barrel Holdings Website: https://www.barrel-holdings.com/
Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Medal of Honor: Stories of Courage
Rewarded for bravery that goes above and beyond the call of duty, the Medal of Honor is the United States’ top military decoration. The stories we tell are about the heroes who have distinguished themselves by acts of heroism and courage that have saved lives. From Judith Resnik, the second woman in space, to Daniel Daly, one of only 19 people to have received the Medal of Honor twice, these are stories about those who have done the improbable and unexpected, who have sacrificed something in the name of something much bigger than themselves. Every Wednesday on Medal of Honor, uncover what their experiences tell us about the nature of sacrifice, why people put their lives in danger for others, and what happens after you’ve become a hero. Special thanks to series creator Dan McGinn, to the Congressional Medal of Honor Society and Adam Plumpton. Medal of Honor begins on May 28. Subscribe to Pushkin+ to hear ad-free episodes one week early. Find Pushkin+ on the Medal of Honor show page in Apple or at Pushkin.fm. Subscribe on Apple: apple.co/pushkin Subscribe on Pushkin: pushkin.fm/plus
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com