December 13, 2019  
 
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Selling a Company

 

Selling an Advertising Business

A lot can go wrong during the sale of an advertising business these days. We'll tell you how to keep your sale and your future plans on track.

These days, the small and medium-sized business market is more confusing than ever before. Although there are plenty of entrepreneurs who want to buy an advertising business, capital restrictions are holding them back.
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In today's market, there is still plenty of room for advertising businesses that demonstrate solid earning capacity and a robust market position.

How Much Does It Cost to Sell an advertising business?

In an advertising business sale, pricing is based on a number of factors, including the costs incurred during the sale. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Professional consultations can also represent a significant expense during the course of an advertising business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.

Turning the Tables: Buyer Concessions

Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.

Pre-Sale Checklist

The upfront time you investment in the sale of your advertising business will pay big dividends at closing. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Armed with a realistic timeframe and asking price, you can begin to consult with your broker about the best way to approach likely buyers.

More Exit Planning Articles

Ready to learn more? You may find these additional resources to be of interest.

Marketing an Advertising Business

How Much Is My Business Worth?

How To Choose An Investment Banker

Family Business Exit Plans


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