Listing ID: 79099
Business Overview
This publication has been in existence for many, many years. The current owner has owned the business for almost 20 years. The newspaper operates as Subchapter S Corporation. This is an asset sale, with no real estate included in the asking price, however the real estate may be available for purchase should a buyer be interested.
This is a weekly rural newspaper with local roots and ownership, operating in the belief that the newspaper belongs to the community and striving to provide the professional journalism and effective advertising that readers and customers have come to expect over the years. Ownership is backed by a dedicated staff of news and sales professionals who put all of their effort into publishing a publication they can be proud of, week in and week out. The publication is supported by over 1000 advertisers who see the continuing value and reach of rural based newspapers as a targeted source for their marketing messages. The newspaper and its principals are well known and respected in the area and are also supported by a readership of over 2600 including mailed and on-line subscriptions and newsstand sales.
The newspaper markets itself through social media, specifically Facebook, where it posts weekly Page 1 stories, breaking news, and sports playoff updates. There also exist trade agreements for ad space, airtime, and print ads with radio, live-streaming, and local events promotion.
Financial
- Asking Price: $249,000
- Cash Flow: $54,883
- Gross Revenue: $480,734
- EBITDA: N/A
- FF&E: $10,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1900
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:3,372
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
This publication is based in northern New Hampshire and is currently run out of a free-standing, 3700 square foot downtown building. The property is owned by the seller of the business and is for sale for $190,000 should a buyer be interested in purchasing the real estate. The seller is also willing to lease the building to a new owner should the buyer not be interested in purchasing the real estate. The community is known as a destination for hikers, snowmobilers, skiers, ATV riders, golfers, fishermen, and all active outdoor enthusiasts. The distribution area is a very strong market for this type of newspaper as it includes loyal local readers as well as visitors. The myriad lodging properties, retail stores, restaurants, and attractions in the circulation area provide excellent distribution points for the publication.
The current owner is willing to stay on and train for up to 30 days, 4-6 hours per day. Seller is also willing to be available in an advisory capacity beyond the 30-day training time, as needed, and as negotiated.
The owner is looking to semi-retire to spend more time with family.
There are three publications which could be considered competition although they all appeal to a different base readership and are supported by different advertisers. This publication prides itself on practicing fair, ethical journalism with high standards for writing and editing. The publication has created longstanding and strong local relationships, both on the news and advertising sides of the business by providing personal service to their clients as well as quality ad design using professional graphic services. The seller believes that their market position and percentage of market share is very strong and believes that just one of the three competitors can actually be considered competition at all, but this business for sale features greater than three times their advertising inches and far superior content and presentation.
Video and digital possibilities are wide open as new product lines for the business. In order to positively impact readership, social media could be used to a greater extent than it is now. Also, as the pandemic winds down, “on the road” advertising sales efforts need to be ramped up. Pricing research should be implemented to create a pricing plan for both advertising rates and cover price, as neither entity has been increased since 2014.
Additional Info
The business was founded in 1900, making the business 122 years old.
The business has 7 employees and is located in a building with approx. square footage of 3,372 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell operating businesses. However, the true reason and the one they say to you might be 2 completely different things. For instance, they may state "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in incomes, or a variety of various other reasons. This is why it is really important that you not count absolutely on a seller's word, but rather, make use of the vendor's response in conjunction with your total due diligence. This will paint a more realistic picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies borrow money so as to cover things such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that profit margins are too small. Numerous businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be fulfilled or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in brand-new clients? Many times, operating businesses have repeat customers, which create the core of their daily revenues. Particular factors such as brand-new competitors sprouting up around the location, road building, and personnel turn over can influence repeat clients as well as adversely affect future incomes. One important point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business often, the greater the opportunity to develop a returning customer base. A final thought is the general area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? How might the regional average home income influence future earnings prospects?
