more than meets the eye ?

[Radio_bored-Op]

yes, it is a transformers reference, but thats not what this is about :::
It appears the websites that are (something close) to sell/and buy(dot)com
always list the same listings..and always have the undesirable stations -

what does this exactly mean as far as "small" stand alone/or regional
clusters for sale - you wont see it listed on these sites, but then
read that mid-west America cluster (_______) was bought by
a 2003 start up company, having two markets in the state -

why sooo hush hush?

PS:
even on the site, it is rare to few they say the city/and frequencey
most ads run:
"a south top35 market, has an AM, asking 1.1 million"
or, "A popular north east University and college town station is for sale"

how come????

 

[Goat Rodeo Cowboy]

First reason: it is not good for business for word to be on the street that your station is for sale. Selling advertising is a tough task. The advertisers know that if they are going to commit to radio advertising, in most cases they need to stick with the schedule for the long haul to get maximum benefit. (That can be said for other forms of advertising also.) If they think the station owner is not oing to commit to the long long haul, they get fearful of trusting the station's advertising.

Owner has personal reason for keeping it quiet. If they have other business interests, the customers and bankers of these businesses worry about what is in their future if you sell.

Owners do not like dealing with what car dealers call "tire kickers". They hate having their evening dinner interrupted by some yay-hoo wanting to know about the station, and then after sharing confidential information you find the caller couldn't buy a used car his financial condition is so bad, and now the caller may gossip all over the country about your station and why HE THINKS you are wanting to sell, etc.

Once you contact the broker, convince the broker you possibly have the financial strength to put a deal together, AND you sign a non-disclosure agreement then they will share information about the station with you.

One thing a station owner does not want is for you to call him up, pump him dry of information about how you do business, only to find out you are the brother-in-law of his competitor and you now tell the competitor all the secrets about the station.

 

[Goat Rodeo Cowboy]

P.S.: I signed such a non-disclosure agreement 9 or 10 years ago. I couldn't put the deal together. The station has since sold.

I have never dug out my copy of the agreement to check the fine print. Maybe there is a time limit, and expiration date, or a release in case the station changes hands. I just know that I honestly gave them my word.... not just signed a paper. To this day I seldom discuss ANY DETAIL about that station with anyone. If I do, it is with someone that I know understands the concept of confidentiality and they don't get any significant amount of information.

If anyone ever went to that broker or to that seller and started telling them that I shared this and that and something else about the station OR THE OWNER'S PERSONAL LIFE that I learned during those negotiations, I would be dead-in-the-water with that broker. And I assume brokers talk to each other. Screw-a-broker-over by sharing confidential information and see how many other brokers refuse to take your phone calls in the future.

 

[bossbill]

I signed a non-compete with a well-known scoundrel a few years ago, because he was trying to put together another of his famous multi-station-multi-frequency move-in/out deals that involved over 20 stations. Since I now assume that he is either in prison or should be, or has been beat to a pulp by an irate son or daughter of some old person he took advantage of, I take pleasure in sharing the details of his complex scheme with my friends...

 

[bossbill]

err... non-disclosure

 

[reelyreal]

You know that's a really interesting point.. I've never read the super fine print of a non-disclosure agreement to see about time limits. I've signed one in the past, didn't purchase, and it has since sold. I generally make it my policy to not discuss any details of the station as well.

yes, it is a transformers reference, but thats not what this is about :::
It appears the websites that are (something close) to sell/and buy(dot)com
always list the same listings..and always have the undesirable stations -

what does this exactly mean as far as "small" stand alone/or regional
clusters for sale - you wont see it listed on these sites, but then
read that mid-west America cluster (_______) was bought by
a 2003 start up company, having two markets in the state -

why sooo hush hush?

PS:
even on the site, it is rare to few they say the city/and frequencey
most ads run:
"a south top35 market, has an AM, asking 1.1 million"
or, "A popular north east University and college town station is for sale"

how come????

You tend to see undesirable stations listed online and not better clusters because those "tough sell" stations need to cast a wider net to find a buyer. Brokers (good ones, at least) have the networks and the connections to find the qualified buyers and investors without publicly listing the station.

 

[Goat Rodeo Cowboy]

You tend to see undesirable stations listed online and not better clusters because those "tough sell" stations need to cast a wider net to find a buyer. Brokers (good ones, at least) have the networks and the connections to find the qualified buyers and investors without publicly listing the station.

Let me say this very carefully.... because in some ways I am talking about myself. ;D

Sometimes the task of selling the "undesireable stations" requires locating and spending time with the "undesireable prospective customer". Those of us willing to consider purchasing a station doing less than $200,000 in sales per year... maybe even less than $100,000... may require more energy from the broker than does the person considering purchasing a station doing $1,000,000 or more per year. We want the broker to answer questions we really ought to be asking an attorney... but we are not ready to start paying the attorney yet. We want the broker to answer questions we really ought to be asking an accountant, but we are not ready to start paying the accountant yet. When the broker starts sharing information with the "undesireable prospective customer" he has no assurance that the potential buyer will be loyal and make the purchase through the broker, or if we will try to end-around and go directly to the station owner before the broker even gets a non-disclosure commitment in hand.

The broker can spend more time earning a small commission selling a station for $85,000 than the time it would take to sell a $750,000 station so the widow with the small town station her husband let run down as his illness progressed can sometimes only get the "undesireable broker" to even take the listing. I have had brokers explain to me that I don't fit their profile and maybe I should find another broker to help me locate a station. TRANSLATION: I don't list stations in that price range.

This post IS NOT a complaint. I have sized up radio stations and I know what I could buy and what I could operate and I don't waste people's time trying to find a miracle that would put me in over my head. I have sized up brokers and I recognize who is capable and willing to work with me, and I try to be efficient with their time. I recognize who the brokers are who do not deal in the low-dollar deal that would fit my needs so I don't try to fool them into spending time with me.

Going back to the Original Post: There are many legitimate reasons for NOT giving all the details of an available station whether the ad is on line or in print. The seller may be contemplating divorce and needs to test the market before "pulling the trigger". There can be a serious illness in the family that they are not ready to explain. You don't want the station staff to know you are considering selling so they all start looking for other jobs in anticipation that the next owner will not be someone they would want to work for. WE could spend the night with a long, long list why "stations for sale" is such a hush-hush operation.