Fractional CFO for advertising agencies companies
Agencies have an accounting problem most services businesses do not: media pass-throughs. Reporting gross or net of media spend can swing revenue by a factor of three, and holdco and PE buyers will model off whichever number you have not been disciplined about. Retainer-versus-project mix sets the quality of revenue, and senior staff cost as a share of net revenue is the single most-watched margin lever.
We lock down a clean net revenue number and a defensible client-level profitability view, then work utilisation by craft (creative, strategy, account, production), realised bill rate against rate card, and the working capital drag from media-spend float. The forecast is built off client renewal calendars and pitch pipeline.
Flow provides financial modelling, FP&A and fractional CFO advisory to advertising agencies across performance marketing shops, creative and brand agencies, social and influencer specialists, media buying houses and full-service digital outfits. Our startup CFO team builds the net revenue, client profitability and FP&A views holdco and PE buyers expect.
KPIs to track for "advertising agencies" startups
We're very 'KPI-driven' fractional CFOs, and we make sure to monitor the right metrics for your startup.
Net revenue (ex pass-throughs)
Utilisation
Realised bill rate
Retainer vs project mix
Client gross margin
EBITDA margin
Revenue per FTE
Client retention
Client concentration
New business win rate
Headcount
Pipeline coverage
Financial modelling for "advertising agencies" startups
As fractional CFOs, we build KPI-driven financial models that are insightful and easy to maintain.
Financial modelling is both art and science - models must be robust, but also understandable, and useful for both internal planning and VC fundraising purposes. Hire a fractional CFO who knows how to handle both sides of the equation.
Net revenue ex pass-throughs
Media spend, production third-party cost and influencer talent fees stripped out of gross revenue to a clean net revenue number under ASC 606 / IFRS 15 principal-vs-agent rules. Anchors every margin metric against the figure holdco and PE buyers actually model from.
Client-level profitability
Each client modelled with revenue, fee retention, time recorded against scope and a true net margin after senior-staff load. Surfaces the marquee logos quietly losing money and supports the next scope renegotiation.
Utilisation by craft
Creative, strategy, account and production utilisation modelled against target with recovery rate by craft layered on. Shows where staff cost as a share of net revenue is being absorbed and where it leaks into unbilled work.
Retainer vs project mix
Recurring retainers, project work and performance-fee revenue split with their own gross margin and renewal cohort. Reveals the quality-of-revenue mix that drives the valuation multiple at sale or holdco roll-up.
Media-spend float and working capital
Media spend invoiced ahead of media payment terms modelled against the float it generates, with credit-line exposure if a client defaults mid-flight. Quantifies a working-capital line item that is often a quarter of net revenue.
New-business pipeline and pitch model
Weighted pitch pipeline modelled against historic win rate, time to onboard and ramp curve to full retainer. Replaces the principal's gut feel with a forecast tied to actual pitch activity and conversion cohort.
Founders and investors we've worked with
We've supported winning builders across advertising agencies and beyond.
Moburst
As a fractional CFO we performed a confidential valuation of Moburst, a Tel Aviv-based global mobile marketing services company, supporting Elevator Fund's portfolio management.
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BetterQA
We acted as fractional CFO and transaction advisor to BetterQA, an independent software testing house based in Cluj-Napoca, Romania, setting up FP&A and preparing the business for an upcoming M&A process.
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TBô
We acted as fractional CFO to TBô, a Zurich-based tech-enabled DTC male underwear brand, building a bottom-up financial / operating model with cohort-level KPIs and positioning the company for its next venture round.
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Onlogist
We acted as fractional CFO to Onlogist, a Hamburg-based online marketplace for last-mile vehicle transfer, providing confidential valuation guidance and operating model support.
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Marcura
We acted as fractional CFO to Dubai-based Marcura, owner of maritime payroll and B2B payments platform MarTrust, advising on the strategic e-Wallet vendor selection and supporting product/finance integration.
See moreRecent fractional CFO track record
See our fractional CFO and financial modelling experience across advertising agencies and beyond.
Simple pricing
No hidden costs, no complicated long-term contracts. We understand how important flexibility is for advertising agencies startups.
Per month
- Accounting / FP&A tech stack implementation
- Monthly financial statements and reporting pack
- Quarterly board pack with detailed financial analysis (with variance analysis vs. budget, relevant KPI observations etc.)
- Investor-friendly output
Per month
- Everything in Core, plus
- Operating model (via an online platform like Runway or Excel-based)
- Ongoing model maintenance, refining projections, burn/runway management
- Customer cohorts modelling, churn and retention analysis
- LTV / CAC, unit economics analysis
- Cap table management
Per month
- Everything in Grow, plus
- M&A / fundraising support; review of business plan
- Pitch deck preparation
- Investor approach strategy / list building
- Due diligence support and deal negotiation
- Valuation as required and free access to Multiples Pro
Packages shown are illustrative, final pricing is tailored to client requirements.
Explore our fractional CFO offering for similar verticals
We're a specialized fractional CFO to IT services companies.
Our fractional CFO experience spans across all IT services verticals.
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We know tech inside & out.
We provide fractional CFO services to companies operating across the entire tech.
More services
We help you scale by providing fractional CFO advice, through fundraising and a successful M&A exit.
VC fundraising for advertising agencies companies
We help you prepare materials, reach out to investors in our extensive network, negotiate fair term sheets and structure the VC round.
Learn moreM&A for advertising agencies companies
We advise winning tech companies on M&A exits, and over the years successfully executed numerous transactions with both financial and strategic buyers.
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