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MCH Enterprises,
Inc., has developed a "primer" on station valuations.
Many people in the industry know that reasonable multiples paid
during station transactions are generally 2.5 times revenues or
8 - 10 times cashflow. But they do not know why that
yardstick exists. Our primer explains that and also
describes the multi-faceted approach we employ when conducting
valuations.
It is important
for all potential sellers of media properties to remember these
important points:
- Negative
cashflow is not an asset;
- Buyers
always determine what is paid for a media property;
- There are
three numbers associated with the sale of a media property:
What the seller wanted, what the buyer wanted to pay, and
the final figure that gets published in the trade press
after the transaction has closed.
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For a printable
version of our Primer on Radio Station Valuations, click here: 
Requires Adobe Acrobat Reader.
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