How does a business grow in a consolidating industry, like printing, with a traditional market that’s shrinking? For one franchise organization, acquisitions have proven to be a successful strategy to boost the sales of its franchise members.
During the first half of 2013, Alliance Franchise Brands LLC, the parent company of Allegra Network LLC, has added more than $3.9 million in system-wide sales through acquisitions for its Marketing & Print Division franchise members. These deals have ranged in size from $28,000 to $1.4 million in sales.
According to Bob Milroy, president of Alliance Franchise Brands Marketing & Print Division, "Finding independent printers who want to leave the business and providing them with a solid exit plan is a win-win-win proposition. It provides an avenue for the seller to feel confident he or she is leaving their business in good hands, offers growth in sales and profitability for our franchise members, and it strengthens the network as a whole. In many cases, the selling owner remains with the combined company, maintaining employment and earnings even as they extract their hard-earned equity from the business they sell."
In markets where the company does not have a current franchise member, it matches independent printers with buyers who want to join the franchise network. "Our MatchMaker™ program has an established record of supporting new owners to take a business forward by transitioning the focus toward growing areas like more sophisticated, variable data/image printing projects, Web-to-print online ordering systems and marketing and creative services, in both the print and digital channels," said Milroy.
During the past decade, the company helped more than 250 independent printers exit the business through its MatchMaker and acquisition programs.