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May 2008

May 08, 2008

What To Look For in the Restroom of a Printing Company You May Want to Acquire

I am serious: the restroom of a printing company can give you a pretty good quick reading about the company's prospects for success. "Huh"", you ask. After having visited 100s of companies over many years, I can assure you that troubled companies tend to run out of and not replace toilet paper and hand towels. Whether this is because of the cost or simply neglect, it implies a lack of caring about the company's infrastructure. It sends the message that "we don't care" about employees or company visitors such as customers, suppliers, or lenders.

Ma_004 Printing companies who treat their employees and guests with such disregard as to lack toilet paper and/or hand towels are not likely to have embraced progressive organizational development practices and cultural norms conducive to success. Leading companies do not forget about restroom basics. 

Next time you visit a printing company and find no toilet paper or hand towels in the restroom, ask yourself whether this is a one time occurrence or a crack in the organizational fabric that is a window to the company's culture. Let me know what you find.

May 06, 2008

Who is Buying Printing Companies

I just spent a day with a new client who is buying a printing company. The guy in the photo who is in good shape is the client, I'm the guy next to him with the blue tie. Mike_leone_001

What makes this "news" in my little world is that this guy is coming out of corporate America. He is an "individual buyer" in a sea of "strategic buyers".

You would think that individual buyers have played a role in many of the printing industry M&A assignments that I've been involved with over the past 18 years. Actually, there's just been a handful of entrepreneurs. It's been nearly all Strategic Buyers, mostly privately-held businesses, many family-owned, who are seeking to  grow by Acquisition and/or survive by Merger.

Here's the breakdown of who has been buying printing companies:

Strategic Buyers: 95%
Individual Buyers: 2%
Financial Buyers: 2%
Not Sure: 1%

More on this topic down the road.

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