Agency owners don’t often know how much their business is worth. But understanding the value of their business is essential for agencies to make calculated decisions about acquisition and raising capital. This is why professional agency valuation is a must-have. From our last agency survey, we found a greater need for such services between agencies. We have decided to combine the services of Ad World Masters with the expertise of Paweł Kossecki: a finance professor, business evaluation expert, and author of the book “Valuation and Value Creation of Cable TV Operators. Cable Retransmission and Copyright Fees.”
Read on to learn more about our offer, and don’t hesitate to contact us for inquiries.
Why Do Agencies Need An Expert Valuation?
The main reasons agencies need an expert valuation report are:
✅ To make the best decisions about selling, merging with, or acquiring another agency’s shares.
✅ To understand if an IPO is feasible and to price an IPO when going public.
✅ To set a target when raising capital for agency growth.
✅ To create an incentive program for employees.
✅ To introduce Value-based Management, or
✅ For strategic planning.
Ad World Masters will provide a valuation that ticks all these boxes.
How Will Ad World Masters Carry Out The Expert Valuation?
Ad World Masters uses the Discounted Cash Flow Method (DCF) for agency valuation, a method based on the income approach. DCF is the most commonly used standalone valuation model.
The main benefits of the DCF model are:
✅ Its popularity,
✅ Its close correspondence to the market value,
✅ Its suitability for almost all types of agencies,
✅ Its high level of resistance to accounting manipulations, and
✅ The thorough insight it gives into the underlying business.
With the DCF method, we will consider the following important variables:
🎯 Relative market share,
🎯 Gross margins,
🎯 Growth in revenues and cash flow,
🎯 Operational and financial risks,
🎯 Capital structure, and
🎯 Operation standards.
The Expert Valuation Process
The valuation we offer is a manual process based on exchanging information between the agency’s top managers or owners and our expert. It involves taking a dedicated approach to creating a tailor-made agency valuation.
The process takes 3-6 weeks and consists of:
⬇️ Signing the order for the service,
⬇️ 50% prepayment,
⬇️ 1-2 initial video meetings with the expert,
⬇️ Delivering the agency’s financial data to the expert (filling a special form),
⬇️ Answering the agency top manager’s additional questions via email,
⬇️ Delivering the preliminary agency valuation as a presentation,
⬇️ Discussing the agency valuation with the agency and expert in a video meeting,
⬇️ Delivering the final agency valuation as a presentation, and
⬇️ 50% post-payment.
The valuation process usually helps agency owners properly understand what creates value.
As the result of the process, our expert will create your agency valuation report in the form of a 15-20 slide presentation.
Paweł Kossecki: Professor of finance at the Film Production Department of the Polish National Film, Television and Theatre School in Lodz. Tax adviser, ad hoc expert witness, and President of the tax advisory company Kossecki Tax Planning. A leading expert in the valuation of intangible assets.
Kossecki Graduated with an MSc in Engineering from the Warsaw University of Technology in 2000. In 2003, he defended his Ph.D. in Management Sciences at the Leon Kozminski Academy with a thesis entitled “Building Trust in eCommerce.” In 2016, he defended habilitation on the topic: “Valuation and Value Creation of Internet Companies.” Since 2009, he has worked as a professor at the Polish National Film, Television and Theatre School in Lodz. He has worked as a financial analyst for the Media Development Loan Fund (USA), an adviser to the Ministry of Treasure, CFO in heavy industry, and was a member of the Polish Press Agency and Easycall.pl supervisory boards. His scientific research focuses on the valuation of intangible assets, internet and technology companies, and international tax law. Additionally, Kossecki is a certified tax adviser and prepares court opinions as an ad hoc expert witness.
Paweł Kossecki (2015): “Valuation and Value Creation of Cable TV Operators. Cable Retransmission and Copyright Fees”, PWSFTViT, Łódź.
Scientific papers & conference presentations
Paweł Kossecki (2020): Comparison of Telecommunication Markets in Europe using Multivariate Statistical Analysis, Journal of Information and Organizational Sciences, JIOS, vol. 44, no. 2, Dec. 2020, s. 331-344, https://doi.org/10.31341/jios.44.2.8
Paweł Kossecki, Stefan Kossecki (2020): Application of Multivariate Statistical Analysis for Valuation of Copyrights in the Hotel Industry, International Advances in Economic Research, Vol. 26(1), https://link.springer.com/article/10.1007/s11294-020-09773-5, DOI: 10.1007/s11294-020-09773-5
Paweł Kossecki (2019): Valuation in the Sector of New Technologies – Taxonomic Measures and Comparison of Markets, Proceedings of the IEEE 15th International Conference on Informatics, Informatics’2019, 20-22 November 2019, Poprad, s. 204-209, DOI: 10.1109/Informatics47936.2019.9119267
Paweł Kossecki (2019): What is the Value of the Film Copyrights? – An Analysis of Basic Methods of Valuation in: A. Majer, S. Szczepański: Kultura produkcji filmowej: teorie, badania, praktyki, s. 98-112, PWSFTViT, Łódź.
Paweł Kossecki (2019): „Valuation and Comparison of Markets – Sector of New Technologies”, 88th International Atlantic Economic Conference, Miami.
Paweł Kossecki (2017): „Valuation of Copyrights – Copyright Management Organisations Fees”, 84th International Atlantic Economic Conference, Montreal.
Paweł Kossecki, Stefan Kossecki, Robert Pietrusiński (2017): Assessment of Copyright Value in Hotel Industry in Poland: Income Approach, Proceedings of 4th International Conference on Advanced Technology and Management Science, 17-18 September 2017, Shenzhen – China, pages: 194-198.
Paweł Kossecki (2016): „How Much Should Cost the Music? – Assessment of Copyright Value: Taxonomic and Market Comparison approach”, 82th International Atlantic Economic Conference, Washington.
Paweł Kossecki, Krzysztof Kompa (2015): “Valuation of cable operators – decision tree and synthetic measure of development method (SMR) for market comparison”, 80th International Atlantic Economic Conference, 9-11.10.2015, Boston.
Paweł Kossecki, Krzysztof Kompa (2015): “Copyright collecting societies and cable operators – assessment of copyright value”, 79th International Atlantic Economic Conference, 11-14.03.2015, Milan.
Paweł Kossecki (2014): “Valuation of copyrights for law purposes – collecting societies” 77th International Atlantic Economic Conference, 2-5.04.2014, Madrid.