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M & A Opportunities in the Label Industry

There is no shortage of strategic or financial buyers looking for healthy label converters to purchase, either as a strategic investment or as a “tuck-in.” If you have been contemplating a sale, now may be the right time to begin the process. The conditions are good, with borrowing costs low and consolidations becoming an integral part of many companies’ growth strategy.

The process to take your company to market is a long and tedious one. First, you need to get a handle on what your company is worth. This will require a review of your current and recent financials for the last few years. This will be needed to prepare a valuation of the company as a going concern. Next, you should be thinking of having an outside appraisal to determine the fair market value of your equipment. If the company owns any real estate, then a real estate appraisal should be completed as well.

A review of the company’s web site needs to be made to determine if the information is current and paints a true reflection of the company’s present strengths.

An overall outreach program needs to be developed to identify potential buyers, determine how to contact them, and prepare a structured follow-up process to determine their interest.

An Executive Summary (Teaser) needs to be prepared to help entice suitors, as well as an overall binder describing the company’s capabilities and markets served.

A campaign to get information out into the market place concerning a potential opportunity needs to be introduced into trade journals, news releases, and other mediums.

As you can see, there is a significant amount of work that needs to be completed before you actually begin the sale process. If you want to chat, give me a call at 201-523-6326 or email me at tcobery@napl.org.

label converters, , , , strategic investment, Tom Cobery, tuck in,
Tom Cobery

About Tom Cobery

Dealing with the day-to-day needs of running a busy printing operation often leaves company leaders little time to plan for the future of their enterprises on their own. Tom works with chief executive officers and senior management executives in the Tag and Label Industry to develop growth opportunities through strategic transactions, new markets, or new service opportunities. Available for consulting on individual projects, he can also be engaged to serve as an Advisory Partner, helping executives guide their company into the future, serving as an impartial sounding board for ideas, and working with them to set the right course for continued growth and greater profitability. Tom’s personal experience as a Tag and Label Industry company president and chief executive officer, plus his extensive networking with other industry executives through his volunteer leadership activities with the Tag and Label Manufacturers Institute (TLMI) give him a unique perspective on the tough issues today’s company leaders face in this specialized segment. Companies engaging Tom will find his insight and independent advice an invaluable asset in helping them achieve their growth and profitability goals. More than a consultant, Tom Cobery wants to be your trusted Advisory Partner.

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