Business Exit Planning
Selling a Magazine and Periodical Advertising Business
There are few things as intimidating as selling a business in a sluggish economy. Although it's going to take some work, there is a good chance you can still sell your company at or even above fair market value.
In a down economy, many magazine and periodical advertising business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of magazine and periodical advertising businesses that are actually for sale.
But the good news is that there is still demand for magazine and periodical advertising businesses that present well and offer solid earning potential.
Preparing Your Employees
Business sellers face a dilemma when it comes to their employees. On the one hand, confidentiality is critical for a successful magazine and periodical advertising business sale. If you keep your employees out of the loop too long, it's inevitable that misinformation will filter throughout your workplace. So at some point you will have to resign yourself to the idea of telling some or all of your employees that you have listed the magazine and periodical advertising business on the market. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.
Advantages of Hiring a Broker
Brokers give magazine and periodical advertising business sellers distinct advantages in the marketplace. First-rate brokers are extremely skilled at communicating your company's strengths to prospective buyers. Second, a good business broker is a master at confidentiality locating magazine and periodical advertising business sale prospects and guiding sellers through negotiations. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Understanding Market Timing
Now may be the best time to sell a magazine and periodical advertising business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on magazine and periodical advertising businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. At Gaebler, we recognize the value of timing the sale of your magazine and periodical advertising business. But we think it's more important to properly position your business for current market conditions -- whatever they may be.
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