Present M&A Market Conditions For Commercial Printers
Although there are still some distressed sales in the marketplace, these transactions are becoming fewer and fewer. It appears that the market has bottomed out and we are now seeing a different attitude from prospective acquisition candidates. The majority no longer have a dire need to sell. They are not running scared and can take time to determine if the prospective offer is realistic and meets their needs. They have weathered the storms of the prior years and are survivors.
What I am seeing now is that the owners of commercial printers with sales less than $10mm, which represent a significant number of commercial printers, are trying to decide if they can compete in this marketplace. There has been a fair amount of consolidation and a decline in market size from $101 billion in 2000 to approximately $80 billion in 2013. It has become increasingly difficult for companies to grow. A few growth strategies are acquisitions, investments in new technology, and/or investments in improving efficiencies. All of this takes capital. Owners are asking themselves, do I want to take the risk?
Companies that survived the past years are now making money, but a far cry from days before the downturn in the economy and a shrinking market due to technology. This gives owners time to consider prospective offerings.
With that in mind, offers have improved, and represent a more realistic approach for both the seller and the buyer. The offers are more win/win and not one sided.
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