It’s the best season of the year to sell a publication

Sep 30, 2024

If you have considered retiring or selling in the recent past, now would most likely be a smart time to receive an independent financial valuation of your enterprise because it could potentially serve as a guide towards taking your next step.

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

Thanksgiving is around the corner. With so much chaos happening in the U.S. and abroad, you might want to contemplate selling your business at this time or at minimum invest your monies in discovering the proper value of your publication.

As the year is in the final quarter, it is not the appropriate time to sit back and look the other way. Timing is of significance. If you have considered retiring or selling in the recent past, now would most likely be a smart time to receive an independent financial valuation of your enterprise because it could potentially serve as a guide towards taking your next step.

Be measured and prudent — but be realistic!

With the Feds and Chair Jerome Powell at the U.S. Federal Reserve cutting interest rates on Sept 18, 2024, much is apparent.

Borrowing monies for all will become cheaper and investors will shortly resume eyeing acquisitions that present both growth opportunities and strategic advantages for their multi-media conglomerates. It will be challenging when it comes to owning/operating a multi-media entity much like it has been recently.

The dynamics at play are real. The present rate of inflation is at 2.53%. Prices across the board are still high, 21.2% more expensive since the pandemic-induced recession in February 2020.

The economic chills of a presidential election, high inflation, and several international wars are playing a role in how our country meets the daily challenges of containing costs and confronting international discord.

Unemployment is still high with 1.83 million insurance claims as of September 30. The current unemployment rate is 4.2%. The District of Columbia has the highest rate of unemployment at 5.7%, followed by Nevada with 5.5%. Currently, 27 states have unemployment rates lower than the U.S. figure of 4.2%; four states plus the District of Columbia have higher rates. Nineteen states average the same as the U.S. average across all indicators. As of the middle of this month, the agriculture and related private wage and salary industry had the highest unemployment at 11.3%.

Flexibility matters!! Supply chain issues, threats of employee strikes over wages, a total of 458,900 workers participated in a strike last year with the services sector accounting for 397,700, and the overall climate change impact during hurricane season continues to scream out for a chaotic next month or so. The average mortgage loan rates as of September 20 are 6.90% for a 30-year fixed, 5.70% for a 15-year fixed. The average 10-year ARM is 7.44%.

Before we blink, Christmas will be here and this year will be in the history books. As a publishing company executive or key partner to your ownership group, 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.

This is no time to invest in property acquisitions and if you determine you want to re-sign a lease for office space keep it limited in years. If there were to be a financial crash as some have projected, much will go up in smoke – and quickly. Never forget the October 19, 1987, stock market crash.

Analytics are important to focus on. Who wins the presidential election is currently up in the air and the results will impact the stock market and nearly everything else associated with government spending; the Feds adjusting rates and the overall cost of operating a media organization.

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. Focus on sales and generating more cash for your business.

Restructuring is required in trying 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.

As Christmas nears, global supply chain woes will impact all consumers. The devastation caused by the recent hurricanes will impact the U.S. economy for years.

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. 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! Do not hesitate to reach out confidentially. Helping media executives is what we do best!

 

Kevin B. Kamen, president/CEO of Kamen & Co. Group Services LLC, can be reached at his office, 516-379-2797, or cell phone, 516-242-2857. Email info@kamengroup.com