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Valuations

What Is My Talent Agency Worth?

Natalie McMullen·February 6, 2026·2 min read

Talent agencies and management companies are relationship-driven businesses with attractive recurring commission revenue. In Los Angeles, where the entertainment industry is concentrated, a well-run agency with a strong roster can command significant value — but key-person risk is always a factor buyers will scrutinize.

Typical Valuation Ranges

Most talent agencies sell for 3x to 5x SDE. Larger agencies with diversified rosters and multiple agents trend toward the higher end.

Factors that push toward the higher end:

  • Diversified client roster across film, TV, commercial, and digital
  • Multiple agents generating revenue independently
  • Commission revenue above $1M annually
  • Long-standing client relationships (5+ years)
  • Established studio and casting director relationships
  • Strong representation in growing segments (streaming, branded content, social media talent)
  • Below-the-line or literary departments adding revenue streams

Factors that push toward the lower end:

  • Revenue dependent on one or two key clients
  • Single agent or founder handling all major relationships
  • High client turnover
  • Concentrated in declining segments
  • No signed representation agreements
  • Weak relationships with major studios/networks

Key Value Drivers

Client roster quality is the primary value driver. Buyers look at the depth and breadth of represented talent, booking frequency, and average commission per client. A roster of working actors and creators beats a roster of aspirational talent.

Agent retention — if the founder is the sole relationship-holder with all major clients, the business has significant key-person risk. Agencies where multiple agents have their own client books are worth more.

Commission structure — standard 10% talent commissions create predictable revenue tied to client bookings. Management companies at 15–20% generate higher margins but may have fewer clients.

Signed agreements — formal representation contracts (even if short-term) provide revenue predictability and help with client retention through a transition.

How to Increase Your Value

  1. Develop multiple agents. Transition client relationships so they're held by the agency, not just you personally.
  2. Diversify your roster. Expand beyond one category — add commercial, voiceover, digital/influencer, or literary clients.
  3. Sign representation agreements. Formalize client relationships with written contracts.
  4. Build recurring revenue. Clients with series-regular roles, brand ambassador deals, or ongoing production work provide predictable commissions.
  5. Document your relationships. CRM data on casting contacts, studio executives, and booking history demonstrates the value of your network.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.

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