Tips on Weathering the Storm by Maximizing Your Company's Value
Don't let the current economic situation get you down. Stephen Kerr, an M&A advisor to media companies, says it's time to get your ducks in a row to help build the value of your publishing company.
It goes without saying that times are tough right now for the industry. As the current economic situation grows more grave, publishers are looking for fiscal insights on how to keep their heads above water. With several decades of M&A negotiations and business valuations under his belt, Stephen J. Kerr, president of Business Marketing Consultants, knows how to help. He says that companies who best understand their value, are best prepared for the uncertain times ahead. He spoke with Publishing Executive Inbox about how you can weather the storm, while still creating long-term value for your company.
Get your accounting straight.
"The advice I give a client that's thinking of a sale is the one thing that will prevent any good transaction from happening -- having screwed up finances," Kerr says. "It's a disease of publishers who tend to be journalists and English majors at heart. They neglect the financial planning side. People come to me with a train wreck and expect me to get the train on the tracks when they could have done it all along. Nothing good is going to happen."
Don't cut back on marketing.
"The first thing -- the knee-jerk reaction -- is to cut marketing, because they don't value marketing in publishing," he says. "It's another problem inherent with the publishing trade. They think it's editorial content that's the key, and it's almost never the truth. The biggest mistake is stopping going to trade shows. They cut back on e-mail blasts. They say we can't do this. Do more marketing. While everyone else is pulling back, pick up market share. This is a perfect time to do that."