Long Term Models for Startups or Acquisitions or …

 If you are raising money for a startup, considering an acquisition, you want a long term model for converting free to paid or for any other reason the MPMW stands alone. You can build a full financial model that:

Lets you develop and refine your long term plan.

Makes it easy to look at worst-case scenarios.

Quickly and convincingly answers what-if questions from investors and upper management.

Presents your plan in a readily readable form that gives investors or management confidence that you have ‘done your homework’.

You can use your model to print circulation reports, P&Ls, cash flows and balance sheets, but the most useful report is a print-out of the assumptions you put into the model.

At a glance investors or managers can see your assumptions about:

New business production by source over time, including price and term, credit, cancel and bad debt percentages, and renewal assumptions.

H1

Month

#

Subs/

Cost/

Promo

BRE

%

%

No

%

Sub.

#

%

Renl

H2

Begin

Mo

Month

Month

Cost

Cost

Cr

BD

Is

Canc

Rate

Iss.

Line

H3

000

000

$/Sub

$/Sub

BD

Code

1

1/92

12

5.00

22.0

100.0

40.0

3

20.0

18.95

12

100.0

TV 1 Yr

2

1/93

12

5.50

24.0

100.0

40.0

3

20.0

20.95

12

100.0

TV 1 Yr

3

1/94

12

5.75

28.0

100.0

40.0

3

20.0

20.95

12

100.0

TV 1 Yr

Expected newsstand sales, ad sales and ancillary product sales over time.

Hiring plans, including salaries and planned raises.

H1

Month

#

Start

Mos

%

Month

%

$000

H2

Hired

Sal

Bet

Incr

Incr

Incr

Incr

H3

$000

Inc

1

Production Mgr.

1/91

1

60

12

5

2

Production Asst.

1/91

1

25

12

5

3

Secretaries

Expenses, including production and distribution, editorial, ad sales, fulfillment, G&A and any other expense categories.

H1

Month

Occ

T/E

Tel/

Staty/

Insur

Ac/Lgl

Cons

Furn/

H2

Begin

Costs

Costs

Tel

Sup/Eq

Costs

Fees

Fees

Equip

H3

$000

$000

$000

$000

$000

$000

$000

$000

1

1/91

10.000

0.500

3.000

4.000

2.500

2.000

2

7/91

10.300

0.515

3.090

4.120

2.575

2.060

3

1/92

10.609

0.530

3.183

4.244

2.652

2.122

4

7/92

10.927

0.546

3.278

4.371

2.732

2.186