AI Agency Valuation Workbench $168k ARR Benchmark

Annual Recurring Revenue (ARR) $168,000 Monthly Run-rate: $14,000
Seller Discretionary Earnings (SDE) $113,472 SDE Margin: 67.5%
Top Client Concentration 39.3% High Concentration Risk
Est. Valuation (3.2x SDE) $363,110.40 Risk-Adjusted: $326,799.36

📊 Client Revenue & API Overhead Distribution

X: MRR Share | Y: API Expense %

💸 Gross Margin Waterfall (LLM Overhead & Fixed Costs)

Gross Margin: 83.3%

⚡ Client Roster & Contract Tuning

Client Name Type MRR ($) API Cost % Action

🤝 M&A Deal Structuring (Earnout vs Cash)

Cash at Close 70% ($254,177)
Seller Note / Retention Earnout 30% ($108,933)

Earnout is tied to top client retention over 12 months.

Net Estimated Proceeds (Post Risk-Haircut): $326,799.36

📝 Generated Transaction Memorandum

Generating M&A memorandum...

Assigned agency cash flows and valuation haircuts

Read the explanation

Four fixture clients contribute five thousand five hundred, four thousand two hundred, two thousand eight hundred and one thousand five hundred dollars monthly. Total fourteen thousand times twelve is one hundred sixty eight thousand annual revenue. Assigned API charges total two thousand three hundred forty four monthly, or twenty eight thousand one hundred twenty eight annually. Fixed overhead twenty two hundred monthly is twenty six thousand four hundred annually. Revenue minus both costs gives one hundred thirteen thousand four hundred seventy two seller discretionary earnings. At one pixel per thousand dollars revenue measures one hundred sixty eight, combined costs fifty four point five two eight and earnings one hundred thirteen point four seven two. These teaching fixtures omit other expenses and are not verified accounts or a professional valuation. Multiplying those earnings by the selected three point two multiple produces three hundred sixty three thousand one hundred ten dollars forty cents. Top client share is five thousand five hundred divided by fourteen thousand, about thirty nine point two nine percent. The source discounts one percent of value for each concentration point above thirty five. The gap four point two nine therefore discounts about fifteen thousand five hundred sixty one dollars eighty seven cents, leaving three hundred forty seven thousand five hundred forty eight dollars fifty three cents. At one pixel per thousand dollars the headline bar is three hundred sixty three point one one, adjusted three hundred forty seven point five five, and haircut fifteen point five six. The discount and multiple are assumptions, not market comparable or acquisition evidence. The cash slider uses the unadjusted headline value, not the risk adjusted exit. At the default seventy percent cash, cash at close is two hundred fifty four thousand one hundred seventy seven dollars twenty eight cents, and earnout one hundred eight thousand nine hundred thirty three dollars twelve cents. At one pixel per thousand dollars the bars measure two hundred fifty four point one eight, one hundred eight point nine three and their sum three hundred sixty three point one one. They exceed the adjusted figure by the haircut. A top level D three tooltip selection fails before the launch listener registers. Native fields can change visually but client edits, multiple, cash, reset and JSON export remain inert offline. The generated memo, metrics and local storage cannot update; stale visible values are disclosed. No buyer commitment, sale price, financial advice or actual transfer is claimed.

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