Being Informed is the Best Way to Ensure a Good Match

Many business owners I advise about selling their companies come from printing backgrounds. That doesn’t mean they still think of themselves as “printers.” Not at all. Today, they may describe their companies as a “marketing services provider,” or “visual communications company.”

Still, most companies I advise use different combinations of digital, analog, and hybrid printing and converting processes to custom manufacture items such as labels, boxes, pouches, signs, direct mail pieces, apparel, books, manuals, photo products, wallpaper, or decor fabrics.

In a nutshell, print businesses convert digital design files and customer data into tangible, personalized products.

For a long time, printing companies catered primarily to other established businesses, such as publishers, brand marketers, ad agencies, government agencies, or organizations. Now, printing companies such as VistaPrint or Shutterfly sell personalized products directly to consumers or individual gig workers. Other printing companies print and ship products for creative entrepreneurs who sell custom products through online storefronts managed by Etsy or Shopify.

Today, no two “printing companies” are alike. Here are a few questions to ask to help you find a printing business that will meet your acquisition goals.

1. What type of products and services do they currently offer?

To avoid commodity price competition, many printing businesses have grown by offering a robust combination of value-added services to specific vertical markets.

Value-added services might include:

  • design of graphics, exhibits, signs, billboards, packaging, or printed circuits
  • CAD-driven engineering and fabrication of store fixtures or custom displays
  • coordination and tracking of online and direct-mail marketing
  • kitting and delivery of point-of-purchase materials to multiple retail sites
  • installation of printed graphics on vehicles, trucks, windows, walls and floors
  • large-format 3D printing of props and sign elements
  • fast turnaround times
  • support for building and preserving brand identity and graphic assets

For example, over the past 30 years The Vomela Companies have grown through strategic acquisitions. Today, Vomela is a “specialty graphics provider” that serves clients in retailing, arts & entertainment, healthcare, education, banking, and transportation.

Because they can send jobs to multiple types and sizes of digital and analog print systems, Vomela can offer whatever mix of products a company might need to build their brands. This includes sell sheets and direct-mail postcards, point-of-purchase signs and displays, packaging, labels, store decor, event banners, online messaging, and transportation graphics.

If a printing company might be a good acquisition target for your overall business strategy, the print-industry experts at the LaManna Consulting Group can help you find the perfect match.

Here are four more questions to ask so we can help find the best potential acquisition targets for you.

2. What types of markets does the company serve?

Having the right mix of customers has enabled some printing companies to survive the economic turmoil of 2020 better than others.

Until March of 2020, companies that specialized in event graphics for trade shows, theaters, concerts, and experiential marketing were expecting this to be a banner year. Unfortunately, the COVID-19 shutdowns shattered these expectations. They may need to adjust their business models.

Companies that produce labels, packaging, and branded interiors were slightly better positioned for COVID-19. Label companies saw a sharp jump in orders from essential businesses, including alcohol distributors, hand-sanitizer makers, and cannabis companies. Printing companies that make environmental graphics such as wall murals and lobby decor stayed busy because property owners regarded the shutdown as a perfect time to refurbish office buildings and hotels that were suddenly vacant.

Today, many printing companies are pondering what’s next.

3. What printing processes does the company use?

Do you want companies with expertise in analog processes such as offset, screen, or flexographic printing? Some printing companies have kept their analog printing equipment, because these processes can still be the most cost-competitive method of producing higher volume jobs. But finding experienced press operators is a real challenge.

Or do you want tech-savvy companies that use a mix of digital printing and finishing equipment. Some companies are all digital and use online storefronts, MIS/ERP systems, and automated workflows to reduce errors and the need for human intervention.

Artificial intelligence built into the print-production software can perform a variety of functions. Automated systems can:

  • Determine what printing device can produce a job at the lowest cost
  • Vary the design or text on each printed piece so no prints are alike
  • Manage brand colors so they look the same on different types and sizes of prints
  • Schedule and set up jobs to minimize ink usage, labor costs, materials waste, and shipping costs

Many companies use a mix of analog and digital systems.

Some printing companies have hired IT specialists to help develop apps and project management systems that will keep their best customers coming back for more.

4. What is your timeline for completing a deal?

Are you looking to make an acquisition soon? If so, do you have the capital and execution teams ready to execute the transaction?

Or are strategic acquisitions part of a 3 to 5-year growth strategy? This information will help us recommend a company that is either on the market now or in the early stages of revamping their business for a sale in the near future.

5. What is your business strategy with regards to real estate ownership?

Are you looking for manufacturing, warehousing, and shipping facilities in specific regions of the US? A large percentage of a printing company’s assets are tied up in real estate.

I Can Help Smooth Your Acquisition Path

Finding the right print-centric business to acquire can be a challenge because the printing industry is undergoing a massive transformation from analog to digital processes. Some companies are further along in the process than others. Some ready-to-retire owners feel overwhelmed by the magnitude of the investments to be made.

Call me today and tell me more about the type of company you would like to acquire, and I can recommend one or more potential matches. My ultimate goal is to make synergistic matches that will keep everyone happy long after the deal is closed.