Selling a media company is an exciting milestone—but it’s also a complex transaction that can go sideways fast without the right preparation. If you’re wondering how to avoid the most common mistakes when selling a media company, this guide will walk you through exactly what to watch out for. Whether you run a digital publishing brand, video production agency, or content studio, the media landscape is unique, and so are the pitfalls that come with selling.
At Merge, we’ve seen it all. And we’re here to make sure you don’t fall into the traps that cost founders time, money, or peace of mind. Here are the top mistakes when selling a media company—and how to avoid them.
1. Waiting Too Long to Start the Process
The mistake: Founders wait until they’re burned out or in decline to start exploring a sale.
Why it matters: The best time to sell is when your business is performing well and trending upward. Buyers pay for momentum. Waiting too long can mean lower valuation, fewer buyers, and a longer time on market.
How to fix it: Start planning your exit 6-24 months in advance. At Merge, we offer complimentary valuation snapshots to help you understand your current position and what levers you can pull to grow value before you sell.
2. Messy Financials or Missing Add-Backs
The mistake: Your books are disorganized or your EBITDA doesn’t reflect the true profitability of the business.
Why it matters: Media businesses often have fluctuating income, contractor-heavy teams, and non-standard revenue models. If you don’t clean up your financials, buyers will discount heavily—or walk away. Messy financials erode trust, which turns into one of the biggest mistakes when selling a media company.
How to fix it:
- Move to accrual accounting
- Document all add-backs (e.g. owner salary, one-time production costs)
- Provide clean P&Ls and a normalized EBITDA view
- Consider a light Quality of Earnings review if over $1M EBITDA
3. Underestimating the Power of Narrative
The mistake: Presenting your business as a spreadsheet, not a story.
Why it matters: Buyers invest in a growth narrative. They want to understand what makes your brand special, who your audience is, and why your model will scale under new ownership. Not getting this right can turn into one of the biggest mistakes when selling a media company.
How to fix it: Craft a compelling CIM (Confidential Information Memo) that includes:
- Your origin story
- Service or content mix breakdown
- Growth drivers and untapped potential
- Why clients or audiences are loyal
At Merge, our team handles this storytelling process to position your business for premium offers.
4. Relying Too Heavily on One Client, Platform, or Revenue Stream
The mistake: Having more than 30% of your revenue tied to one source.
Why it matters: Buyers fear concentration risk and this turns into one of the biggest mistakes when selling a media company. If your business depends on a single advertiser, distribution platform (like YouTube or Facebook), or large client retainer, it’s a red flag.
How to fix it:
- Diversify revenue across multiple clients or content streams
- Document past renewal rates or stickiness if concentration is unavoidable
- Show what you’ve done to reduce dependency over time
5. Not Protecting Your IP and Contracts
The mistake: Loose ownership of assets, unclear contracts, or missing rights.
Why it matters: Buyers want clean transferability. If your brand name isn’t trademarked, or if client contracts don’t allow for assignment, your deal could hit a wall in diligence.
How to fix it:
- Confirm domain, trademark, and copyright ownership
- Review all contracts for assignability
- Get written confirmation for freelance IP ownership if not already covered
6. Choosing the Wrong Buyer
The mistake: Taking the highest offer without considering fit.
Why it matters: If the buyer doesn’t align with your culture or vision, you risk post-close regret. Team retention, brand continuity, and customer experience can all suffer.
How to fix it:
- Vet buyers for strategic alignment and experience in your space
- Ask about post-acquisition plans
- At Merge, we facilitate conversations that go beyond the LOI—to make sure it’s the right deal, not just the best offer
7. DIY Deal Process
The mistake: Trying to run the sale process on your own while running the business.
Why it matters: Selling a business is a full-time job. Without expert guidance, you risk underpricing, missed buyers, or getting buried in diligence.
How to fix it: Work with a specialist. Merge provides white-glove, founder-first M&A support tailored to media businesses. We know what buyers want, how to position your business, and how to keep deals moving.
Final Thoughts
Selling a media company is high-stakes. Avoiding these common mistakes when selling a media company is the difference between a smooth, profitable exit and a stressful, value-destroying process.
At Merge, we help founders navigate the sale process with confidence and clarity. If you’re thinking about an exit, let’s chat. A quick valuation snapshot is the best first step—and it costs you nothing.
