Consolidation--Moguls of M&A
Regarding specialization, the core business will be sheetfed and web printing. However, we believe the market values a graphic arts provider that can supply a broad range of services, including some of the new Internet products and services. As a result, we will also purchase companies that complement our core printing business, with the aim of providing more expansive customer solutions.
PI: What payment options do you use?
Jensen: We use a wide variety of payment options necessary to satisfy the sellers' objectives. We do, however, emphasize a cash payout.
PI: What formula do you use to place a value on a company?
Jensen: The formula depends upon the conditions surrounding each individual situation. Of course, we offer competitive market valuation.
PI: How much cost savings does your company bring to an acquisition after buying it, and in what areas (paper, consumables and equipment)?
Jensen: By power-buying materials and equipment, we can bring savings to all of these categories.
PI: What percentage of company presidents have stayed on after the acquisition?
Jensen: Since we are a new printer, we have not had anyone leave. However, all three of our company presidents are excited about Kelmscott's strategy of operating excellence and plan to remain with the company for quite some time.
PI: What is the ultimate objective; where are you taking these companies, direction-wise?
Jensen: Our objective is to build an outstanding operating company. If you aggregate known synergies, marketing opportunities with national purchasing organizations and operating excellence, improved enterprise profitability will be the result.