Attendees at the recent NAPL-NAQP Owners Conference exchanged ideas/perspectives on industry trends and issues including strategies for transitioning from ownership.
Here are 3 key learning points that received attention among participants:
1. The M&A marketplace for quick and small commercial printing companies is robust, perhaps more so than other segments of the overall graphics communications industry. This is primarily due to buyers sourced by national franchise systems such as Allegra and Alphagraphics, both of whom have clearly demonstrated prowess in finding M&A opportunities for their franchisees.
2. Transitioning from ownership where the business is sold "in pieces" rather than as a "going concern" has become more accepted among quick and small commercial printers. "There is no shame in going this route," said one attendee who owns a successful shop in Maryland. General commercial printers are no longer alone in accepting this approach to business succession.
3. It seems that very few businesses are transitioned by "gift" within families. For some owners thinking of a transition, family members are potential buyers who tend to overpay, in stark contrast to the notion that family businesses are "handed down" to the next generation without ample consideration.
For a PDF of my presentation on Transition from Ownership that was presented at this conference, please contact me with your request.