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    5 Replies Latest reply on Feb 21, 2008 7:56 AM by LUCKIEST

    Buying a print media business

    jesscharb Newbie
      My sister and I are looking to buy an advertising resource guide business that has been in business for about a year and a half. The asking price is $99,000, but the owner only made $25,000 in 2007 and next to nothing in 2006. Obviously the asking price is WAY high, but we are unsure where to start. Anyone have any ideas?
        • Re: Buying a print media business
          LUCKIEST Guide
          Welcome to this web site. Buying a print media business
          Do you have a Lawyer?? Do you know about SCORE??. Score is FREE
          LUCKIEST
          • Re: Buying a print media business
            xenopod Adventurer
            Well profit, revenue, and salary are all separate issues. You need to look at all of those elements before making a decision. There is also a matter of that company's assests like equipment that have value that would be accounted for in their asking price. They should present you with an appraisal of their business or you should seek one before buying. Like Luckiest said you should also have a good lawyer handy to help you review everything before reaching your decision AND to help you act on your decision. Best wishes, good luck, and let us know what you do and how it turns out!
            • Re: Buying a print media business
              jesscharb Newbie
              Yes, I have heard of SCORE. And yes, we have a lawyer. SCORE has been very helpful as far as writing a business plan. We have a lawyer and an accountant ready to go over everything once we make an offer. The company has no assets. It's only source of income is from selling advertising in the guide. Last year there total sales we $83,000. The owner benefit came to $25,000. I have read numerous websites and books, but I am still unsure were to start with our offer, especially in this economy. Any suggestions? Bear in mind it has only been in business for 1 and a half years. Thanks for your answers.
                • Re: Buying a print media business
                  Bemore Adventurer
                  With no assests you are basically purchasing the customer list, if there is one. I would look at a very low initial offer to get the discussion started.

                  What you have to do and what would it cost you to start from scratch? What advantage is there to purchasing this particular business? What would the ideal print business look like if you were going to spend $100,000 purchasing it?
                  • Re: Buying a print media business
                    LUCKIEST Guide
                    Buying a print media business, Thanks for sharing.
                    We still need more input. Like where is this business. City?? and State??
                    Why is this business for sale?? Did you and SCORE come up with estimated profits??
                    Like How long to recoup your investment?? How about local competition??
                    All of the above and more is needed,to help answer your question.
                    LUCKIEST