Reflections on 2016

They say there is no better way to prepare for your future than to embrace the past. The year 2016, then, deserves a big hug. Our great labels and packaging industry once again grew global sales, with rising demand for digital, tracking and security, finishing and new innovations. We also increased acquisitional interest from strategics and private equity buyers across numerous segments and amongst players ranging from converters to suppliers to manufacturers and specialty providers.

All this, as emerging dynamics roiled other markets. While IPOs took a dive and other M&A transactions faltered, our industry’s deals stayed intact. This is because of the positive forces behind labels and packaging – and our constituencies’ confidence in our long-term, lucrative future.

So why are we faring so much better than our global counterparts? Here are the top six drivers behind our success and M&A interest.

1. Superior business model
2. Technological and other advancements
3. Fragmented industry
4. National and global expansion
5. Loyal customer base
6. Numerous exit opportunities

Next steps

No matter how much you enjoy running your company now, there will come a day when you will want to move on. It may be ‘someday’, six months or tomorrow. At the end of every successful entrepreneurial venture can be the equally successful sell, dissolution, or succession plan.

The good news: You have options. These six factors will continue to drive interest from strategics, private equity, and other buyers. You can choose to sell today, next year or even further out. You can sell outright or keep a management role or an advisory stake. You can plan around important people and contributing family members. And you can make your exit seamless through measures and practices that address the expected hurdles. Just remember that timing is key. Windows of opportunity do change. Remember the lessons of 2008.

I am happy to help you at any time. Our exclusive network of industry-specific advisors can ensure you address all your objectives and get the ultimate value from your transaction. In the meantime, keep up the good work.

Read the full article in L&L issue 5, 2016, and here

Read predictions for the year ahead from the label and package printing industry here