Mergers & Acquisitions

Peter Schaefer, a Partner at New Direction Partners, reveals that private equity buyers have started to show a (re)interest in the printing industry.

Peter Schaefer, a Partner at New Direction Partners, talks about what printing and packaging industry segments are deriving premium multiples in mergers and acquisitions.

RR Donnelley and Quad/Graphics apparently have their sights set on gobbling up more competitors—but not each other.

In some ways, owning a printing company you intend to sell is like investing in the stock market. Because the value of what you own can fluctuate unpredictably, waiting for a market "peak" before you act can be a needlessly risky thing to do. It’s better to begin working with your M&A advisor so that when the right offer comes along at the right time, you will be ready.

Learn the five critical steps necessary to ensure that transaction goes through from industry M&A pros.

Paper and packaging industry giant MeadWestvaco appears to be at the end of its life as an independent entity. The company agreed to a merger with RockTenn to form a yet-to-be-named successor company. RockTenn’s expertise in kraft paper, corrugated cartons and retail displays will combine with MeadWestvaco’s strengths in paperboard and folding cartons. The result will be a powerful player in the increasingly global packaging industry, with over $15 billion in annual revenues.

In apparent preparation for the deal with RockTenn, earlier in the month MeadWestvaco announced the spinoff of its chemical business into a separate public company.

Knowing from the get-go exactly what you want to accomplish by purchasing another firm puts you in a winning frame of mind and increases the acquisition's likelihood of success. At New Direction Partners, we know that when a prospective buyer comes to us with a clear picture of the kind of company he or she wants to buy, we can zero in that much more quickly on candidates that will be complementary or accretive to the buyer's present business.

As 2014 winds down, it's satisfying to report that the year has been a mostly good one for mergers and acquisitions in the printing and packaging industry. Looking back, we can see that a normal level of M&A activity has returned to the industry and that—assuming we get no more shocks from the general economy—opportunities for dealmaking will carry over into the year ahead.

More borrowing options exist now than was the case a few years ago. The best way to connect with them is to get expert advice from a source that knows the printing industry and its financing requirements. A qualified advisor can vet private equity lenders, streamline dealings with banks and generally make capital for equipment purchase or business acquisition more accessible. That way, you'll leave no money on tables you may not even have known were there.

When a buyer and a seller reach the letter of intent (LOI) stage, they'll have agreed that the potential fit looks good and that due diligence—the research phase that structures and certifies the transaction—can begin. In this post, we'll review the steps the seller should take once both parties have signed the LOI.