Regulars / M&A | 47If you’re not selling, how does M&A affect your business?You still need to take action to ensure your future, writes Bob Cronin of The Open Approachhe M&A locomotive shows no signs get larger, the connection often wanes. “If you’re going of slowdown. Barely two weeks go by Customers who used to work directly with without another notable transaction. owners or family members are getting Tto remain a small Big companies, mid-sized entities and small reshuffed with reorganizations of the businesses are all getting in on the action – business structure. Where customers independent, make sure shedding off some lesser-known and family once felt valued and taken care of, their names to forge brands that will become the new contact points are making them feel you have the customer next major players. insecure. And some of them now are being Indeed, labels and packaging remains pushed to ordering portals that provide no confdence, stability, one of the most sought-after platforms consultation at all. Add to that the industry and inventiveness to for investors. Despite all of the changes chatter about where the new entity is and turbulence we’ve seen over the last 15 going, and there are more unknowns than sustain a growing and years, the economics and durability of our customers should feel comfortable with.industry prevail. Businesses and consumers This adjustment period can be a game proftable business”still want – and need – the value made changer. Stay in close contact with shared possible on their labels and packaging customers – and prospects – and do what (information, security, trackability, etc.). you can to allay their fears. Further, assess Despite all of the other drivers, people want Moreover, they depend on it. Pricing is your weak points compared to the new to be aligned with the energy, excitement, strong, and proftability follows suit, thus transactions and make sure you’re truly and potential that comes from innovation. making just about any entrance into the taking care of your own. As new entities What beyond-the-box thinking and creative business lucrative. complete integration, sales and marketing solutions are you offering to enrich your Our industry is consolidating, and will ramp up. Show your loyalty to your customers’ businesses?M&A is redefning the landscape. Private customers’ businesses through meaningful This consideration is not typically the equity (PE) frms such as Sole Source efforts and you can secure their loyalty focus of a large M&A deal. Use your size Capital, Wynnchurch Capital, Warburg to yours. and fexibility to get a leg up. Sit down Pincus, Clayton, Dubilier & Rice and others Manufacturing reliability. In today’s with every client (that you want to keep) have become formidable names holding market, everyone is concerned not just and fnd out your value now and where notable investments. With more money about your capabilities but also your you could improve. Then develop a plan to going in manufacturing technology – and reliability in getting the base material and extend your advantage. The new players rising expectations from our purchasers – substrates to execute orders – and securing are promoting their strengths and will it’s tougher to compete. What was once the freight to deliver them. How does your continually become stronger. Your salesforce a welcoming venue for entrepreneurs story compare against your newly growing needs to be out there, working even harder and start-ups is now a venue where the counterparts? While larger players may to protect your existing customers – and players with the most capabilities and have more general purchasing power, they fnding ways where you can gain new ones. solutions win. may not have the personal relationships M&A is bringing great change. And As the market toughens, no entity can and ‘feet on the street’ to have leverage. change brings great opportunity. Size isn’t afford to sit idle. So, if you’re not ready And for those that have long operated the only factor in success. But if you’re to buy or sell, you still need to be taking under a Just-In-Time model, operations going to remain a small independent, make action to ensure your future. Let’s discuss may need signifcant retooling. sure you have the customer confdence, the three primary areas impacted by M&A In addition to these issues, the stability, and inventiveness to sustain a activity and what they may mean to you. challenges of hiring and retaining top growing and proftable business. Customers. Customers are facing labor talent remain. Regardless of the same changing landscape that industry advancements and quality you are. But on their side, the looming controls, craftsmanship will always be a Bob Cronin is managing threat is about partnership. They’re demanded feature.partner of The Open concerned about the new ownership and How can you respond to these issues Approach, an M&A their commitment to the customers’ now, while your larger counterparts work to frm focused exclusively businesses. They’re being told that all mobilize their strengths? The small, nimble, on the world of print. will remain the same, but what’s actually and intuitive label enterprises have a huge To learn more, visit happening is largely different. opportunity to carve real advantage. www.theopenapproach.net, This business has always been one Innovations. Finally – like all great success email bobrcronin@aol.com, built on relationships. But as companies stories – those who innovate dominate. or call (+1) 630 542 1758Apr - Jun 2022