Regulars / M&A | 53Where do we go from here?The rewards for taking a focused direction are greatest when others cannot commit to move, writes Bob Cronin of The Open Approachhe fallout from Covid-19 continues to well-positioned to move forward under the “Sitting and waiting deliver one new blow after the other. concerns over massive infation, continually Just when we think things are getting changing health and safety expectations, Ton what might better, we encounter another hurdle. Rather labor quality and availability, and market than striving to increase sales and clients, fux. The multiple issues we see are real, happen is a ‘going out our great label and packaging industry is and the only way to get over them is to of business’ strategy”just striving. Striving for normalcy. Striving do something, regardless of how helpless for opportunity. And striving for things we may feel.to calm down long enough for owners to We’ve waited too long following the path opportunity, and you have plenty of options fgure out the next best move to grow that Covid has taken us. It’s our turn to take if you’re in a position of strength. There are their business. control back. Sit down with the individuals a lot of potential suitors out there – local The energy surrounding our industry who’ve helped build your great company competitor, larger strategic, private equity, has historically been one of vibrance and and decide what you want for your future. etc. After building your business for so long, positivity. But we’re now feeling that we’ll You’ve weathered many storms before, and you’ll want to fnd the very best match. face Covid issues forever. We’re focusing on this is just another one of them. Here are Decide where you want to be (full exit, shortages of substrates, suppliers, customers your options. advisory position, sell only a business unit, and employees. Yet the biggest shortage is Invest and grow. Most label and etc), and what you can count on among our confdence. packaging owners have had their eyes on a your top leadership, so you can make the As advisors, we hear the frustration: specifc piece of equipment or technology best and most proftable decision. ‘We can’t do this anymore’, ‘We can’t for a while. If you’ve done your ROI analysis, Form a strategic partnership or last through this’, and ‘I give up’. These this might be the ideal time to dive in. alliance. If none of the frst three sound comments are no longer just quips. They’re Many of your competitors have stalled, enticing, it’s still important to build. Times gasps trying to catch fresh air. Attitudes waiting for the post-Covid infuence to of challenge are times of opportunity. do many times end up representing our get better – and ultimately missing out What’s your biggest weakness? What future, and many owners know they aren’t on potential present opportunities. Assess capabilities do you need to become the this purchase in light of today’s landscape. leader in your market segment? What are How does it provide for your customers your clients struggling with, and what can now? Can you manage it with current you add to ease their pain? Some alliances personnel? Can it solve any of the issues can be simple, like adding a storage partner brought about by the pandemic? Talk to to improve material access or beneft from your customers and get a commitment, purchasing economies of scale. Others then make the move. may be more expansive, such as bringing Acquire. One of the fastest ways to grow on a digital partner or having abilities on is through acquisition. However, buying different substrates. If you have an existing another company is a big commitment, and relationship, make sure to formalize it and an acquisition should always be approached lock in lower prices now.with caution. More businesses than ever Two years ago, we didn’t know what the are open to a sale, which means that while future would bring. And we don’t know how you have more options, you also have more Covid and other dynamics will come into potential pitfalls. play two years from now. Rather than just buying your failing The rewards for taking a powerful, neighbor, make sure you have a strategic focused direction are greatest when others plan for an add-on. Determine where your cannot commit to move. It’s time to buy biggest gaps and needs are, as well as the press, create a solution, resolve supply what you might beneft from most chain issues, acquire, partner, or exit. (specifc customers, products, supply Sitting and waiting on what might happen chain/logistics, territories). is a ‘going out of business’ strategy. Set Then conduct your due diligence to make your sights high and commit to making sure you know what you’re getting into and it happen.that its structure, people, and capabilities can be integrated cohesively into your Bob Cronin is managing operation. Seek a professional advisor partner of The Open for support.Approach, an M&A Sell (or divest). Entrepreneurs in all frm focused exclusively positions sell. It’s not a matter of selling at on the world of print. a high point or out of desperation. It’s about To learn more, visit whether you can still make your company www.theopenapproach.net, thrive or whether someone else will do email bobrcronin@aol.com, better with it. An exit can bring a lot of or call (+1) 630 323 9700Jan - Mar 2022