Pulpmx empire

jchek779
Posts
480
Joined
3/19/2009
Location
San Juan Capistrano, CA US
1/21/2020 4:23pm
jchek779 wrote:
I recognize that logic, reason, and data are hated and disregarded around this place, but I’ll take an opportunity to throw some salt on with the...
I recognize that logic, reason, and data are hated and disregarded around this place, but I’ll take an opportunity to throw some salt on with the pepa’

Steve had done a great job growing a hobby, interest, passion into a tremendous operation and opportunity for his friends to earn an income. He produced free (mostly) content and a large part of why we all tune in each week is his personality, his schtick, and the inside jokes that we are all part of.

Therein lies the problem. The value of Pulp is centered around Steve, much like many self-employed and few man operations in this country. He is essentially a general contractor – with his name and reputation and listener base comes the value to his sponsors. With that information, the only value in the business is physical assets, some goodwill, and a multiple of Steve’s take.

So if we break it down a little more and value the business in terms of multiples, here’s my take on how/what I’d pay for it.

Assets – Fair Market Value, which would probably be $0.50 on the $1.00 he paid for things
Goodwill – probably not much considering that when Steve goes…it goes

Steve’s Salary + Recast of Financials, Depreciation, Owner Expenses, Etc – 1x because this is mainly a self-employed gig.

Sidebar: If Steve was able to manage (which he does to an extent) and train/replace himself, I’d add a 2x – 3x multiple. If PulpMX ran completely without Steve but he was still the owner, I’d value at a 4x – 5x of his take.

PulpFantasy – This system can run without Steve – I’d give it a 4x multiple of net proceeds with a requirement that Marx stays on for the next 3 years and they both sign a non-compete

So, long story short, the only person that could buy Pulp Nation and keep it alive is Jason Weigant. He’s too cheap, so Pulp dies when Steve quits.
Nice analysis, how do you know so much about valuing a small business?
Thank you,

For a period of time, I was looking to buy one.
Then I started one and sold it.
Then I started another.
One of these times, I'm going to figure it out and get it right.
jchek779
Posts
480
Joined
3/19/2009
Location
San Juan Capistrano, CA US
1/21/2020 4:26pm
jchek779 wrote:
I recognize that logic, reason, and data are hated and disregarded around this place, but I’ll take an opportunity to throw some salt on with the...
I recognize that logic, reason, and data are hated and disregarded around this place, but I’ll take an opportunity to throw some salt on with the pepa’

Steve had done a great job growing a hobby, interest, passion into a tremendous operation and opportunity for his friends to earn an income. He produced free (mostly) content and a large part of why we all tune in each week is his personality, his schtick, and the inside jokes that we are all part of.

Therein lies the problem. The value of Pulp is centered around Steve, much like many self-employed and few man operations in this country. He is essentially a general contractor – with his name and reputation and listener base comes the value to his sponsors. With that information, the only value in the business is physical assets, some goodwill, and a multiple of Steve’s take.

So if we break it down a little more and value the business in terms of multiples, here’s my take on how/what I’d pay for it.

Assets – Fair Market Value, which would probably be $0.50 on the $1.00 he paid for things
Goodwill – probably not much considering that when Steve goes…it goes

Steve’s Salary + Recast of Financials, Depreciation, Owner Expenses, Etc – 1x because this is mainly a self-employed gig.

Sidebar: If Steve was able to manage (which he does to an extent) and train/replace himself, I’d add a 2x – 3x multiple. If PulpMX ran completely without Steve but he was still the owner, I’d value at a 4x – 5x of his take.

PulpFantasy – This system can run without Steve – I’d give it a 4x multiple of net proceeds with a requirement that Marx stays on for the next 3 years and they both sign a non-compete

So, long story short, the only person that could buy Pulp Nation and keep it alive is Jason Weigant. He’s too cheap, so Pulp dies when Steve quits.
motoxxx599 wrote:
I positioning my company to be sold right now and no agent, lawyer, consultant, or accountant has put it as simple as you just put it.
Thanks - glad I could help.

Offer seller financing on a 3 to 5 year term. Sell it to an employee or group of employees with 10% down.

Worst case, you get paid off on time. Best case, you get the business back. You already know how to build it, so you can fix it and sell it again.
1
jchek779
Posts
480
Joined
3/19/2009
Location
San Juan Capistrano, CA US
1/21/2020 4:50pm
Tarz483 wrote:
For arguments sake I think he could hire someone to take his place and as long as the the others were down to stay on it...
For arguments sake I think he could hire someone to take his place and as long as the the others were down to stay on it would all keep rolling.
But the person would have to know the sport well etc.
If it were Mathes, JT, or Keefer it would be full steam ahead.
And even others would be possible depending on their knowledge and personality.
If I was Steve's agent and looking to maximize what he has, while transitioning Steve out in the next few years - I'd be positioning the Pulp Empire to be bought and absorbed by an entity like RacerX. The combination of both listener bases would be great, but I'm selfishly worried that Racer X might try to sanitize the show.

Keep Pulp Fantasy behind and owned by Steve and Co. (cash cow)

Slide Weege into the Host seat with Matthes in the revolving co-host rotation. Weege has the history and some schtick with the riders and industry. Show 401 (or whatever it was) was awesome.
2
indymxr
Posts
94
Joined
9/15/2008
Location
Anderson, IN US
1/22/2020 9:53am
Weege is awesome but I don't think he has the personality to carry it on his own. He is too positive. Steve keeps an edge too him that keeps the listeners engaged. I'm sure there is someone out there in the pits that could be groomed to slide in but it takes someone with a combination of love for the sport and FU all at the same time..

The Shop

Hudd_421
Posts
645
Joined
2/17/2015
Location
TX US
1/22/2020 10:12am
You guys, this is Steve's last year before retirement. Just enjoy it before he spends the rest of his days chasing the sun.
1
2
ACBraap
Posts
988
Joined
2/10/2012
Location
Seattlish, WA US
Fantasy
450th
1/22/2020 1:06pm
jchek779 wrote:
I recognize that logic, reason, and data are hated and disregarded around this place, but I’ll take an opportunity to throw some salt on with the...
I recognize that logic, reason, and data are hated and disregarded around this place, but I’ll take an opportunity to throw some salt on with the pepa’

Steve had done a great job growing a hobby, interest, passion into a tremendous operation and opportunity for his friends to earn an income. He produced free (mostly) content and a large part of why we all tune in each week is his personality, his schtick, and the inside jokes that we are all part of.

Therein lies the problem. The value of Pulp is centered around Steve, much like many self-employed and few man operations in this country. He is essentially a general contractor – with his name and reputation and listener base comes the value to his sponsors. With that information, the only value in the business is physical assets, some goodwill, and a multiple of Steve’s take.

So if we break it down a little more and value the business in terms of multiples, here’s my take on how/what I’d pay for it.

Assets – Fair Market Value, which would probably be $0.50 on the $1.00 he paid for things
Goodwill – probably not much considering that when Steve goes…it goes

Steve’s Salary + Recast of Financials, Depreciation, Owner Expenses, Etc – 1x because this is mainly a self-employed gig.

Sidebar: If Steve was able to manage (which he does to an extent) and train/replace himself, I’d add a 2x – 3x multiple. If PulpMX ran completely without Steve but he was still the owner, I’d value at a 4x – 5x of his take.

PulpFantasy – This system can run without Steve – I’d give it a 4x multiple of net proceeds with a requirement that Marx stays on for the next 3 years and they both sign a non-compete

So, long story short, the only person that could buy Pulp Nation and keep it alive is Jason Weigant. He’s too cheap, so Pulp dies when Steve quits.
Ah, but Jason being cheap, would buy it with seller financing,and payments contingent on recurring revenues, putting most of the risk on the seller, and making the business effectively finance itself.

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