DeWese--Something to Say About M&A
So my advice is to work harder at growing your sales and especially hard at improving the profit margins on your work. If you're in a city where most of the companies have been acquired, like Baltimore, there just may not be an independent Generosity Litho where you can move your work.
Next question. "Do the big consolidators put in a lot of red tape sales rules that make it harder to sell?"
The answer is, "Rarely to never." The big companies depend on local management to keep running the company as before.
But then you say, "Well, I've heard that they raise prices, and our prices were already too high."
You've heard wrong. In fact, most of the consolidator companies have national buying contracts and programs for buying paper, ink, plates, film, equipment and employee benefits. These cost savings are very significant, and it enables the acquired company to be even more competitive and certainly more profitable.
Now you snicker and say, "Oh, I get it. They cut our benefits, right?" Wrong again, you knucklehead. Most of the consolidators have benefits programs that are equal to or superior to what you already have in place.
So you ask, "What is causing this? It must be bad. A lot of plants are being closed and lot of folks must be losing their jobs."
Hiring, Not Firing
No! No! No! You've done gone to whinin' on me. I only know of a one plant being closed from among the 130 deals so far this year. For the most part, the buyer companies intend to expand the plants and hire more people as the companies grow.
The consolidator companies are generally publicly traded and have very deep pockets for new equipment, people and overall expansion. One of them, Consolidated Graphics, even has 95 young people in a management training program.