SearchEngineWatch: How Much is a Search Marketing Firm Worth?

Search engine marketing companies - a funny combination of agency-like service providers and technology developers - are starting to find themselves in a seller's market, with larger marketing firms looking to acquire expertise they find hard to grow in-house. SearchEngineWatch took a look at how these firms and others value SEM companies. Not surprisingly, the factors prove to be similar to those used in valuing ad agencies or other service providers: earnings, comparable transactions, discounted cash flow and public valuations.