I had breakfast this week with a friend who told me that she had bought a small "old" media company. By old media, I mean something that is printed on newsprint. My friend was able to purchase this company, which has been losing money, for the less than a million plus some back end. In less than 5 minutes she was able to tell me his entire business plan.
- Upgrade the technology so the production department could be reduced significantly
- Change the sales comp
- Build a complementary website
- Ensure the sales team is calling on new accounts (novel concept)
She said that they will be profitable before the end of the year. I have heard a couple of other similar stories recently. While there are always bargains, there are a lot more now. Here's why:
- More companies are losing money and the owners can't fund the losses
- Companies that didn’t invest (in technologies, people, etc) don’t have an infrastructure that reduces costs get especially hammered in a bad economy
- Owners are too beat up from the last 12 months and just want to get out
Who's going shopping?
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