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Sales of outdoor advertising companies are generally sales
of the assets of the business rather than sales of the stock.
Persons in the industry believe that the small number of stock
sales of outdoor advertising companies is due to the reluctance
of buyers to take the risk of unknown liabilities from past
operations of a corporation, and to deal with the tax issues
raised by buying the stock of a corporation and liquidating the
corporation. Existing outdoor advertising plants are attractive
acquisition candidates because of the small number of locations
available for new construction. Not all buyers of outdoor
advertising companies in the last 10 years, however, have
previously been in the outdoor advertising industry.
Approximately 62 percent of SOAI's paints in 1981 were
illuminated, utilizing older gooseneck-style lighting. SOAI's
nonstandard inventory consisted predominantly of multipost
structures made from creosote wood poles, which were less
desirable to national advertising than the more modern
standardized uni-pole paint. SOAI's paints were generally
smaller in size than standard paints and offered an economical
alternative to local advertisers. SOAI's inventory of sign faces
as of December 31, 1981, was as follows:
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