Rock Around the Block - The Blog of Rock LaManna

The economy is showing signs of improving, but the lesson learned from the past is that no investor is going to take a flyer on the mere promise of greener pastures.  It’s why today’s successful mergers and acquisitions are largely divided into two camps:  The Haves and the SomedayHope-to-Haves.

In describing the aspects of a successful merger and acquisition, a recent report details what doesn’t work with an M&A.  One of the items they listed that really jumped out at me was the “Corruption.”

Printing owners never ask, “What is a change agent?” They don’t ask about change agents, or change in general, because they don’t care. 

Printing owners often get tunnel vision when it comes to growing a business.  We think that the only way to grow is to get a hot new product, or generate more revenue by adding customers.   But a smart business growth strategy involves a panoramic view – like the move made by 3M to acquire Avery.

A recent article talked about the New England Patriot’s Tom Brady before he became the elite quarterback.  You see, Brady wasn’t always so picture perfect – far from it.  But if you adopt a smart business strategy like the New England Patriots, you can build your own printing team of Tom Bradys.

You want a turnaround strategy to help your slumping business?  Here’s one that will definitely get you headed in the right direction:  Think like a Chinese entrepreneur.

I’d like to dispel one romantic notion printing owners have about selling their business.  I want you to stop thinking that you’re going to cash out when you sell your business.  It’s not going to happen.  An earn-out agreement is much more likely in today’s world. 

You know that situation.  One of your clients is putting the screws to you.  They want you to cut your cost by another 10%, and they don’t care how you do it.  So my advice to you:  Lose the sale and if they’re a publicly traded company, invest in them.

The catastrophic mistake owners make when selling their business is to assume investors prefer prestige over profit.  A perfect example is the owner who thinks his lifestyle, and not his business, will be the target of a strategic acquisition with high multiples.

I’m a huge fan of niche printing companies and innovative technologies.  Right now, we’re seeing a red-hot niche developing with hydrographics applications in plastic decorating and finishing services.