Buyer Successfully Closes Deal with DIY and M&A Approaches

There are notable exceptions to the common advice that urges printing company owners to steer clear of handling mergers and acquisitions (M&A) without professional assistance. Although going solo is not typically recommended, there are instances where it has proved successful.

A few years ago, we represented a selling owner in a significant city who attracted the interest of a family business owner from another city. This sale marked the buyer’s first strategic acquisition, providing him with a foothold in a new market and sparking an interest in further growth through acquisitions. Subsequently, he acquired another client, followed by an independent purchase facilitated by an introduction at a dinner. While we did not have a formal agreement, the strategic buyer’s experience in negotiating transactions and successfully closing deals paved the way for more acquisitions.

While it might have been better for the buyer to engage professional help for that particular transaction to secure a more reasonable deal, his hands-on approach enhanced his knowledge of structuring and completing transactions. With his appetite for M&As growing, he moved forward with the purchase of a digital firm, leading to a consultative relationship with us as he continued to execute his strategic plans.

In M&A transactions, having a neutral intermediary in the initial stages is crucial to prevent misunderstandings or hostile perceptions. Cold-calling buyers might be seen as aggressive, especially when both parties are located in the same area. A trustworthy intermediary can facilitate communication and build mutual trust between the buyer and the seller, ensuring a smoother process.

As advisors, it is essential to assess the compatibility between the buyer and seller, judging whether there is a cultural fit between their businesses. By making strategic introductions, we helped pave the way for successful encounters between the strategic buyer and potential sellers, boosting his confidence to pursue deals independently.

The strategic buyer’s recent major acquisition highlights the value of experience and third-party assistance in successful M&A endeavors. Utilizing professional M&A advisement is crucial for sellers, ensuring flawless planning and execution to maximize value. While some buyers may opt to manage their transactions independently, seeking professional guidance can significantly enhance the success of their acquisitions, as demonstrated by the buyer’s impressive growth in the commercial printing industry.

The exceptional growth of this buyer showcases the indispensable role of expert assistance in navigating M&A transactions. Owners who are contemplating selling their printing company should strongly consider seeking professional advisement to ensure a seamless and profitable experience.