The recent NAPL News Talk Live program on Exit Strategy had an M&A-orientation because “sale of business” has overtaken “gifting to children” as the roadmap of choice in the print, mail and graphics communications industry.
Given the substantial M&A activity that defines the landscape of the print and graphics communications industry, it's interesting to note that very few strategic acquisitions in recent years have triggered any antitrust concerns.
The following eight points are only applicable to "healthy" companies seeking financing to support customer growth; they are not applicable to "turnaround" situations or for cases in which equity capital would be the preferred financing vehicle.
Semantics about "acquisition" or "merger" are familiar terrain for these kind of exploratory talks, but both companies are "treading water", so the question of "who is buying who" is the 800-pound gorilla in the room.
As an M&A advisor to owners and senior managers of print and graphics communications companies, I'm often asked how we come up with an offer. In other words, how does a business valuation translate into "price" and "structure" in the Term Sheet stage of...