The first time I tried to buy a printing business was over ten years ago. I had a market in two-colour work and NCR that was fast disappearing and I figured the best way to move into the four-colour market was to buy a press with an operator and some sales in place.

The first company I tried to buy had good customers, great equipment and was run by two of the nicest people I ever met. They needed to retire and wanted their business to continue and their staff looked after, so we started negotiating via a broker. Sadly they were poorly advised on the hidden costs of selling and every time we got close to a deal they discovered a new expense and came back asking for more money.

This went on for twelve months before we finally had a deal and signed a heads of agreement. That was until they showed it to their suburban solicitor who refused to honour any of it and demanded we start negotiations afresh. I walked, having learnt that nice people hire bad lawyers.

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They eventually sold the business eighteen months later for two thirds our agreed price and the shop suffered two fires within eighteen months. The first fire was bad and the second one was terminal, killing the business and all the jobs, but I believe the insurance payout was quite nice for the new owner who has now also ‘retired’.

After my disappointment faded, I started looking again, to this day unsuccessfully. It’s become a bit of a hobby. If a business has been on the market in the last few years I’ve probably had a look at the books.  It’s been an education, both in how other print businesses are being run and how printers perceive the value of their companies.

For example I’ve found a surprising optimism about the value of equipment. I saw one company valuing their four year old press at $1.25m when a new one was $990,000 installed. This optimism often extends to the value put on goodwill – I have lost count of how many companies who are losing money ask for a million or two for their client list, or who on any objective measure are trading while insolvent and are still holding out for a multi-million dollar sale. It is sadly not uncommon to find a business listed as a great buy with a broker and then going into receivership a few months later.

It hasn’t all been negative though – I have come close to buying a couple of times. One place that was in administration I missed out on because I couldn’t get my bank on the phone on a Friday afternoon. That one I still dream about, although more in frustration at how badly it was run into the ground by the new owner. Another time I missed out on a great deal not because of money, but because the owner knew the other buyer slightly better. And I came closest with a company that was skirting the edge financially during negotiations but tipped over and became unsalvageable.

But I have to say that after having looked at twenty or more businesses, I reckon I have only seen two really great places on the market. Sadly they knew it and priced themselves out of reach for me and any sensible buyer. One was bought out by a mid-size company that later went broke. The other is still on the market more than a year after listing and I would wager anyone who paid the asking price would be gone within twelve months, good business or no.

However hope springs eternal and I keep on looking. South of Sydney harbour, have a post-2000 A2 or A1 multi-colour and maybe even have some mailing equipment? Breaking even or maybe not quite and want to get out? Most importantly, realistic about what your business is worth? Give me a call – I’ve been looking for you.

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