The summer is an appropriate time to value and list your media entity for a potential sale

Jul 16, 2024

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

Recent monetary indicators are sending off warning signals that economic activity has steadily increased but that inflation is far from 2%.

Job gains are growing — but for small wage earners — and the goal of the Federal Reserve remains to achieve 2% inflation before they cut interest rates. The current inflation rate average is 3.3% and the biggest increases for most consumers remain in the motor vehicle, housing & auto insurance, and shelter sectors.

According to the CPI report and an analysis of index data by Moody’s based on a three-month moving average, the states with the highest 12-month inflation rates are Florida: 3.9%, Tennessee: 3.8% & Virginia: 3.8%.

Since 2020, for example, prices have soared 20% overall based on data provided by the California Legislative Analyst’s Office. A key component behind the driving up of all costs has been the substantial increases regarding production associated with raw materials and labor expenses.

Higher demand has also contributed to inflation. More impact has been felt by all because of fiscal and monetary policies such as tax cuts, unpopular restrictions, mandated regulations, and interest rates.

The government and Federal Reserve Board are playing a key role in analyzing the economy monthly. Dallas, Detroit, Honolulu, San Francisco, and Seattle are all different but have one thing in common. They are the top five cities in the U.S. that have been hit hardest by inflation. Where you reside matters! How you operate your publishing organization and grow your portfolio does likewise!

As a publishing company executive or key partner to your ownership group, you have to pay attention to the details and respect the present scenario by closely monitoring your print, paper stock inventory, staffing, and operational expenses across the board.

Now is the time to harden your thoughts about taking aggressive cost-cutting measures at your media entity. Consolidate staff, lease less office space, and if necessary, streamline your circulation penetration. Possibly cut back on printing as many editions and supplements as you generally produce.

Restructuring is required in difficult times and securing a fresh 2024 multi-media business plan and/or financial valuation will certainly illustrate how best to economize and make your business more profitable and attractive. Summer 2024 is here and this means global supply chain woes will impact all consumers. Slicing away sections of your editorial content is always a difficult choice to confront so I recommend initially taking a step back, calling my office in New York for independent, professional guidance, and permit our talented team to assist you confidentially with creativity and expertise. Now is not the appropriate time to look the other way. Interest rates will not be dropping anytime soon if at all in 2024. The cost of doing business each day will continue to soar. We can make a difference to you.

Be proactive, sensible, and efficient. We are here to assist and want to be there for you!

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