One part in particular of a recent Sign Media Canada article caught my attention. The industry expert being interviewed pointed out that “we’re seeing a lot of consolidation.” If true, this could be quite profound for an owner looking for an opportunity to sell the shop.
The interviewee claimed that, ” Larger printing companies are buying a lot of medium-sized printing companies, consolidating, and looking to add to their offerings for their clients.” He added, “Larger sign companies are buying and having strategies to buy small- or medium-sized sign companies to augment their offerings for the customer base they’re looking for, or looking to buy companies that have customer bases they’re looking for, to add it to their own internal roster.” Perhaps not explained very well, but you get what he’s basically saying.
So, what this could mean for your smaller print shop is an opportunity to sell and ride off into the sunset. But sitting waiting for a buyer to come calling might not work well. You should be proactive about it by finding out who these larger acquirers are and then approaching them.
And please remember that if you get involved in a potential buy/sell transaction, have an expert by your side.