Appealing magazine titles do not come onto the market for genuine reasons that often. But this is what prospective buyers are looking for -
a strong title that is profitable, has forecastable future cash flows and is being sold for believable and authentic reasons. Buyers will pay top dollar for a title that is doing well and is being sold grudgingly.
Before selling a magazine title ask yourself these questions:
- Is your title as profitable as it could be - or can you demonstrate that it can realistically become more profitable?
- What does your business offer? (Think about why someone would want to buy the title and where it sits in the marketplace.)
- What potential is there for growth (in circulation/market share/sales/profits)?
- Why are you selling the title?
Grooming your magazine business for sale
Grooming a business before selling it is essential for any organisation - it is amazing how many publishers overlook the importance of this when selling off titles.
Any negative elements of the business should be addressed at this stage. For a full list of the types of issues that can pose a threat to a sale, subscribe to the Business Sale Report. Subscribers can also access details on why it is imperative to be honest with managers at the sale stage of a magazine title.
The online element is a major factor these days, as many publishers can no longer rely on paper sales alone to make their money from a magazine. More on the importance of an online presence can be accessed by Business Sale Report subscribers.
When's the right time to sell?
The timing of your magazine sale is of the utmost important in this buyers' market. Gone are the boom days of the year 2000 when venture capitalists were ploughing their money into all kinds of ventures.
Investors are less likely to take risks in today’s economic climate and Business Sale Report subscribers can read more on how to make sure a magazine title is an attractive and dependable prospect to buyers.
When you have decided the time is right to sell, it is useful to create a clear and realistic selling price to aim for - or at least a range that will be acceptable. For more information on how to form an idea of what your magazine should be selling for, subscribe to the Business Sale Report
Understand your buyers
Understanding where your buyers are coming from is helpful when marketing your magazine title for sale. Business Sale Report subscribers can access details about how to market magazine titles to financial buyers and industry buyers, as the approach is very different for each.
It is worth trying to steer clear of players who may be meeting with you in order to gain information that they can use to improve their own business operations.
As always, ensure that you get the best possible advisors to help you in the process. Not only does this mean a higher likelihood of a sale as they will be able to contact prospective buyers but a professional advisor can give an objective view of the business. What is more, having someone to negotiate on your behalf and flush out timewasters is invaluable and allows you to stay focused.
For specialist tax advice for those selling magazine titles, subscribe to the Business Sale Report and log onto the subscribers section of the website
Example of a profitable niche magazine operator
Although magazine publishing in general is having a tough time right now, London-based Ink Publishing is enjoying record revenues and consistent profits as the world's leading producer of in-flight magazines.
Their £27 million turnover and £2 million plus profits are perhaps also surprising in the view of the reduction in air traffic over the past two years. But the company has grown to dominate its niche through a core focus and the fostering of an attractive business culture.
Find out how they do it by subscribing to the Business Sale Report.
