Selling Your Catalog: Prepare for the End Game

The outcome value of end-game planning can be summed up by the financial reality of the value of a catalog company. A catalog company with exceptional earnings can bring six to seven times its earnings upon sale. A catalog with $2 million in earnings can bring $12 million to $14 million at the time of harvest. The same catalog with average earnings of, say, $1 million, will likely bring only four to five times its earnings. The sale price might be only $4 million or $5 million. Compare the extremes: $5 million to $14 million.