Determine what your business is worth

Feb 1, 2024

KEVIN KAMEN
President/CEO | Kamen & Co. Group Services LLC

It might just be a good time to consider selling your weekly newspaper or major daily. The financial climate is soon going to change, according to Jerome Powell, the head of the Federal Reserve.

Interest rates on a 30-year fixed mortgage are presently at 7.30% as we are in the first quarter of 2024, and on a 15-year fixed mortgage, you can expect to pay 6.44%.

CD rates, for now, are high at 5.50% with a 13-month deposit. The best CD rates currently available are at 5.75%, according to WalletHub, the popular personal finance site.

Personal loan rates are another story with APR figures between 6.40% and 35.99%.

In March, when the Feds meet again, look for a cut across the board in interest rates — and as the year marches forward — look for more cuts.

CD rates are expected to drop into the 4.5% range on average.

Then we have the angst of a presidential election in November and all the attention and overall awareness of the economy that experience brings us.

There is no question that the timing of selling your print and digital business is both an art and a science. Planning for a secure future is vital, and being smart about doing so matters.

Timing a sale of a media entity you have worked to build and develop over decades is consequential, and it takes thought and consideration from several fronts.
The economy, the market, your personal health, financial situation and the overall current condition of the business you operate should all come into focus.

Are you showing a profit? Are sales going in the wrong direction? Is competition stronger than ever before? Is it becoming more difficult to hire and train qualified staff to fill key positions? Can you develop a compelling reason as to why you should contemplate selling? Must you sell? Has a competitor approached you about acquiring your business? Are you nearing retirement age and seeking to relax and enjoy the balance of your years? Does the thought of travel beckon? Do you want to spend more time visiting with your grandchildren?

I recommend that you initially have your publishing portfolio financially valued by an expert in the media trade.

Determine what the business is currently worth; if the appraisal is done properly, it will have recommendations in the report and explain what steps should be taken to enhance the entity and help to condition it for a potential sale.

Every valuation report should have a standardization grading analysis included, something I created about 30 years back. At my firm, Kamen & Co. Group Services LLC in New York, we provide an independent analysis of what red flags might be glaring at your publishing company and make suggestions of how best to confront them. Are you paying too much for print or distribution? Does your publication lack certain elements both digitally and in print that weaken its overall appeal and attractiveness? What do your Google Analytics look like to a potential buyer? We closely analyze a large array of issues to help bring your attention to them.

Deciding on selling is emotional for many. After all, the portfolio or media entity you operate has been your baby for a long while, and letting go of it is nothing to sneeze at.

It deserves your full attention and thought.

Acquiring a relevant valuation could potentially help you come to terms with selling. Not knowing the value of your business before listing is silly, and you owe it to yourself — and your family — to do the right thing.

So reach out, call me directly and let us speak confidentially. I will explain the process and answer your questions. Then you can decide what is best for you — and when to move forward.

Kevin Kamen is proud to be the expert media financial valuation resource for the Forbes 400 List of America's richest people 10 straight years. Email info@kamengroup.com