Trade Shows Are Where It’s At!
I am thrilled that in-person trade shows are back. I love being in the midst of the action, getting a sense of how the industry is evolving. Trade shows are also a fantastic place to reconnect with dozens of friends, clients, and colleagues and make new contacts.
Besides new equipment and old friends at trade shows, I also see a lot of potential buyers of businesses. Strategic and financial buyers are constantly on the prowl for the right business to buy. Although they see hundreds of deals a year, they only move on a select few.
Good Advice
Some people who seek acquisition targets at trade shows have some pretty specific advice about what they are looking for from sellers. Here’s a quick sampling.
Chemistry comes first.
While strategic buyers do expect to get a clear-cut view of your company’s financials, the long-term success of a deal is more about how well the culture at your company aligns with that of the buyer. A certain amount of chemistry must exist between the buyer and the seller or the post-sale transition period will be a disaster.
Trade shows can be a great place for buyers to look for potential companies to buy because attendees come to show either to expand their skills and knowledge or find technology to help the company grow. Meeting eye to eye makes it easier to judge an individual’s integrity.
A buyer can get a sense of your company’s culture if they see employees from your company making educational presentations or participating in panel discussions. Buyers can also strike up conversations with employees from companies across the U.S. at cocktail parties or sit-down breakfast, lunch, and dinner sessions.
Get to yes (or no) as soon as possible.
Buyers look for companies that are already prepared to receive offers. The buyer will want to close a deal with the right seller as quickly as possible.
But just as importantly, the buyer wants to be able to quickly assess whether or not it makes sense to even consider buying your company. If it’s a no, you will get a sincere thank you or a quick pass that saves both parties time. No one has time to kick tires for weeks on end.
Make it a proprietary deal.
Buyers bypass many businesses because the company is already shopping around for the highest bidder. So it won’t be a proprietary deal. The synergies between the buying and selling company have to be realistic. The deal must be tailor-made for the buyer and the seller.
Does that mean you can’t announce your company is for sale in traditional ways such as the Internet or social media channels?
It really has nothing to do with using marketing techniques to attract potential bidders for your company. It has more to do with the buyer and the seller completing their respective due diligence and understanding that each group is perfect for the other. Make it proprietary, and you’ll close the deal infinitely faster.
Be ready.
Before you attend your next trade show, think about how you would describe your financial situation, operations, management structure and your company culture to someone who might be interested in buying your company. Paint the picture with incredible detail.
The seller’s preparation and ability to meet the buyer’s timeline are critical to serious, funded buyers. The need to be “willing, ready, and able” is real.
Meet Us at Amplify
LaManna Consulting Group is a proud sponsor of the Amplify event June 14-16, 2022 in the Minneapolis Convention Center. It is sponsored by the Association of Print Technologies (APTech) and the Foil & Special Effects Association (FSEA).
The exhibits and education at this new in-person event will focus on added-value print finishing methods and technologies for print and packaging designers, commercial printers, print finishers, binders, mailers. Network with key players in the finishing cycle, learn best practices, discover emerging technologies, and hear real-world success stories.
As a previous owner of the Vomela Specialty Company in St. Paul, I know firsthand how innovations in print finishing can bring competitive advantages to your business.
Meet me at Amplify booth #235 and let’s chat about new innovations, the best of the show, the future of print, your business, my experience … whatever you want to talk about.