BUYING A PRINT BUSINESS 53 www.printmonthly.co.uk July / August 2025 - Issue 355 ▼ A common activity in several industries is for larger companies to buy smaller businesses in order to provide vital funding and brand recognition been active, whereas general mergers and acquisitions in commercial print are still mostly driven by strategic buyers, retirements, or closures.” Clifford says that M&A activity is only part of the toolkit for generating “real growth” and that approaching it strategically can deliver new processes, experiences, features, customers, and offerings. “In tough markets, where growing the top line is hard and holding margin is harder, it’s tempting to see a deal as a shortcut to growth,” says Clifford, who adds: “Too often, it’s a detour.” Clifford says: “Across the print and visual communications sector, we’ve seen many M&A stories unravel under the weight of unrealistic expectations, with the temptation of a injection of sales, and creating a more robust business model.” After spending a lot of time over the past few years discussing mergers, acquisitions, target companies, and creating different synergies, Clifford emphasises he is a great advocate for these growth options, yet he has seen far too many examples of these endeavours as “life raft grabs”. “A good starting point I often think is: what is the problem to be solved and what is the opportunity that can be capitalised upon?” asks Clifford. “How honest are you being and are you ensuring you are surrounded by critical friends. If it’s an acquisition, it’s a process and don’t miss out any part of it. Involve your team in this, gain their different perspectives, share notes at the end of each day, and ensure questions you have all asked are verified against what others have seen and heard.” One area Clifford warns against is the pitfall of businesses seeing a M&A or consolidation as the ultimate answer, as often those involved will only be left with imbalance and disappointment. Clifford explains: “What people mostly want is a favourable ‘tuck in’ or bolt on, where the acquired business is closed and merged into the buyer’s operations. A quick win and additional turnover. They do happen and it’s always worth having a discussion with your geographical neighbours, catch up over a coffee, and discuss options, but so many waste time and incur costs going nowhere due to unrealistic expectations by one or multiple parties.” Getting the Right Advice One way to navigate buying a business is use the assistance of finance specialists and providers. A specialist in flexible and competitive funding solutions for the print and packaging sectors, Compass Business Finance, has helped several clients with M&As, MBOs, and management buy ins (MBIs). Speaking about this, Mark Nelson, director of Compass, says: “Although M&A activity peaked in 2021 there’s still strong interest in acquisitions, but with a more cautious and considered approach. Businesses are looking for opportunities that help them strengthen their position or diversify their offering. “We’re also seeing more internal teams stepping up to lead MBOs. These teams already know the business and its people well, which makes for a smoother transition and gives owners a clear path to retirement.” When it comes to advice for buying, acquiring, or merging a print business, Nelson recommends starting early to be proactive. “Don’t wait for the perfect opportunity to land in your lap – get out there, start conversations, and seek advice,” says Nelson, who also emphasises the importance of finding a good cultural fit for your business. “Also, try to understand where the seller is coming from. Many print businesses are ‘lifestyle businesses,’ built with care over many years but without a clear succession plan. That can be a great opportunity for someone ready to take the reins and invest in the future,” adds Nelson. Questions that Compass recommend asking when looking to invest in a business include: Is the business keeping up with technology? Does it have a strong customer base and supply chain? Is there a capable team in place to help you grow? And how will you finance future plans – not just the purchase, but also the investments you’ll have to make afterward? Another business which has offered its advice on M&As is Begbies Traynor Group, a business recovery and financial advisor which specialises in advice for the print industry through one of its directors, Graeme Lipman. If it’s an acquisition, it’s a process and don’t miss out any part of it. Involve your team in this, gain their different perspectives, share notes at the end of each day, and ensure questions you have all asked are verified against what others have seen and heard According to data from Institute for Mergers, Acquisitions, & Alliances (IMAA), M&A activity peaked in 2021 and since settled back to levels consistent with data back in 2018 Factoid
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