newsXpress Blog

There’s a buzz in the air in May 2025, with plenty of newsagency businesses changing hands across the country. A newsagency is a good business to buy and a good business to work on, improve and make more valuable.

A question we frequently encounter from prospective buyers is, “What should I ask for when I’m looking to buy a newsagency?”

Our advice is: thoroughly understand the newsagency business as it stands today. The newsagency of the present and future is a far cry from the predominantly agency-focused model of the past, for which the Australian newsagency channel is well known.

To help you get a clear picture, here’s a list of essential data we recommend all prospective newsagency buyers request from the vendor or their representative:

• The accountant’s Profit & Loss (P&L) statements for the last two years. Insist on the actual financial statements, not a specially prepared spreadsheet.
• A detailed list of all add-backs used to arrive at the profit figure upon which the asking price is based.
• Tax returns for the same two-year period. While their relevance can vary depending on business structures, they can serve as a valuable cross-reference against the accountant’s P&L.
• Sales data reports directly from the Point of Sale (POS) software for the last two years. This is critical data for verifying the claimed income.
• Sales data reports from the lottery terminal to corroborate the income figures.
• Business Activity Statements (BAS) to further confirm the data presented in the P&L.
• A comprehensive inventory list detailing every item in the business, including its purchase price and the date it was last sold. Additionally, request copies of invoices for random verification.
• A copy of the current shop lease agreement.
• Copies of any other leases that the vendor expects you to assume as part of the sale.
• A list of all forward orders that have been placed on behalf of the business.
• A complete list of all employees, including their names, hourly rates, employment type (e.g., full-time, part-time, casual), start dates, accrued annual leave, and accrued long service leave.

This information is fundamental for any buyer to properly assess a business opportunity. If a business for sale cannot readily provide this data, it raises serious questions about its preparedness for sale.

Once you have this information in hand, take the time to analyse it yourself. Don’t outsource the critical decision of whether a business is a sound investment.

For newsagents considering selling, and who might feel apprehensive about this list, our advice is to address these points proactively. Focus on running your business effectively now, ensuring that the data outlined above reflects a healthy and well-managed operation. Preparing your newsagency for sale is an ongoing process, something you should be mindful of every day you’re in business.

This is why we here at newsXpress often say that every day in a well-run business is a payday. Operate a smart, lean, and profit-focused newsagency, and you’ll enjoy success today and a significant reward when you decide to sell.

The most attractive businesses for buyers are those that are straightforward to operate and consistently profitable. While a buyer might be willing to turn a business around, they should rightfully reap the rewards for that effort, not the seller.

Ultimately, the selling price of your business will be determined by its current performance. So, get your affairs in order and make your newsagency as appealing as possible to potential buyers. The effort you put in now will undoubtedly be worth it in the long run.

newsXpress helps newsagents run businesses they enjoy and that are profitable. We love helping new newsagents settle in and then to evolve the businesses to be relevant into the future.