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Topic: How to value a mag for purchase
| Author | Message |
| netmon | Posted – 3/18/2008 12:28:26 AM | show profile | email poster If you were interested in acquiring an existing small publication, is there a rule-of-thumb that is used to value it, e.g., 2 1/2 x revenues or some other formula? Thanks. |
| writesonwater | Posted – 3/18/2008 1:06:34 AM | show profile I have heard figures bandied about and they've vary widely. Generally they're based on a number x revenues. Having been up close and personal with people trying to hang a peg on those values, I'd be hesitant to put too much value on a magazine without a long-term track record. The smaller the publication, the more likely people are to just start their own - especially if the other is struggling. Having witnessed the inner workings, I'd also be leary of revenue figures. Small publications often have a VERY narrow profit margin, no matter how impressive "$x00,000 in annual revenues" sounds. |
