The changing facets of publishing firms not withstanding there is no doubt that even today there are thousands of publishing companies both big and small. However the way publishing business is done these days have certainly gone through a lot of change. Even around three or four decades ago, printed books were the mainstay of any publishing house. But it is no longer the case today. Changes in the computer, internet and digital technology have now made it possible to read books sitting in the front of the computer. They are referred to as e-books which are now in great demand. Though the conventional book readers and connoisseurs of printed books would no doubt be against these e-books they continue to be in great demand.
Hence there is a change in the way the business is being done now. Apart from books, CDs also continue to be in great demand. These CDs apart from having these e-books also consist of various music albums, films, educational materials, research materials, digital dictionaries, thesauruses just to name a few. Hence, if you are keen on buying out an existing publishing house you must keep these above facts in mind.
Why should one buy an existing publishing house? This is a common question that could keep arising in our minds. The answer is quite simple. Given the intense competition that we have today, it is quite likely that even the most successful publishing companies may reach a plateau over a period of time. Under such circumstances it might become necessary for such companies to think of growing the inorganic way. This is nothing but finding out ways to buy out existing publishing companies using the synergies of both the companies to further the growth prospects.
However, buying out an existing publishing company is not an easy job. There are a number of factors to be taken into account. Today an up and running publishing company would cost thousands or even millions of dollars in some cases. Hence, arranging for funds is a big decision that one has to take. But one should be careful even if funds are not a problem. This is because the business that is being taken over should be valued properly and the role of professional valuers becomes important. These professionals will help find out whether it makes sense to buy such companies or whether it will stand the test of time over the medium and long term.
Reading books, listening to music and looking at other sources of information without any doubt has been a habit for human beings for the past many centuries. The only thing that has changed is technology. In the good old days, music was listened either on those discs or in cassette players. But now music is available in the digital format and can be downloaded or uploaded on to the internet. Further the storage medium that was used for storing music and other useful information was quite big and bulky. Today, much more information and quantity of music can be stored in much smaller storage devices. While the habit of reading books in paper back or hard bound editions still continues to be there, there is a discernible shift towards e books because of it convenience factor. There is no need to segregate separate storage space for the books which can be stored in the computer hard disk or other internal and external storage devices.
While all this is fine, as long as there is demand for music, books and other pieces of information there will be a business opportunity for publishing houses. Today, there are thousands of publishing houses across the world which makes lot of money publishing books, music, songs, speeches, and other such important pieces of elements. The main job of these publishing houses is to act as an intermediary between the originators of various music albums, books and the end customers. They stock the various music albums, books and other articles which are in demand from the customers. They sell it to their retail, wholesale and other outlets and it reaches customers at the end of the day. These music albums and books are also sold by these publishers on the internet through their own websites.
Now if you are into publishing business and are keen to buy out a publishing house, you certainly will be moving to an inorganic growth mode. This is not a bad idea provided you know how to go about buying these publishing houses. This is not an easy job and you should have the right knowledge and information before moving ahead. You must take the help of a reputed valuer and get some idea about the fair market value of the entire publishing house that youare planning to takeover. Hence, identifying the right property valuer having experience in such types of valuations is very important to say the least.
Before we understand the various benefits and advantages with buying out an existing publishing company, it would be better to have a look at their main roles and responsibilities. The main job of any publishing company is to stock and sell books, music albums, CDs and other such things that are available in the market. Usually these publishers enter into an agreement with singers, musicians, authors and other such professionals. They agree to stock and sell their works for a percentage. Each time a book or music album is sold through the effort of these publishers, a sum of money goes to the authors, singers and musicians as the case may be. While previously, a publisher was known only for selling books and other printed publications, today the term publishing house has a much bigger connotation.
It is about stocking and selling e-books, songs and music in digital format and even other publications from doctors, scientists and many other professionals. Today almost everything is available in the digital format and hence there is no need to physically store them in homes or other such places. Instead just by visiting the publishers’ websites it would be possible to select the required products and have them downloaded to ones system. However, the download facility will be available only when the payment for the same has been made.
Now coming to the benefits of buying out such publishing companies, there are quite a few of them. buying an up and running publishing company is the simplest inorganic way to grow from one level of success to another. Since there will be synergy of purposes and objectives between the two companies, it will in most of the cases work to the benefit of the buyers and sellers.
However, it is very important to go through the various due diligence processes before actually going in for these buyouts of publishing houses. The cost of such buyouts could run into thousands of dollars and therefore one should go through the process carefully before actually going in for it. The pros and cons should be very carefully evaluated and only when it is viable in the long and medium term should one move ahead with it. You must take the services of professional valuers and appraisers for getting the right inputs about such proposed mergers or takeovers.
Though the computer and modern day technologies have redefined the way people go through their reading habits, running a publishing house successfully is quite possible provided you know how to get started, when to get started and where to get started. You could either come out with our own publishing ideas or print some books or even e-books which you feel will attract the customers. Or you could also get licenses of some good authors and publish their books. For each sale you will have to pay the writer and the balance you can keep with you. While starting and running a successful publishing business is not a very difficult task, the challenge lies in moving from level of success to another. This is not as easy as starting a publishing business because of various reasons
Competition is quite tough in this business and many home based publishers are doing quite well and are able to offer their publishing materials at very attractive rates. Under such circumstances the best way forward might be to look at inorganic ways to grow. This is nothing but taking over an existing publishing business and merging it with yours. This will result in synergies and efficiencies of operation that could be beneficial to both the organizations. However, it has to be done carefully and you have to take the help and assistance of various professionals before moving forward.
One such professional whose help is very important is the property valuer or appraiser. They usually have a big role to play when it comes to valuing homes, apartments and commercial establishments. This apart, their role also becomes very crucial when you are planning to buy a publishing house. They not only value the publishing house that is being planned for takeover. They also perform other tasks like evaluating the post-merger scenario and ensuring that such a takeover will be beneficial to both the organizations, their employees, vendors, owners, shareholders and other stake holders. They use various tools and services at their disposal before actually going in for recommendation of such buyouts. Apart from the services of valuers you may also have to employ the services of lawyers and advocates for ensuring that the legal formalities are completed without any hitch and bottlenecks.
Running a publishing house in today’s competitive market is easier said than done. There are a number hurdles and challenges along the way. On the one hand the number of publishers who are in this business have increased by leaps and bounds. Hence, competition has also intensified very much to say the least. On the other hand, there is no doubt that the internet and other means of technology is proving to be an impediment for many small and medium sized publishing houses. This medium is being totally monopolized by the big publishing houses and therefore they are finding it difficult to find a toe-hold on the internet. Taking the above facts into consideration growing organically and that too for an indefinite period of time is becoming very tough. It is therefore not very surprising for publishing companies to find out other ways by which they can continue to grow an sustain their business for a long term period.
Buying out an up and running publishing business is without any doubt on of the options that are being exercised by many publishers. There are certainly some benefits in such buyouts provided they are done in the right manner. It could help both the companies synergize their operations and take on competition in a more focused manner. It will help both the companies look at the long term rather than being focused only for today.
However, buying out a publishing house that is doing reasonably well has to be a well thought out decision. It has to be done after carefully evaluating the pros and cons. It is extremely important to take the services of professionals to evaluate such takeovers. One such professional whose role is extremely important is that of property valuation Company. They have a big role to play in finding out the fair market value of the business that is being taken over. They will also be able to fix a value of both the businesses once the processes is gone through. They will also add a lot of other valuable pieces of information. These could include their way of looking at the prospects of such buyouts over the medium and long term. They will try and plot the revenues over the next few years and find out whether it will be enough to sustain the business.
However, as is the case with other businesses, competition is also increasing in this field. Hence, there is a need to reinvent or reengineer the entire business process to continue being relevant and also to be in a position to counter competition. While there is no doubt that organic growth is the best way forward for any publication house, this may not be always possible. There could be situations where there could be the need for inorganic growth. In other words, inorganic growth is about taking over an existing publication company and merging it with the existing company or forming a new company. This is a commonly used approach for ensuring consolidation of businesses and is considered very effective for taking on competition and also for growing to higher levels of success.
However, taking over an up and running publication house is no easy task. First and foremost it is bound to cost a lot of money. It could run into thousands or even millions of dollars. Hence, it is important to evaluate such takeovers or mergers very closely. All pros and cons should be carefully gone through. Professional help to evaluate such takeovers is very important. When we talk about such professional help the role of valuers, real estate lawyers and attorney and other such professionals always comes to our mind. Valuing an existing publishing house is very important before planning any takeover of buyout. However, not all valuers will be in a position to perform such valuation.
It is therefore important to look for valuers who have specific experience and expertise in this field. They should be able to apply the various methods of valuation that are relevant to publishing houses. It is quite likely that many of these publishing houses will have more of intangible assets than anything else.
Let us therefore over the next few lines try and find out more about the reasons why it might become necessary to buy an existing publishing house. We will also find out more about the various things that important things that should be kept in mind while buying over publishing houses. The organic growth mode is without any doubt the best way for any publishing house to grow and thrive. However, given the competitive scenario in which they are required to operate, it might not be always possible. Over a period of time, it is quite possible that growth will start tapering and will eventually come to a grinding halt. Under such circumstances the next best option is to look for good publishing houses that could be bought over. The synergies and strengths can be used to the benefit of both the organizations.
However, there are a number of things that should be taken into account when buying over a publishing house. First and foremost, it is important to find out whether such a buyout is advisable and sustainable over the long term period. This would call for studying the proposal in great details by various professionals. When we talk about professionals we cannot ignore the growing importance of valuers and appraisers. They have a big role to play not only in valuing the worth of the publishing that is being planned for takeover, but also in giving a direction to the buyers as far as managing the new situation is concerned. It should also be kept in mind that traditional valuers may not be able to perform the job of valuing a publishing house because the parameters of valuation are completely different. For example when you value a property it is more about the location, the size of the property, the condition in which it is and so on. This is not the case when valuing publishing houses where completely different yardsticks have to be applied.
First and foremost, it is important for publishing houses to identify the needs, preference and ways used by new generation customers. Towards this objective, it is imperative for them to not only have a website of their own but also find out ways and means to make effective use of it. The next important point is to network with as many new prospects as possible. Towards this objective, they should make it a point to be aggressively present in social networking sites of repute like Facebook, Twitter, Linkedin, just to name a few. While the above are organics ways and means by which a publishing company can grow from one level of success to another, there could also be the need to adopt inorganic means to grow from one level of success to another.
When we talk about inorganic growth options, the first thing that comes to our mind is takeover of an existing publishing house that is doing reasonably well. However, buying a profitable publishing house is easier said than done. It could call for investing thousands or millions of dollars which may not be very easy to come by. Further, the buyer should be sure that he or she is paying the right price for the publishing house that is being planned for takeover. Towards this objective it is imperative to appoint many professionals, including the best of valuers. The role of real estate and other property valuers is very important when it comes to understanding the fair market value of the publishing house that is being taken over.
Not all valuers will be able to do the job and hence as customers you should be on the lookout for valuation professionals who have experience in valuing publishing houses and other such entities where not much of real estate could be available for valuation.
As a publishing house, you must be aware that buying an existing publishing business, big or small, is indeed a tough task. It is not the same as buying out a house or apartment. In fact valuing a publishing house is a very different ball game and only those valuers who are capable of valuing movable assets would be able to do it. It is quite possible that publishing houses (especially the small and medium ones) will not have much of immovable properties by way of buildings and premises. Their real value will be in the form of agreements with authors and writers for selling rights of their books and articles. Hence, when valuing a publishing house this important fact must be kept in mind.
Further, when you are buying a publishing house, you should always look for those who have rich experience and expertise in this field. They must at least have a few well known authors and writers as their sponsors without which it would be difficult to estimate revenues from them, especially over a longer period.
Experience apart it is also important that they should be in a position to project good revenue over the next 5 to 10 years. In fact it would not be wrong to mention here that most of the valuations of publishing and book companies are valued using the revenue model rather than the cost or selling models. This is because the biggest source of income for these companies would be from the sale proceeds of books that are penned by some reputed and well known authors. Hence, the more the number of authors and writers, the better would the chances of continuous revenue for a long term period.
In fine, it is very important to look for special valuers who have experienced and wherewithal in this field. Though there is no harm in looking for real estate valuers Brisbane for valuing publishing houses, you must be sure that they have the right tools and approaches when it comes to valuing these companies.
There are a number of reasons why it makes sense to buy a publishing house, especially for those who are desirous of moving their business to a higher level of success. The need for buying out publishing house may not be felt in the initial stages of business. This is because the natural growth opportunities will continue to be good provided you are able to play the perfect balancing role between writers, authors and readers. As a publisher the onus is on you to keep looking for new talents because that is how you could reach out to new readers over a period of time. While it is true that new readers will continue to be on the lookout for old authors and their books, this may not continue for an indefinite period of time. Over a time period it is quite likely that growth will stagnate.
That is when you should explore the opportunities of buying out new publishing houses. When doing so, you must keep quite a few important factors in mind. First and foremost, you must be sure that the publishing house that you are buying is of repute and has a good collection of books from famous authors. It would always be better to look for publishing houses that have a different set of subjects and different set of authors and books when compared to the ones that he might be having in his own publishing house.
The next important factor is to find out ways and means by which the new publishing house can be valued accurately and fairly. Towards this objective it is very important to take the help and assistance of the good property valuers Melbourne who has a wide experience in valuing assets that are most often intangible in nature. A typical real estate property valuer may not be in a position to do a good job of it because they are more capable of valuing immovable properties like buildings and apartments and perhaps even machineries and other such assets. Hence you should always look for the right property valuer who can do a good job of valuing the publishing house in a fair and transparent manner.
So if you are one of those running a publishing business it is important for you to find out ways and means by which you can succeed and grow in this difficult environment. Towards this objective the role of the internet is something very important that cannot be ignored. You have to understand the changing trends in reading habits and revisit the way you are running your publishing house. You must concentrate your energy equally on both conventional printed books and also e-books. While e-books are mostly popular with youngsters and teenagers, many grownup matured adults would still find it better to read the printed books in the comfort of their bedrooms.
Another important point that should be kept in mind is the need to look into the possibility of buying out existing publishing houses that are doing well. There are many small publishing houses who find it difficult to manage their business because of changing customer needs and preferences. However, their fundamentals are quite strong and they have books written by some of the best authors and writers. Hence, it certainly would make great sense to go in for such buyouts after careful consideration and after performing the required due diligence.
You must without any doubt appoint property valuations Company Perth to take the matter forward. But it may not be right to appoint a conventional valuer who has experience only in valuing real estate buildings and other such structures. Valuing a publishing house requires special skills because there could be very little in terms of immovable assets like buildings and other real estate constructions.