Regulars / M&A | 39The key forces driving M&AYou need to jump in now, says Bob Cronin of The Open Approachf there’s one thing you can count on “Labelexpo Americas comes at the perfect time”in our label and packaging industry it’s that there will always be change. ILooking at the last several months, this is players can yield one great operation. If also by market, materials, or geography. And an understatement. Material shortages, your neighbor gets acquired, how will this revenue possibilities abound as such entity logistics entanglements, hiring challenges affect your business? If you become part of gets bigger.and the continuing effects of Covid-19 a notable model, how will it affect yours? Low capital expenditures. Our business have changed the way we can actually run Attractive growth rates. The global is unique in that a small array of equipment our companies – and the ways we can be printed label market reached a value of can respond to a signifcant number of proftable. With more changes looming (e.g., USD 42.3 billion in 2021 and is projected demands. Moreover, growth is being driven recessionary adjustments, infation, the to achieve a compound annual growth rate more by versatile, digital technologies over effects of the war in Ukraine), it’s time to (CAGR) of 4.5 percent from 2022-2027. It mammoth printing presses and operational reassess our trajectory and decide what we also boasts very high proftability. This is requirements. This makes it easier for need to do now to stay successful. notable as many industries are declining private equity frms to acquire label Labelexpo Americas comes at the perfect and/or struggling. Still, label companies companies and still provide for the growth time. This gathering of industry pundits, will need to be adept to manage rising capital needed.frontrunners, experts and colleagues is your customer pricing pressures and purchasing Synergies with other investments. opportunity to gain wisdom and insights on pullbacks. Those that have economies of Private equity investors can gain synergies where our business is headed and how you scale (i.e. as part of a larger, more nimble they can put to work in the supply chains can get in front of it. investment platform) will capture a larger of their other portfolio companies that I’m pleased to be part of this great share of customer spend. use labels and packaging. This is a factor conference again this year and facilitating Success stories of prior PE that can have a signifcant effect on the two sessions specifcally to that point. The Investments. The last two decades have opportunities created for all conjoined frst will examine M&A in general, and the been extremely favorable for labels and entities. second will look at how it is changing in packaging investors. Numerous lucrative Growing your company in the best and light of new dynamics in our marketplace and successful plays have been made, and most proftable ways is the objective of and fnancial world. many more continue to prove out. every entrepreneur. M&A needs to be Private equity remains a signifcant force The great, well-publicized stories help part of your strategy. Every company will behind M&A today and is especially active more deals perpetuate. Plus, with the ability ultimately be a buyer or a seller. Stop by in the label space. While major entities are to look at past transactions and evaluate my sessions for a deeper discussion and also players, private equity is new, incoming their successes and shortcomings, new gain a better understanding of what’s at investment into our industry and can often investors are able to replicate workable stake. What you learn now may be integral shape what’s to come. strategies and get their models off the for how you grow and thrive in the future. To thrive in today’s environment, we ground quicker, with better direction I look forward to meeting you and helping need to understand where we stand. With and results. you maximize your opportunities.many of the new issues we now face, what Multiple potential models. Label and are the forces still driving investor interest packaging products are vital and visible in Bob Cronin is managing and what will these mean to you? Here’s a just about every type of business there is. partner of The Open highlight of just a few items we’ll discuss: This enables our industry to perform well Approach, an M&A Industry fragmentation. The label during economic changes as it does not consultancy focused and packaging industry remains highly rely heavily on any one sector. Additionally, exclusively on the world fragmented. There are numerous small our products are often a solution to of print. To learn more, and medium-sized players spread out market challenges (i.e. tamper-evident/visit www.theopenapproach.geographically, with no single player trackable/RFID labels and other packaging net, email bobrcronin@aol.com, or call or in command. Fragmentation intrigues safety features during Covid-19), further text (+1) 630 542 1758. To register for investors because of the rollup potential. enhancing our value. This allows an acquirer the Labelexpo Americas conference, visit Bringing together several good, small to build an enterprise by many models and www.labelexpo-americas.comJul - Sep 2022