Preparing for 2016

As the year comes to a close, it’s wise to reflect on the dynamics of the last 12 months – where new opportunities opened, which new factors came into play, and what you and your competition did to gain advantage. Certainly, there were numerous activities that reaped great reward. Mergers & Acquisitions (M&A) was one of the more lucrative.

All said, this year has been a great one for M&A. Recent projections set global 2015 deal activity at 4.58 trillion USD – the highest ever on record. Companies of every type doubled or even tripled in value. While the tone was more downplayed and the mood lower key than the heyday of 2007 (which set the previous M&A record at 4.29 trillion USD), the energy and excitement remain. The label business is thriving. A rise in M&A almost always means a rise in opportunity.

But new growth does not come to bystanders. To capitalize on opportunity, you must command your industry’s issues, and do the things necessary to put you and your company into the action. When you look at your operation today, consider what is happening globally, and the issues that are driving the most change in labels in particular. As we consult with our label company clients, the same themes emerge. Let’s discuss five important considerations for the year ahead:

• Changing government requirements make it difficult to run a global business.

• Customers seek capital-intensive innovation, but remain focused on price.

• Companies struggle to recruit and maintain top talent.

• M&A is creating a changing marketplace.

• Entrepreneurs struggle with M&A. Is it really the right time? What is the best and lowest risk way to get involved? Should I be a buyer or a seller?