Jim Russell with New Direction Partners on the benefits of the company doing a "tuck in" acquisition
Published on March 15, 2010
I'm Jim Russell, a partner with New Direction Partners and I wanted to talk today a little bit about the benefits that accrue to the person that's doing the talking or the company doing the talking. We recently closed a deal, two similar sized companies that came together; first and foremost, a lot of people always realize their savings in space. These two companies were able to combine into about 60 percent of the space that they were in as separate companies, so they had immediate savings in rent. In addition, they went through and kept the best of the employees that they had between the two companies. Were able to kind of cherry pick who was the best leaders, the best managers among the companies, who were the best pressman, the best pre-press operators.
In addition, they did similar with the equipment: they kept the best equipment and were able to sell off the excess equipment to generate cash and pay down debt.
From the buyer’s perspective, he was able to do this deal with no cash at closing. So it worked out very well. Grew their sales about 40 percent and were very profitable from the second month after the merger was completed.
Frank Has Some Cross Words for Arial
Published: July 20, 2018
Arial is Helvetica in sheep’s clothing. The subject came up because Frank was doing a crossword puzzle and the clue was “Popular sans serif font” and Helvetica would not fit.
The Advantages of EFI InNova Pigment Inks for Textiles
Published: July 19, 2018
Paolo Torricella, Textiles Segment Manager for EFI Reggiani, describes the benefits of EFI InNova pigment inks for direct-to-fabric printing from vibrant colors to a lower impact on the environment.
Champion Thread Company Brings Manufacturing Back to the U.S.
Published: July 18, 2018
Matt Poovey, President of Champion Thread Company, discusses the importance of automation in bringing textile and garment manufacturing back to the United States. This industrial sewing thread manufacturer is leading the way with a number of innovations.
The Future of Digital Print for Packaging
Published: July 17, 2018
Sean Smyth with Smithers Pira discusses the value of the Digital Print and Packaging show and shares some data on packaging forecasts for digital print.
Speed Outweighs Cost in Textiles
Published: July 16, 2018
Karsten Newbury, Senior Vice President and General Manager of Software for Gerber Technology, discusses the trends driving change in the textiles industry. Now more than ever, the industry is about speed with pressure on brands and manufacturers for faster time to market.
Frank Interviews Echo Communications Owner Howard Hoke
Published: July 13, 2018
Frank interviews Howard Hoke, COO and Owner of Echo Communications, a 14-employee print shop based in New London, N.H. Howard is an RIT grad who wound up owning his own printing company. Even though he has digital printing, he still uses offset presses, including a recently acquired used Heidelberg. Where did he find a press operator? Wal-Mart!