Upload
truongkhanh
View
215
Download
2
Embed Size (px)
Citation preview
If you have trouble viewing this email press here
You're receiving this email because of your relationship with Cribb, Greene & Associates. Please confirm yourcontinued interest in receiving email from us. You may unsubscribe if you no longer wish to receive our emails.
Montana: 406-586-6621 · Virginia: 434-971-8344 April 2010
Dear Newspaper Executive,
A number of our clients have asked about newspaper values as we move into spring,and we thought it timely to provide the valuation article below. Additional informationon all aspects of publishing company transactions is available on our website atcribb.com.
Current newspaper EBITDA valuationmultiples for mid and small marketpapers at 6x to 7.5xDistressed sales not indicative of current values
Some recent high profile newspaper saleshave created the impression that allnewspaper values are in the basement,which is completely incorrect. While EBITDAmultiples used to value newspapers are wellbelow those of a few years ago, the multiples
have not declined to the level of some distressed sales.
Let's say your neighbor loses his job and is unable to pay hishouse payment. The house goes into foreclosure and is soldfor 50 cents on the dollar compared to expected values. Doesthis mean that your house is worth half as much? Or toexpand that thought, does this mean that every house in theUnited States is worth half as much? Of course not - that sale
The Cribb GreeneTeam
CG&A Team
Contact Cribb Greene
"Our commitment is to dothe best possible job forour client in every aspectof our assignment every
time."
came out of a distressed situation, which reduced the sellingprice. Using a distressed newspaper sale as an example ofthe value of any and every newspaper is absurd.
Cribb, Greene & Associates has closed seventeen newspapertransactions between 2008 and the present - which isbasically the time period of the significant reduction innewspaper values. These transactions include mid and smallmarket daily, twice weekly, and weekly newspapers andclusters.
The average EBITDA valuation multiple in these transactions(excluding four properties that were losing money) was 7.58x.The most recent transactions (2009 to present) had anaverage EBITDA valuation multiple of 6.05x. The range ofmultiples of EBITDA in these transactions was 1.5x to 18.3x.Clearly, both the 1.5x transaction and the 18.3x transactionwere not typical. Seventy percent (70%) of these transactionswere at multiples between 5.5x and 8.6x.
Most of these transactions included some amount of sellerfinancing as conventional bank financing is still difficult toobtain, at least at terms deemed reasonable by newspaperbuyers.
No one can predict where newspaper values will go in thelonger term, but likely they will inch up and stabilize,particularly as bank financing becomes more available.Newspaper appraisals vary by market and publication, andmany factors affect value in addition to the multiple ofEBITDA. More distress sales will probably take place in thecoming year, but these sales do not set the value of allnewspaper properties.
Cribb, Greene & Associates Contact Information:
Montana office:John Cribb, Managing Director104 East Main, Suite 402Bozeman, MT 59715
Marketat a Glance
The market fornewspaper properties is
unsettled to say theleast, and prices rangefrom the value of realestate/hard assets to
EBITDA multiples of upto 8x. Saleability is a
question in manytransactions, as some
newspapers(particularly large,metro papers) may
remain unsold.
The lack of conventionalfinancing is the first
issue stalling the sale ofnewspaper companies.
Seller financing hashelped keep some deals
flowing, but has notbeen common in larger
deals - and can't beapplied to many
newspapers that carry ahigh debt burden.
Mid and small papers -both daily and weekly -are still selling with anumber of interestedparties in the buyer
pool. The transactionsare all over the place in
values, and creativedeal structures arebecoming the norm.
Phone: 406-586-6621 · Fax: [email protected]
Virginia office:Gary Greene, Managing Director1020 Ednam Center, Suite 001Charlottesville, VA 22903
Phone: 434-971-8344 · Fax: [email protected]
A transaction in the 4xto 8x recast EBITDA is
a sensible anddefensible financialapproach, however
some sales are belowthis range.
Cribb Greene Website
Newsletter PDF Archives
APPRAISALBROKERAGECONSULTING
Transaction:Fulton, New York
Valley News
Scotsman Press, one ofcentral New York's largestnewspaper and shopper
publishers as well ascommercial printers, has
acquired the Fulton-basedValley News as well as itscompanion publications,
The Valley NewsAdvertiser and The FultonPatriot, according to GaryGreene of Cribb, Greene
& Associates whorepresented the seller in
the transaction. Therecent acquisition was
completed February 3 andScotsman assumed
operations of the Fultonpublications Thursday,
February 4.
The Fulton newspapershad been owned and
operated for many yearsby Vincent Caravan and
his son Ronald. Thepapers had been in theCaravan family for 38
years prior to theownership transfer.
Transaction:NorthwestArkansas
Newspapers LLC
The publications ofNorthwest Arkansas
Newspapers LLC - theNorthwest Arkansas
Times, Springdale MorningNews, Rogers MorningNews, Benton County
Daily Record, Northwestedition of the ArkansasDemocrat-Gazette and
associated weekly papers- began their new
partnership Sunday,November 1, 2009.
The 50-50 joint venturebetween Stephens Media
LLC and the ArkansasDemocrat-Gazette Inc.was announced Sept. 3
after both parties reportedrevenue losses related to
higher newsprint costs andsluggish advertising salesand after an attempt hadbeen made by Stephensto sell their newspapers.The partnership follows adecade of head-to-headcompetition. The Justice
Department's investigationof the deal was completed
on Oct. 23, clearing theway to proceed. Cribb,Greene & Associatesassisted and advised
Stephens Media in bothits efforts to sell and
merge its newspapers.
Transaction:Roscommon, MI
The Houghton LakeResorter has purchased
assets of the RoscommonCounty Herald-News,
according to John Cribbof Cribb, Greene &Associates, who
represented the Perlbergfamily in the transaction.
The end of an eraaccompanies this issue ofthe Roscommon CountyHerald-News, but it alsosignals the beginning of
another.
The Herald-News willcease publication as of
this issue, publisherRobert Perlberg
announced. The effects ofthe recession on the
newspaper industry led to"a difficult decision that
had to be made," Perlbergsaid.
The Houghton LakeResorter will continue itsmission to provide all of
Roscommon County withcomprehensive news
coverage that has earnedthe paper a reputation asone of Michigan's leadingcommunity newspapers.
The Resorter has been
published continuously for69 years at HoughtonLake, and under the
ownership of the Hampfamily for 48 years. Robert
J. Hamp Jr. was thepublisher from 1961 to1982. Current Resorter
publishers are Thomas W.and Eric M. Hamp.
Transaction:Eagle NewspapersSyracuse, NY and
Albany, NY
Eagle Newspapers,Central New York's award-
winning communityweeklies and Spotlight
Newspapers, the CapitalDistrict's award-winning
weeklies were purchasedOct. 1, 2009 by
Community Media GroupLLC, according to Gary
Greene of Cribb, Greene& Associates, who
represented Eagle Mediain the transaction. Thetransaction includes the
sale of Eagle's eightweeklies in the Syracuse
market, and the sevenSpotlight weeklies in the
Albany market, as well asnumerous niche
publications and websites.
Transaction:Ironwood, MI
Bliss CommunicationsInc., parent company ofGlobe Publishing, LLC,
today announced the saleof the Daily Globe, locatedin Ironwood, Michigan, toa newspaper group based
in Sheridan, Wyoming.John Cribb of Cribb,
Greene & Associates,represented Bliss
Communications, Inc. inthe transaction.
Sidney H. Bliss, Blisspresident, and the new
owners made theannouncement to Globe
employees this afternoon.
Gary Stevenson, presidentof Stevenson newspapers,
and partner Garry Ellis,announced that Joe
Karius, former GeneralManager of Globe
Publishing, has beennamed publisher and
general manager of thenew operating company,which will be known as
Daily Globe, Inc.
Transaction:The Traders
Indiana, Kentucky,Tennessee
The Papers Inc. hasacquired 10 publications in
Indiana, Kentucky andTennessee from the
Trader Corporation ofCanada, according toJohn Cribb of Cribb,
Greene & Associates,who represented the
buyer in the transaction.
Ron Baumgartner,publisher of The Papers,
noted, "The TraderCorporation's several auto,truck and boat magazines,and the classified papers,
have done an excellent jobthrough the years. Wehope to build on theirsuccess in the coming
issues as we welcome thisgroup of publications to
our family of newspapersand magazines."
The acquisitions include:Indiana Trader Showcase,
Wheels & Deals-Auto,Trader Paper and
Peddler's Post; KentuckyCar & Truck; Tennessee
Trader Showcase, Wheels& Deals-Auto, Wheels &Deals-Truck, Wheels &
Deals-Boat, and Trader'sPost.
Transaction:The Trading Post
Chesapeake, VA andRichmond, VA
Dr. John S. deLeeuw,owner and founder of theTrading Post Publications
in Chesapeake andRichmond, Virginia, hassold his publications to
Lancaster Management,Inc. of Gadsden, Alabama,according to Gary Greene
of Cribb, Greene &Associates, who
represented the seller inthe transaction.
DeLeeuw co-founded theTidewater Trading Post in1963 while serving as a
business school professorat Dominion University.The company initiallyserved the Hampton
Roads area of Virginia andlater expanded into the
Richmond market with theMid-Virginia Trading Post
in 1969.
Transaction:The Sun
Green Bay, WI
Bay Media, LLC, asubsidiary of BlueLineMedia Holdings, has
acquired the assets ofGreen Bay Sun, LLC,
Green Bay, Wisconsin,including the weekly
direct-mailed shopperGreen Bay Sun, accordingto John Cribb of Cribb,Greene & Associates,who represented the
seller in the transaction.
Paul Seveska, presidentand chief executive officer
of BlueLine MediaHoldings, said the additionof the Green Bay Sun to
BlueLine Media's portfoliowould solidify the
company's ability to offercost-effective advertising
and marketing solutions tobusinesses in the growingnortheastern Wisconsin
marketplace.
Transaction:Three Daily Papers
Sayre, PA - Milton, PA- Oswego, NY
Transaction:The Daily Planet
Telluride, CO
Telluride's daily newspaper
Transaction:Sentinel & Advocate
Ripley, MS andAshland, MS
Journal Publishing Co.,publisher of the NortheastMississippi Daily Journal,
has acquired the SouthernSentinel in Ripley and the
Southern Advocate inAshland. The Southern
Sentinel has been servingRipley and Tippah County
since 1879 and theSouthern Advocate has
been serving Ashland andBenton County since
1904.
Tim Watson, publisher forboth newspapers, said,"I'm excited about thechange. We have a
talented staff, asevidenced by the 27editorial awards the
Sentinel and Advocatewon in this year'sMississippi PressAssociation Better
Newspaper Contest, andthe 30 MPA advertisingawards the two papers
won this year. The changewill allow us to continue to
offer the best possibleproduct to our readers in
Tippah and Bentoncounties."
Listen to Editor &Publisher
Magazine's MarkFitzgerald and
Jennifer Sabadiscuss theNewspaper
Operations Surveywith John Cribb onthe "Fitz & Jen GiveYou The Business"
Podcast Podcast
Forward email
This email was sent to [email protected] by [email protected] Profile/Email Address | Instant removal with SafeUnsubscribe™ | Privacy Policy.
Email Marketing by
Cribb, Greene & Associates | 104 East Main | Suite 402 | Bozeman | MT | 59715