Although it is counter-intuitive given the print and graphic communications industry's challenges, my NAPL colleagues and I continue to see that there are more "strategic acquirers" than there are seriously interested sellers.
Owners of companies who seek to grow by gaining new customer relationships and added capabilities through strategic transactions may find themselves competing for opportunities. This is "just normal" for acquisition-minded owners who are experienced at juggling various M&A opportunities.
But what should an owner do if his prime candidate is dating a rival and seems headed for "being unavailable"?
My recommendation is to keep in touch periodically with the potential seller just so he/she knows you remain interested. Understand that you may be a "second choice" right now, but experience shows that a "second choice" can become the "first choice" if one of three things happen:
(1) the second choice blows the doors off with a high price paid in cash [NOTE: we do not recommend this approach];
(2) the first choice backs off or somehow the process stalls; or
(3) circumstances change and priorities are "re-set".
Keep going with consistent and clear communications, follow up meticulously, and remain cordial. Most of all, we encourage owners to NOT BURN BRIDGES in the courtship process, no matter how frustrated they may be.
Of course, my clients know that it is a pot calling the kettle black, for ME to be talking about PATIENCE, right?!
John
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