Buying an IT or digital agency in Dubai.
Service agencies are the purest test of the owner-dependency question. If clients came because they know the founder, and the founder is leaving, the multiple being asked for is fiction. The businesses that command real multiples have contracted retainers, documented processes and a delivery team that clients already deal with directly.
Sector-specific due diligence
Revenue concentration — what share comes from the top three clients. Contract terms: retainer versus project, notice periods, change-of-control clauses. Whether the founder holds the client relationships personally. IP ownership of code and creative produced for clients. Team contracts and non-compete enforceability.
The trap in this sector
Revenue that is really one large client plus noise. Ask for the client-by-client breakdown before discussing price.
Timeline and cost
| Item | Detail |
|---|---|
| Typical price range | AED 200,000 – 5,000,000 |
| Valuation basis | 2–4× annual profit |
| Search and initial review | 2–8 weeks |
| Due diligence | 3–6 weeks |
| Negotiation and documentation | 2–4 weeks |
| Licence transfer or reissue | 2–6 weeks |
| Total, realistic | 2–6 months |
What I do
- Establish what you are actually looking for, in economic terms rather than sector labels
- Source opportunities, including businesses whose owners have not formally listed
- Verify the counterparty before any substantive discussion
- Coordinate due diligence across corporate, financial, operational and compliance workstreams
- Establish early whether the licence transfers, and structure the deal around the answer
- Manage the transaction to completion: documentation, licence, banking, visas, handover
Retainer from AED 15,000/month
Credited against the success fee. Success fee 10% on transactions up to AED 2M (minimum AED 75,000), Double Lehman scale above. Legal, audit and government costs are separate.
Common questions
How much does a IT or digital agency cost in Dubai?
Typically AED 200,000 – 5,000,000, valued at around 2–4× annual profit. The range is wide because the same revenue is worth very different amounts depending on how transferable it is — contracted, recurring income commands a materially higher multiple than income tied to the departing owner.
What should I check before buying an IT or digital agency?
Revenue concentration — what share comes from the top three clients. Contract terms: retainer versus project, notice periods, change-of-control clauses. Whether the founder holds the client relationships personally. IP ownership of code and creative produced for clients. Team contracts and non-compete enforceability.
Does the trade licence transfer with the business?
Not always. Some free zones permit direct share transfer; others require the licence to be reissued or a new entity formed and assets migrated. The answer depends on the zone, the activity and sometimes the specific case — establish it before terms are agreed, not after.
What happens to the staff visas?
Employee residency is sponsored by the company, so a share transfer usually preserves it while a new-entity structure does not — in which case every visa is reissued at cost and on the immigration authority's timeline. For a business with staff this is a material line item sellers rarely raise.
How long does the purchase take?
Two to six months from serious interest to completion. Due diligence takes three to six weeks if the seller's records are in order, considerably longer if not. Licence transfer, banking and visa reassignment add four to eight weeks after commercial terms are agreed.
What is the most common trap in this sector?
Revenue that is really one large client plus noise. Ask for the client-by-client breakdown before discussing price.
Reviewed by Denis Chernikov, Private Client Advisor, nine years in the UAE private client sector.
Describe your matter
Two or three sentences on the substance. I respond within one business day.