Background Information
Newspapers have been in existence since 1989. The current owners purchased the business in 2002. Both newspapers operate as Sole Proprietorships. This is an asset sale, with no real estate included as part of the sale. The business is currently run out of the owner’s home and can be easily relocated to a new buyer’s residence.
These are rural newspapers which appeal to a diverse audience in over 40 communities in New Hampshire and Vermont. One newspaper is distributed bi-weekly and the other is distributed weekly. Both newspapers are supported by over 400 advertisers who see the continuing value and reach of rural based newspapers as a targeted source for their marketing messages. The newspapers and their principals are well known and respected in the area, and their reputation is very strong and firmly entrenched.
The Industry
Despite concerns with the state of the newspaper industry in urban environments where many electronic options are available to compete with news presented in ink on paper, the existence of daily and weekly rural newspapers is supported by a more loyal readership and advertising base. Rural newspapers continue to be the primary source of local news, television listings, local sports news, business announcements, and tourist centric information in resort areas. As a primary resource with a loyal following, rural newspapers continue to be a viable advertising venue for local businesses who understand that this media is the best way to reach potential customers located directly within the local community.
The newspapers for sale are primarily distributed in the western White Mountains region of New Hampshire and their outlying foothills extending into eastern Vermont. Circulation for both newspapers is from 10,000 to 13,000 depending up seasonality and the existence of special events in the area.
Primary competitors include a weekly newspaper located on the northern fringe of the subject newspapers’ distribution area and a monthly publication distributed throughout the White Mountains region. Both of these newspapers appeal to a larger demographic and are not as targeted to their distribution area as are the subject newspapers.
Both newspapers have a strong web base with user friendly, visible websites; sophisticated social media presence; very limited receivables with advertisers who are current; and a strong networking presence with local chambers of commerce and White Mountain Attractions.
For further information on the state of the newspaper industry in the White Mountains region of New Hampshire and nationally, contact the following entities:
Lincoln-Woodstock Chamber of Commerce
P.O. Box 358, Kancamagus Highway
Lincoln, NH 03251
603-745-6621
www.lincolnwoodstock.com
Newspaper Association of America
4401 Wilson Boulevard, Suite 900
Arlington, Va. 22203-1867=
571-366-1000
feedback@naa.org
Location
The newspapers are published from the home of its principals. This is a central location from which to publish the newspapers, given the distribution area which is served. This is an extremely portable home based business and can be relocated to any community within or accessible to the existing distribution area, primarily for ease of delivery. The distribution area, as described above, is a very strong market for these types of newspapers as they include loyal local readers as well as second home owners and tourists. The myriad hotels, motels, inns, condominiums, resorts, restaurants, and attractions in the distribution area provide excellent distribution points, with some lodging properties allowing the newspapers to be placed directly inside the rooms.
Physical Condition
The newspaper racks which are included in this sale are in good to excellent condition.
Reason for Selling & Other Facts
The owners are looking to concentrate on another business which they also currently own.
The current owners are willing to stay on and train for two weeks and be available in an advisory capacity during the first few months or so of operation for a new owner, as needed, and as negotiated.
The current owners are willing to sign a non-compete agreement for 10 years and 50 miles, or as negotiated.
Inventory of Furniture, Fixtures & Equipment
100+ Metal Newspaper Racks
Several Large Plastic Newspaper Racks
Inventory
Two Cases of Promotional Mugs
Three Cases of Stationery
Not Included in the Sale
Cash on hand
Business bank accounts
Accounts Receivable
Accounts Payable
Outstanding loans
Any other security deposits and prepaid expenses
Hours of Operation/Employees
This business is in operation as necessary to produce and distribute the newspapers. Both newspapers take, on average, a total of 25 hours per week of production and distribution time, each. The deadline for advertising commitments and materials for both publications are Fridays.
Employees: 1 Sales Subcontractor earning approximately $700/month in commissions
1 Delivery Subcontractor earning $650 per month
Annual Sales Volume
Available to qualified buyers upon signing a Confidentiality Agreement.
Expenses
Expenses seem to be in line with industry averages.
2008-2010 Profit and Loss Statements
Available to qualified buyers upon signing a Confidentiality Agreement.
Ways to Improve the Business
The current owners believe that by expanding the distribution area that revenues will be positively impacted. They have also toyed with the idea of making the bi-weekly publication into a weekly publication which will also have a positive effect on income. Lastly, the owners admit that advertising sales is not a strength of theirs, and feel that this is an area which can be improved greatly with the greatest positive impact on revenues and profitability.
Recommended Listing Price (RLP)
The RLP justification for this business is as follows:
The business has gross revenues of: *
The business has Seller’s Discretionary Earnings of: *
Salable Inventory at Cost: *
Furniture, Fixtures and Equipment: *
RECOMMENDED RLP: $169,900
* Available to qualified buyers upon signing a Confidentiality Agreement.
Ownership Transfer Specifications
The current owners are asking $169,900 total for the business. They are willing to offer financing terms to a qualified buyer, with a substantial down payment.
