Local journalism outlet sells for 6 figures 🗞

July 8, 2022
​Read on web​

After nearly three decades of publishing local news, The Coast, a Nova Scotia-based local journalism outlet, was hit hard by the pandemic.

Co-founder and publisher Christine Oreskovich described COVID-19 as a "tidal wave" to The Coast's operations.
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The media company, founded in 1993, struggled to transition to a digital-first operation. So Oreskovich sought out a partner that not only believed in preserving The Coast’s quality local journalism and events, but also one that could help through a digital transformation.
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Oreskovich found that partner in Overstory Media Group, which purchased the community news outlet in 2022.

All the details 👇

🗞 Local news outlet The Coast, in business since 1993, finds buyer to support their print-to-digital transition​

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The alphabet soup you should know...

In business, acronyms are plentiful and sometimes a pain.

But one that's important to understand as a founder angling to sell a business is EBITDA.

EBITDA stands for “earnings before interest, taxes, depreciation and amortization." It's a formula often used to determine a company’s value when the focus is earning potential rather than current profit.
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Want to understand this formula better? We explain:

🤔 What’s EBITDA? What it means, how to calculate it and why it matters for selling your business​

The irony of preparing for acquisition

Here's something pretty wonderful about getting your business in shape for an acquisition:

What's good for a sale is also good for your business. And likely good for you, too.

Almost any change you make to your business as preparation for selling it will have a positive effect on your company, whether you sell it or not. Best practices for acquisition preparation align almost perfectly with best practices for growing a profitable, sustainable business.

That's why when some founders go to great lengths to do all the right things ahead of a sale, they realize they want to keep the business. Because they turned it into a revenue-generating machine that could run without them!

It's also why it can't hurt to get your business in shape for an acquisition now, even if you don't plan to sell for years.

Here are a few examples of things you might do now that will set you up for a smooth acquisition later:

• Look for ways to increase revenue. This sounds obvious, but it's amazing the changes founders tend to make when a sale is on the horizon. Do it now instead and reap the rewards.
• Minimize expenses. Likewise, do the trimming now that you'd otherwise do ahead of a sale. As a bonus, it will increase your bottom line.
• Get your financial house in order. Hire a financial professional to clean up your books, and set a good process for tracking your finances going forward. As a bonus, you'll have better visibility into your finances, setting you up to make better decisions about the business.
• Document your systems. Write down or record how you do what you do, and have your team do the same. A buyer will want this guidance for a smooth transition. In the meantime, your team can follow your guides for tasks you've already figured out and save their brain space for new problems. Having SOPs (standard operating procedures) also makes it easier to onboard new hires.
• Get yourself out of the business. You don't have to get entirely out of it if you don't want to, but at least identify which parts of the business rely on you — sales? product? — and delegate as much as possible. If the business can run without you, you'll have more leverage to avoid an earn out when you sell. And until then, you'll open more time on your calendar to improve the business in ways you're uniquely suited for or to do something totally unrelated.

Which of these feels the most daunting? We'd love to hear from you.

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​
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P.S. Did you see our story earlier this week about the SaaS that sold to Gusto?

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Our mission is to redefine startup success by showcasing companies that sell for $100K-$50M. Learn more about us or follow us on Twitter.

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