Friday, June 21, 2013

Another FAQ: How do I get my station(s) ready for a sale?

Q:  "How do I get my station(s) ready for a sale?"

A:  It pays to get your house in order.  All buyers will need to review certain key documents at some point in the sale process. They tend to fall in these general categories:

• Contracts and leases
• Financial
• Real Estate
• Employees

Compile a list of all station contracts and leases (including tower leases, programming and talent agreements, maintenance, ratings, software, etc.).  Include start and end dates, monthly costs, and cancelation terms

Financial statements play a key role in the sale process; they are the foundation supporting the value of the business. They must be accurate and comprehensive.  Prepare a three year history of Income Statements. If non-operating expenses are contained in the expense line items, they should be identified for each year.

Summarize your real estate holdings in a spreadsheet (use, acreage, location, and property tax). Locate your most recent property tax bill and surveys.

Prepare an update employee list, including job title and compensation.

Review your Public File to ensure full FCC compliance.

Media Services Group