It is likely that publishing houses of repute must be running their business successfully for many decades solely on the strength of the authors, writers, singer and musicians who make up their clientele. Hence, it is not expected that even the best of publishing houses will have assets worth millions of dollars. Most of the assets that they will have would be intangible in nature and would mostly be restricted to contracts that are in force with them and the various writers, and authors. The more the number of such writers and authors and the higher their reputation, the better the quality of such publishing house would be.
Hence, if you are planning to buy out a publishing house, you should certainly take the services and help of good property valuers. However, it may not be very useful if you look out for conventional real estate valuers who are more experienced in valuing buildings and other such immovable assets. As mentioned above, when it comes to valuing a publishing house, it is the intangible assets that make up the major chunk of the value of any publishing house.
Hence, as valuers it is expected that these valuers should be in a position to come out with valuation based on such intangibles rather than anything else. However, it does not mean that the other immovable assets should be left behind. They should be also valued efficiently using the right methods and tools and the total value of the publishing house should then be established. It certainly is a process that is quite complicated and does take a lot of time and effort.
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 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 a good property valuer 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.
When you are planning to buy a publishing house, you should keep in mind quite a few matters. First and foremost buying a publishing house is not the same as buying a real estate property or other movable and immovable assets. While at the end of the day, there should be some commercial interest in such transactions, the way the commercial interest is found out is different. Here are a few important points that should be kept in mind while buying a publishing house.
First and foremost, a good publishing house may have more of intangible assets than tangible ones. While in a normal real estate buying we pay more attention and importance to the value of the property when it comes to buying a real estate property we pay more attention to the quality of books that are written the popularity of authors and writer who pen such books amongst other things. Seldom do we pay too much importance to the physical assets that the publishing house possesses. While this is indeed not very unimportant, when valuing a publishing house it is intangible that matter a lot rather than the tangibles.
However, it is important for us to understand the need to have a good valuer when you are planning to buy a publishing house. While a property valuer might be able to do the job, it would be better to look for valuers who have specific experience and expertise in valuing intangibles. This is a totally different cup of tea and only a very few property appraisers would be able to do it. Such valuers should also have a reasonably good idea about the accounting systems which will enable them to find out more about terms such as goodwill and so on which are quite commonly used in accounting terminologies.
Apart from intangibles there are of course other routine aspects that should be taken into account while valuing publishing houses. These could include the machineries and properties that they possess, the quality of human resources and the overall financial position of the company just to name a few. You must take trouble to ensure that you are choosing the right professionals as far as valuing a publishing house is concerned.
Valuation is not merely about valuing buildings, movable or immovable assets alone. It goes much beyond this. Amongst the various industries that are flourishing and growing from one level of success to another, there is no doubt that the books, novels and printing industry is one which boasts of turnovers that could be running into billions of dollars across the country. Hence, if you own a publishing house, this article might interest you particularly if you are keen on knowing more about the valuation part of your business.
Every business needs to find out every now and then regarding it actual worth in the market place. If you are running a company and have your shares listed on the country’s stock exchange the prices at which your scripts are trading is a rough indicator about your true worth. However, this is just one part of the information because it looks at the value purely from the shareholders’ perspective.
But when you are planning to buy or sell a publishing house, you should always avail the services of a property valuer. He is a professional who can understand the finer elements about placing the right value of your publishing house. Unlike valuing a real estate property, when you are valuing a publishing house it may not be all about buildings, bricks and mortars. Though they might own some real estate properties of their own, this might be just a small part of their entire worth.
Their valuation would depend on the quality of authors and writers that they have in their fold. It would depend on the revenues that they have generated by selling their publications. It would also depend on the kind of royalties that they are able to pay to their authors and the network that they possess in ensuring that all the books, magazines and other publications reach as many customers as possible.
There are two important entities that are very important for any good and successful publishing company. First and foremost, it is important to look for customers who are the backbone for which any publishing company is set. The next important persons who need to be kept in mind are the writers and authors who pen thousands of books during their entire life time. The main job of a good publishing house is to bring together both these entities and make them get good value for money. For a customer, he gets good value for money when he gets the right information and knowledge from a good book written by a good author.
It is expected of the publishing company to enable good writers who are making a beginning in their writing career be given a fair chance to showcase their writing skills. It is not all about making money in the first instance itself. If the quality of writing is good, relevant and appealing to some sections of readers, the publishers take up the job of at least allowing free copies to be distributed as a beginning. There could be a cost sharing model between the publishing house and the writers. Once the customers start liking the articles and there is a chance of continuous demand for writings from such authors, then the commercials and other financial aspects could be worked out.
As far as the customers are concerned, at the end of the day they want books, magazines and other such printed news articles that are relevant, interesting and perhaps even useful to make some commercial gain out of it. The onus lies on the publisher to look for authors and writers who can fit the bill perfectly. They should also be able to understand the impact of the internet even on reading habits. Today, there are thousands of internet readers who are more comfortable reading electronic books rather the printed paper-back or hard-back editions. Hence, this point should also be kept in mind as far as good publishers are concerned. In fine, it is the job of good publishers to act a dependable and useful bridge between the writers, authors and the customers who continue to be the king at all points in time.