CONCRETE ENTERTAINMENT / CONSULT MUSIC CATALOG EVALUATION AND BROKERING SERVICES
ARE YOU LOOKING TO PURCHASE MUSIC CATALOG?
DO YOU HAVE A MUSIC CATALOG THAT YOU ARE LOOKING TO SELL?
(We currently have catalogs for sale! )
(We talk with over 100 potential buyers! )
The start of our process is to gather up financial statements on the catalog for the past 3 years. We can do this by being sent statements in PDF and more importantly, Excel format as well. The easiest and quickest way for us to get statements which is preferred by us and more often preferred by our clients, is to get the login info for all the catalog’s accounts which would include:
- ASCAP, BMI and/or SESAC statements for both Publisher and Writer accounts.
- Current, and any other prior publisher and/or publishing administrator.
- Current publishing administrator.
- Neighboring Rights collection company.
- SoundExchange.
- Royalty accounts with all labels that pay royalties to seller
- Producer royalty accounts with all applicable labels.
By sharing login info, we can go in and pull the exact reports we would need. We can’t change any info in the portals, so no fear of us messing anything up for the seller.
It usually takes 2-3 working days to extract, sort, reformat, and calculate the 3-year average on a catalog. Income from syncs must be treated in a specific manner, as buyers will do the same. They are looking for the steady, dependable income a catalog is generating on a regular basis.
Once we have that number, we estimate what buyers will pay for the catalog. We work with over 90 buyers internationally, and each has their own preferences to the type of assets they like to purchase. There are broad markets for publishing and masters, of course, but also for more passive income streams such as producer royalties and SoundExchange.
Multiples on offers will vary on several factors, like the type of assets for sale and the size of the catalog. The big companies that often make the trade papers are usually looking for catalogs that earn at least $350k-$500k/year, but we also have relationships with buyers that will buy catalogs earning as low as $25k/year. We recently sold a catalog earning $80k/year for a price that was a hair shy of $1,000,000. This was a great deal for the seller. Some of the deals that we have recently brokered include Tesla, BB King, Dirty Heads, Lovelytheband, Saving Abel, Jay Baumgardner and a comedy catalog including Margaret Cho, Brian Regan, and others, along with such veteran comedians as Jonathan Winters, George Carlin, Gallagher. Our biggest sale to date was for a catalog earning $950k per year which we secured $15mm for the seller.
With our estimated valuation of the catalog calculated, we report our findings to the sellers. If the seller feels the price, we can fetch is not enough to warrant them selling, the process stops at no cost to them. If they like the numbers and feel like they would like to proceed with selling, we then send our 2 page “exclusive broker” agreement for signature. The agreement gives us a few months to sell the catalog on an exclusive basis and a 5% commission if we do. Once the agreement is signed, we create an attractive and informative sales deck and begin pitching to appropriate potential buyers.