Paramus, N.J., June 5, 2008 – The vast majority of the 35,000 domestic printing industry players are poised for consolidation for the foreseeable future, according to NAPL's Mergers & Acquisitions Advisory Services team. Although many think that the time has passed for mergers and acquisitions, opportunities are still abundant according to John Hyde, vice president, senior consultant and head of NAPL's Mergers & Acquisitions Advisory Services. NAPL is the not-for-profit management association for business excellence in the printing and graphic communications industry (www.napl.org).
 
"Despite the long-term consolidation that has occurred in the printing industry, there are still many companies available for both buying and selling, particularly as a means to augment internal growth," explains Hyde. "This is true for the leading companies that comprise the top 10% of our industry, that offer a strong value proposition and grow on average 12% annually, and are exploring opportunities to achieve even greater returns by aligning themselves with companies that offer expanded capabilities.  It is also true for the 90% of the industry that is treading water or worse and needs to align with a stronger partner."
 
"It's an exciting time because change breeds opportunity. Even for those industry players that are asking the question 'Should we fix it, sell it or liquidate it?' a merger can be a very effective and strategic tool for growth or, for others, a seamless exit strategy," Hyde adds.
 
In an effort to help guide member companies as they implement strategies for growth and sustainability, NAPL offers Mergers & Acquisition Advisory Services as part of its Print Consulting Group. Hyde has been involved in printing industry mergers and acquisitions for 18 years, and he joined NAPL in 2004 to further develop the capability. "Founded on years of practical experience and unparalleled industry know-how, our Mergers & Acquisitions Consulting team brings objectivity to the table while helping our printing business owner- and manager-clients more critically evaluate their options, identify and communicate with potential candidates, formulate strategies, minimize their risk and execute the transaction," Hyde notes.
 
 
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"NAPL is totally wired to the printing industry. We know the players and those who may be looking for a partner," says Hyde. "In addition, we also have extensive research capabilities to help clients identify and thoroughly vet potential partners. From helping to put potential partners together to structuring and guiding the transaction, NAPL has become a trusted M&A advisor to the industry."
 
For example, NAPL advised Wordsprint, Inc., of Wytheville, Va., in its acquisition of competitor Christiansburg Printing on the negotiated price, structuring the terms of the deal and announcing the transaction. The client not only gained hundreds of new customers and added 50% more revenue to its plant, but also significantly expanded its market presence in Virginia.
 
In another example, Craftsmen Photo Litho, a third-generation business in East Hanover, N.J., was in need of reinvestment and direction, despite the owner's hard work. NAPL demonstrated that building the business from its current state would require commitment and risk that the current owners were unwilling to take, and so the owners embarked on a sale of the business.
 
NAPL procured 16 potential buyers out of about 75 initial responses within a 30-day period, and later narrowed the candidates down to a short list. The effort resulted in a sale of equipment and general intangibles to Twill Printing of Fairfield, N.J., a company similar to Craftsmen in terms of philosophy and values. Craftsman's principals wanted a graceful exit from ownership, and the successful transition of Craftsman's accounts to Twill resulted in very few customer defections, which maximized the value of the business for the new owners.
 
NAPL's Print Consulting Group comprises the industry's foremost experts on a wide range of commercial printing business management issues including strategies for growth, financial management, operations, professional and organizational development, mergers and acquisitions, sales, and marketing. Consulting Group clients benefit from the knowledge sharing and practical experience its consultants gain from working extensively with NAPL's entire membership.
 
"While many trade associations simply aggregate information, NAPL is unique because our consultants and staff experts add proprietary research and best-practice insights for our members," notes Tim Fisher, NAPL executive vice president and head of NAPL's Consulting Group. "As a result, we go beyond merely packaging what our members already know and deliver real value-added information that can directly impact their bottom line. In this regard, NAPL has set a new bar for industry trade groups and, more important, has become an invaluable business partner to our members."