Listing ID: 83257
Business Overview
This newspaper was founded 148 years ago in 1872. News coverage is centered around local events, sports, social meetings, covering a four county market.
The newspaper has a very active web site and strong Facebook site, the website which includes an E-edition of The newspaper is paywall site, Facebook is free and pulling over 8,300 hits.
Financial
- Asking Price: $300,000
- Cash Flow: $59,225
- Gross Revenue: $251,062
- EBITDA: N/A
- FF&E: $5,800
- Inventory: $1,050
- Inventory Included: Yes
- Established: 1900
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:3,400
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
building has large office space that could be divided for rental income
owner will provide training as agreed to purchase agreement
other interest
while there is no direct competition a few other papers are distributed in the market, but are not competitors in advertising
build on the website, perhaps add live broadcast coverage of local sports and events, expand the coverage into the adjoining counties
Additional Info
The company was started in 1900, making the business 122 years old.
The transaction shall include inventory valued at $1,050, which is included in the listing price.
The company has 6 employees and resides in a building with estimated square footage of 3,400 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell operating businesses. However, the real reason vs the one they say to you may be 2 entirely different things. For instance, they may say "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in revenues, or a range of other factors. This is why it is very vital that you not depend entirely on a vendor's word, however rather, use the vendor's solution along with your general due diligence. This will repaint a more sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans in order to cover things like stock, payroll, accounts payable, and so on. Remember that in some cases this can indicate that earnings margins are too tight. Many businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that need to be satisfied or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new clients? Most times, businesses have repeat clients, which create the core of their daily earnings. Certain elements such as new competition sprouting up around the location, road building and construction, and personnel turn over can impact repeat clients and also negatively affect future earnings. One essential thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business often, the better the possibility to construct a returning customer base. A last thought is the general location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Exactly how might the regional median household earnings effect future earnings potential?
