RodCo Weekly | A profitable Alberta newspaper

 

Price: $850,000

Normalized Cash Flow: $217,000

Terms may available to qualified buyers.

What they do – the short version

  • Source customers wishing to bring attention to mostly commercial ideas to local buyers.
  • Trained employees edit and locally distribute this newsinformation along with other items of interest to the local readership.
  • Editing and layout is done by computer.
  • Printing is done by an outside firm.
  • The books are kept in order by a part time bookkeeper.
  • Distribution is through Canada Post or local pick-up
  • Continuous improvement implemented on customer feedback

Summary

RodCo is a profitable Alberta weekly community newspaper that has been publishing for over 10 years. This will be a share sale. Three years of complete financials and an up-to-date equipment list are available to qualified buyers.

Operations

The firm is located downtown in a thriving Alberta community with several contributing economic streams. They are well signed and have excellent customer access with good parking. Shippers also have easy access to their loading doors.

Their downtown location gives them great advantages including customer contact.

RodCo runs with four employees. Two were added to bolster new business. There is only 1 key man and he has a trained back-up.

The seller thinks it takes all hands approximately 6000 hours a year to run their business. Business can certainly be expanded without needing to hire more staff.

RodCo’s present ownership has been able to manage the business so that it is fairly balanced throughout the year.

This business is mostly run by computer and utilizes special programs designed for their industry. They can do most, but not all of their own equipment maintenance. Very little maintenance is required. They schedule two periods of year for this.

RodCo uses a near-by printer for their final product.

The books are kept by a part-time bookkeeper working about 4 hours a week using Quickbooks.

This operation does not have any hazardous materials on hand and has no need for trained safety or first aid folks on staff.

Customer Base

Their customers are their advertisers. Most business is repeat with only about 10 percent from new customers.

Readers get their publication for free via mail or pick-up. Their web site also draws a lot of interest. National studies show over a 60% penetration rate for local community newspapers. This is of great value to advertisers.

Further Information

Three years of financial statements and a complete equipment list is available for qualified buyers.

Management Discussion

Q. Why you are selling?

A-  Getting old, time to retire

Q. In your words, what does the firm do?

A- We are a weekly community newspaper

Q. What functions does the owner perform? What talents will the new owner have to replace when you leave?

A- Management from afar or hands-on, whichever you desire

Q. How long will you stay after the sale to help in the transition?

A- Negotiable

Q. Have the accounts receivable been purged of bad debts? (This will is really a lawyer question).

A- We run approx $120,000 in receivables. How we handle this is matter of negotiation.

Q. Will you agree to a non-competition clause?

A- Yes

Interested? Next steps:

1. Fax / scan the non-disclosure document 
2. Phone discussion
3. Release of financial information
4. Meeting with seller and tour of premises
5. Discussions that may lead to a deal

NOTICE

The information on contained in this document has been provided from sources believed to be reliable. You must seek independent verification of these facts through due diligence before taking any action based on this information.

David Page | An Alberta Business Broker

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