2020 reminded everyone that business-altering disruptions can occur without warning
The most important lesson print business owners learned in 2020 is that inertia in 2021 is not an option. When orders, revenues, and profits are all rising, it’s natural to want to keep things exactly as they are. But 2020 reminded everyone that business-altering disruptions can occur without warning.
While the demand for some types of prints (e.g. event graphics) plunged more than orders for other types of prints (e.g. labels and packaging), every printing business must incorporate changes in the workplace, supply chains, budgets, and sales strategies in their 2021 plans.
Some print businesses are improving e-commerce capabilities. Others are further automating production workflows or diversifying into growing markets. Not surprisingly, some business owners are thinking of selling their print businesses.
Continuity Plans and Exit Strategies
During the biggest disruption in their markets since 2008-2009, many print businesses recognized the value of having both a business continuity plan and an exit strategy.
Business owners without continuity plans already in place scrambled to adapt. Many pivoted quickly to producing PPE gear, safety signage, and social distancing graphics and barriers.
Others wished they had sold their businesses in 2019 when times were good. Some clients asked me what would happen if they tried to sell a business during the downturn. Could buyers be found? Would they get a decent price?
The fact is that successful strategic deals are made when the seller is not financially distressed.
Business owners that plan their exit strategies years in advance are more mentally and emotionally ready to sell their businesses, and their companies are well prepared for the next wave of growth.
Planning for What’s Next
At the LaManna Consulting Group, we encourage business owners to create a guiding vision for how they will both grow and transition out of the business. We teach them the value of taking steps now to make their businesses more attractive to buyers when they are ready to sell.
In Q4, we have been helping print business owners better understand what COVID-related changes in markets and consumer behavior will be temporary and which changes might be permanent. We’ve pointed out changes that print businesses can make to help their companies be more resistant to future disruptions in their markets.
We encourage our clients to think like investors, reminding them that business buyers like companies that have strong management groups and awareness of future growth opportunities.
The LaManna Consulting Group includes industry experts in both the printing industry and mergers and acquisitions. Having bought, grown, and sold successful businesses myself, I remind clients how important it is to get fresh, objective perspectives from professionals outside of your existing network of family, colleagues, and friends.
If your investment group is seeking opportunities to improve your deal flow, give me a call. I can introduce you to owners of print-related businesses that may be ready to make a deal.