Should I sell my print shop? How could a succession within the family succeed in the printing industry? These are the questions currently being asked by many medium-sized printers. Parallel to the consolidation of the industry, every second printer is already facing the question of succession. Already today, every second company director is older than 55. If nothing changes, in just 5 years more than 70% of all print bosses in companies with a turnover of between 500,000 and 25 million euros will be older than 55. Many of the more than 3,700 affected companies, most of which are family-owned, will then be facing a generational change at the latest. What should you look out for when preparing the handover of your print shop?
The 3Ws: What should be handed over to whom and when?
From their mid-50s, family entrepreneurs should think about their Company sale think about. Because the following applies: As the age of the company head increases, the probability of a disorganised emergency succession due to illness or death increases.
Consequently, a timetable of which assets are to be handed over to whom and when has proven very helpful in practice. For entrepreneurs (and their families), individual baton change workshops are very suitable for preparation. Here, entrepreneurial families develop an individual succession strategy based on the personal needs and goals of all those involved within the framework of a structured process.
At the end of the day, there is usually one of the following follow-up variants.
Which successor model suits me?
Family internal handover of my print shop
Many medium-sized printers want one of their children to take over the business. If there is a suitable and willing successor in the family, he or she should be involved in the business in good time. Company be introduced.
In parallel, you should develop a succession model together with your family. There are a number of ways to transfer your business. In addition to the sale of the print shop, this can also be a (partial) gift. When choosing a succession model, the emotional aspects of those involved should play a role alongside tax considerations. Because without taking into account the individual wishes and needs of those involved, a handover process can quickly fail.
Furthermore, any entitled siblings should be compensated accordingly by transferring assets. As a general rule, the person who shoulders a higher risk should also receive a higher share of the estate. A company valuation helps to realistically justify the value of the company and to determine its share in the assets to be transferred.
The transfer of equally large parts of the company to all the children offers enormous potential for conflict, not only in the case of printing companies, and can endanger the company’s existence. As a consequence, the fanned-out ownership structure significantly restricts the freedom of decision of a (family) managing director. With such a - supposedly fair - construction, relinquishing entrepreneurs risk not only disputes among the successors but also considerable financial damage for themselves and future generations.
Third-party management
The consolidation of the printing industry that goes hand in hand with the far-reaching process of structure and change increasingly means that no suitable successor can be found within the family. If the company is to remain in family ownership, a suitable external manager must be found in good time and trained in the company. This requires careful planning and usually takes several months. A job description or a profile of requirements for an external managing director should also be part of every business plan. Corporate emergency kit.
When is the sale of a printing company advisable?
If succession within the family or external management are out of the question, you should seriously consider selling your print shop. You should also plan well and early for this case: because a company sale takes on average one to two years.
Thorough preparation of a print shop sale often pays off in terms of the price to be realised. Complementary to a Business valuation a detailed exposé answers many questions that a potential external successor may have about the company and its market position as well as the figures.
Which companies are particularly attractive?
Attractive printers do their homework: Because these companies have a special unique selling proposition. This can be special know-how or a high value-added depth or breadth with which they successfully occupy niche markets. Many companies are looking for companies with a high degree of digitalisation or in the area of new industrial process technologies. Technologies that streamline, accelerate and make processes more cost-effective are also interesting. This combined with a broad customer base without dependencies on individual customers makes it easier to sell a printing company.
Shortage of skilled workers becomes a brake on the economy
According to the German Printing and Media Industries Federation, the Skills shortage in the printing industry despite consolidation, more than 60 per cent of companies are already in business today. A solid employee base can therefore motivate printers to take over other businesses. However, the employees of smaller printers in particular are often comparatively old, so that the planned Company sale is made more difficult. Before selling their print shop, company bosses should make every effort to rejuvenate the workforce in a targeted manner.
Entrepreneurial shortage clearly noticeable in printing industry
The heads of family-run medium-sized printing companies tend to be older. Thus the shortage of skilled workers is already leading to a shortage of entrepreneurs. This is because young and well-trained print specialists often prefer to work as employees rather than pursue entrepreneurial ambitions. The shortage of skilled workers in the industry is now being followed by a shortage of entrepreneurs. And this makes it more difficult to sell a printing company.
Who buys a printing company?
Consider the following buyer groups for the sale of a print shop:
- Printing groups: Large printing companies are less likely to be considered as strategic investors due to the overcapacity in the industry. Often only larger printing companies with a turnover of five or ten million are of interest to them.
- Medium-sized printers: Especially when selling smaller printers, it is worthwhile to approach established medium-sized companies. After all, it is comparatively easy for these companies to tap into new customer groups, expand their product range or technical expertise through acquisitions. As a result, many SMEs are subsequently looking specifically for printing plants for sale.
- Financial investors: Private equity investors or family offices are also on the lookout for printers for sale. These investors often hold shares in printing companies which they gradually add smaller companies to as part of a buy-and-build strategy. Here, too, they are often looking for synergy potential, new technologies or customer groups.
- Management buy-ins (MBIs): Printing companies with a turnover of between two and five million euros are particularly interesting for MBIs with experience in the industry. However, due to the consolidation of the printing industry, industry-experienced prospective buyers are looking very closely at the companies. Against the background of the strong consolidation of the industry and the parallel shortage of skilled workers, many of these prospective buyers tend to continue working as employees.
What makes it difficult to sell a print shop?
Essential essential for a successful company sale are sustainably generated profits and a sustainable business concept with clear unique unique selling propositions. However, the following points make the sale more difficult of printing companies:
Lack of a second level of management
Industry observers expect further consolidation, especially for small and medium-sized printing companies. This is because family businesses with turnovers in the single-digit million range often have to overcome another challenge. The structures of these companies are often only tailored to the owner. Many of these companies simply lack a second level of management to keep the company going in the long term without the boss. As a result, the establishment of a second management level or the hiring of a non-family managing director is advisable.
High average age of employees and machines
Dependencies to a small number of major customers, an outdated machine park or a higher or a higher average age of the workforce make it even more difficult to sell a printing plant. additionally.
Geographical location influences investment
Particularly in the sale of small and medium-sized enterprises, we find that geographical location plays a major role for acquirers. Larger investors often look for locations with good transport links. Ideally, these are located near conurbations.
Unfavourable peripheral, border and island locations quickly have an impact on the success of the project or the achievable purchase price. MBIs that have a special personal relationship to the region often come into play here. For MBIs, the geographical location of the company plays an even greater role. After all, very few individual interested parties want to move together with their family for a company purchase, so that only a maximum of one hour’s travel time is realistic.
Inadequately prepared transaction process
Good preparation of the handover process always pays off for the seller. This is because prospective buyers expect meaningful documents that present the business model and a resilient and, above all, adjusted set of figures before an initial meeting.
You want to know whether a sale of your print shop could be worthwhile? Send me your appointment proposal for a confidential and non-binding phone call or call me now at 05461 80 92 840 an.
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Photo: ©stux / pixabay (CCO)
Investors are looking in particular at printers with clear Unique selling propositions or specialisations. Particularly interesting are profitable companiesthat successfully occupy niche markets. This success can be based on special know-how or a high degree of added value. Many companies are looking for printing plants for sale that have a high degree of digitalisation or special industrial process technologies.
1. profitable business models and low dependence on a few large customers.
2. independently deciding second management level. Low dependence of management on the person of the shareholder.
3. young employees, machinery and equipment.
4. good preparation for the print shop sale.
5. conveniently located and modern sites.
Due to the overcapacities, larger printing groups come as classical strategic investors are less likely to be considered. More interesting are family-run printers who are looking for new technologies, products and extensions. Other interest groups are traditional financial investors or Individuals with industry experience (MBIs). The latter are particularly interesting for family-run printers whose turnover size makes them too small for financial investors and strategists.
