What’s Fueling M&A Fever?
Getting Optimum Value
The current M&A market is the best it has been for the last 10 years. Majors, strategics and private equity players are vigorously pursuing new opportunities, and are paying top dollar. If you are seeking an exit, planning a succession, or even looking for a new growth channel, now is the time to get in.
There are several steps to ensure your maximum draw—today and for the future. Our experience in M&A has shown that companies that secure the best value have:
• A unique niche, vertical market, product, or service.
• An intelligent product/service mix that capitalizes on market dynamics.
• A proven management team with a clear vision and the ability to execute.
• A strong, strategic business plan with compelling competitive advantages.
• Non-concentrated account base (no greater than 20 percent sales with any single customer) and established contracts.
• No immediate need for large capital outlay (offers will be reduced to accommodate).
• Non-union employees (union presence, contract length may impact final price).
• Sales channels (direct sales force is more valuable than trade).
Like every industry, print is cyclical, and there is no guarantee that investment interest will continue. The industry’s ability to succeed is the leading indicator for continued favorable transactions. The second consideration is the cost of capital. If interest rates stay attractive, print deals will continue—from every buyer pool.
In the end, nobody understands your business, goals, people and opportunities as well as you do. The direction you choose depends on what you envision for the future. You’ve worked hard to build your company and have a lot at stake. Consider your options carefully. Hire a consultant for expert guidance. And take advantage of today’s most lucrative opportunity in print. PI
About the Author
Bob Cronin is managing partner of The Open Approach, a boutique consultancy and M&A specialist dedicated to printing. The firm has spearheaded some of the industry’s most lucrative ventures for companies of every size and marketplace, and has been named PIA/GATF’s exclusive M&A recommended partner. Cronin, former chairman and CEO of Wallace Computer Services, can be reached at (630) 323-9700 or at www.theopenapproach.net.