Advertising and marketing businesses can include an online or digital business or may be involved in print and media. In order to buy an existing advertising or marketing business you should register for alerts so you are notified when a new business is listed. You can then make contact with the seller and request more information. Usually the seller or broker will ask you to complete an NDA to ensure the confidentiality of the business. Buying an advertising or marketing business requires professional advice during the process to ensure the due diligence is conducted properly.
A good advertising business will be well established, have repeat clientele and a healthy profit to the owner. The business should have a regular form of income such as monthly accounts or contracts so there are future sales in place from the marketing services. You want to ensure the business has a well established brand and is independent of the current owner. There is little point in buying an advertising or marketing business that is branded with the owners name.
Advertising and marketing is essentially the promotion of products and services with the aim of generating more income. There are two different models of advertising businesses, firstly, is a business that provides a service to other businesses to help them promote their products or services. These businesses tend to provide a holistic approach and look at various elements such as branding, product development, package design, communication, paid advertising, seo, digital marketing, print and other media. The second type is a platform that charges a fee for an Ad to appear on it, they are essentially selling advertising space, such as a newspaper or panel on a bus. When you are looking to buy an advertising or marketing business you will need to investigate the business to see what services they currently offer and whether they are in a niche market.
Experience in advertising and marketing will help you to understand the business, how it operates, its client base and where there is room for potential growth. Marketing is a constantly evolving and a changing environment so it's important to stay current and be willing to evolve with changes especially in the digital space.
The biggest advantage is creative control. If you are currently working as an advertising and marketing professional, owning your own business will allow you to make decisions and drive the business forward. There is alot flexibility with marketing and how you operate your business. With the development of new software and programs, advertisers are able to better predict outcomes of marketing budgets.
Advertising and marketing businesses are usually appraised based on a multiple of the net profit to the owner with some market predictions. The setup of the marketing agency or business may also affect the appraisal of the business, for example if the business is branded with an individual's name, it makes it harder to sell the business. It's important to seek professional advice when buying a business so you can conduct proper due diligence. It’s important to note that an appraisal is an estimation of what the business could sell for in the current market, whilst a valuation is conducted by a licensed business valuer.
Depending on the model of the advertising business, it may make money by selling services or selling ad space, or both. In terms of services this could be things like creating a marketing plan, running paid advertising, developing a brand, creating package designs, market research, seo or digital marketing. Usually this type of service is a contract between the business and their client to perform the work over a certain period of time, such as 12 months. The second model that is based on ad space, usually generates income by selling that advertising space for a set period of time such as 4 weeks. It may be based on a click through rate, impressions, or be a flat fee.
The best way to keep track of new business opportunities is to save your search result. You will be notified as soon as a new advertising and marketing business is listed for sale.
Selling an advertising and marketing business requires preparation. Having a solid exit strategy will mean your business is ready for sale and has a greater chance of achieving an optimum price. It’s important to be prepared for the sales journey as it usually takes around 6-9 months to sell a business in Australia. Check out Bsales 6 steps to prepare a business for sale which will provide you a checklist and a general step by step guide. Business brokers are licensed professionals who can assist with the sale of your business and market it on websites such as Bsale. Check out the Find a Business Broker section to locate a suitable broker for your business. Bsale also offers advertising direct to business owners.
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