Exciting Year Ahead for M&A Deals

Following the completion of the 2024 Presidential election, the veil of uncertainty that overshadowed the lead-up to the event has lifted. This paved the way for what could potentially be an exceptional year for mergers and acquisitions (M&A) in the printing industry in 2025.

One of the key drivers of this optimistic outlook is the robust state of the national economy. Despite fluctuations, indicators like declining inflation, steady employment, and consumer spending resilience offer a strong foundation. Although the possibility of recession can never be entirely discounted, historical trends suggest that the likelihood of one coinciding with a new administration is low.

Insights from the economists at PRINTING United Alliance reveal a temporary slowdown in industry growth during the first half of 2024. This led many printing business owners to delay their M&A plans. However, past experiences show that such pauses do not necessarily foretell the future. Despite initial setbacks, 2023 was an almost record-breaking year for M&As and 2025 promises a solid performance as well.

Buyers remain highly enthusiastic, actively seeking high-performing printing businesses for acquisition. The ongoing consolidation in the industry is fragmenting it, creating opportunities for synergy and cost-efficiency. The trend suggests that it is an advantageous time to be a seller, particularly for businesses that attract financial buyers.

A defining force shaping M&A activity is the widening gap between the industry’s “Haves” and “Have-Nots.” Companies embracing advanced technologies and diversifying their offerings are positioned as leaders, leaving others at a disadvantage. Those unable to keep pace find themselves in dire straits, often leading to decisions to sell to a more advanced entity. This dynamic attracts attention not only from financial buyers but also from search funds seeking to acquire and manage companies for strategic growth.

As 2025 unfolds, buyers are expected to remain active, focusing on strategic acquisitions that benefit all parties involved. While there is significant competition in the market, it has not substantially impacted deal costs. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) multiples remain stable, and reasonable asking prices prevail, signaling a conducive environment for both buying and selling.

The post-election uncertainty is poised to give way to questions regarding the new administration’s business policies. Nonetheless, the industry is primed to embark on M&A ventures with renewed enthusiasm post-political distractions. With growth resurgence on the horizon, opportunities for M&A transactions are likely to blossom throughout the year.