M&A Activity -- Expect a Surge in Mergers
For most, selling their company is a once-in-a-lifetime event. You only get one chance to successfully complete a very complex task. The how-to portion of this article, at best, is an outline and in no way is intended to communicate every twist, turn or outcome in an M&A transaction.
About the Author
Harris DeWese is the author of Now Get Out There and Sell Something available through NAPL or PIA. He is chairman and CEO at Compass Capital Partners and is an author of the annual "Compass Report," the definitive source of information regarding printing industry M&A activity. DeWese has completed more than 100 printing company transactions and is viewed as the preeminent deal maker in the printing industry specializing in investment banking, mergers and acquisitions, sales, marketing, planning and management services to printing companies. He can be reached via e-mail at DeWeseH@ComCapLtd.com.
Printing Industry Mergers and Acquisitions
Smart buyers want smart sellers. Rate your company on this scorecard.
Value Building Desirables, or
High end of the Value Range, or
What's Hot
Non-union work force
Up-to-date technology
3-5 years of revenue growth
3-5 years of sustained EBITDA of 10%+
Audited financial statements
25-35% excess equipment capacity
35-50% additional plant facility capacity
Plant is not landlocked
Early stages of market-based, long-term lease
Good, youthful management willing to stay
No account concentration beyond 20%
Well-documented environmental compliance
No significant pending litigation
Well-engineered throughput
Clean, well-maintained facilities
No major facility maintenance problems
Revenues in excess of $10 million
Number one or two position in market
Identifiable, defensible specialty(ies)
60%+ value-added
No salesperson concentration above 20%
Strong ethics. No payoffs to print buyers
Strong supplier relations
All taxes are paid
Evidence of a tenured, happy work force
Value Beating Undesirables, or
You'll be lucky to even get an offer, or
What's Not
