[TheForge] Lindsay Publications

[Ries Niemi]

Good question.

I would want to have an accountant look at the books with you.
Whats the gross annual sales, and whats the net?
Does he pay himself a salary?
Are there hard assets, and, if so, what are they worth?
Inventory?
Is there an assurance that the printers will keep printing these relatively small press runs?

There are various rules of thumb for different businesses- basically, you dont want to buy a business that doesnt make enough money to pay employees to run it- otherwise, its not a business, its a hobby.

2 to 5 times annual net income is not uncommon as a sales price for small businesses- but it really depends.
Would it be a cash sale, or would they carry a loan?

This affects price, of course.


On Mar 28, 2012, at 8:31 AM, terry l. ridder wrote:

> hello ries;
> 
> i wonder how a person would go about determining the current value of
> lindsay books for the purpose of making him an offer for the business
> and name?
> 
> On Sat, 24 Mar 2012, Ries Niemi wrote:
> 
>> 
>> if this is true, its sad news.
>> But especially with all these free books on the internet, book
>> publishing, especially low volume niche books like Lindsay does,
>> is a losing proposition.
>> 
>> I have a couple dozen Lindsay books, and I especially like the
>> reprints of older tech books from 100 years ago.
>> 
>> I have noticed that Dover, which, like Lindsay, republishes old,
>> out of copyright material, is now starting to include DVD's with
>> some of its books- they figure, for the extra quarter or fifty
>> cents it costs them, it could help sell books.
>> 
>> ries
>> 
>> 
>> 
>> Ries Niemi
>> Industrial Artist
>> www.riesniemi.com
>> 
> 
> -- 
> terry l. ridder ><>
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