Today's blog post is an early "heads up" that we at NAPL believe there will be a resurgence of interest among private equity firms to invest in the print and graphics communications industry.
We are reading smoke signals and tea leaves that suggest the next generation of financial buyers will be seeking investments among leading companies (as that term is defined in 2010 NAPL Strategic Perspective report). The following criteria is a good starting point for assessing whether your business stands a realistic chance of attracting interest from this kind of buyer:
- consistent profits capable of being valued
- scalable vertical market expertise and/or cross platform capabilities
- modest debt levels
- strong management that extends beyond founder/entrepreneur
There are other important criteria of varying degrees of importance, so if you are thinking of taking chips off the table or formulating a plan to transition from ownership, an NAPL Business Valuation is a great starting point for determining the value of your print and graphics communications business; this is based on valuing the earnings as a "going entity" and also valuing the underlying assets such as general intangibles and equipment.
Feel free to contact me for a confidential discussion on whether and to what extent you should consider meeting the private equity folks as they come out of their caves over the next 12 months.
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