The Situation: A $7 million printing company had seen its market erode over several years. The owner was close to retirement age, and was worried about his son’s future in the business. The owner didn’t have the stomach to make investments in new equipment, or to try rebuilding his salesforce. After three years of increasing losses, it seemed clear that the company would have difficulty maintaining its independence.

Our Approach: Despite the losses, the company still had a desirable book of business that we believed would be valuable to other printers in the area. The key was to have prospective buyers look at how our client’s sales would fit within their companies, rather than focusing on our client’s financial results as a stand-alone entity.

We identified two potential buyers that made a particularly good fit with our client’s customers and the kind of work they did. We initiated conversations, and one candidate showed an immediate interest. They saw how well our client’s sales would fit into their present capabilities and customer mix, with no major account conflicts. (Since the buyer and seller were operating in the same market, we took special care to ensure confidentiality.)

The Results: After extended negotiations, we reached agreement on a really favorable deal: The company was sold for an attractive price, with extra incentives for the owner if sales remained at a reasonable level. Six months after the deal closed, the owner retired. His son continued to work as a salesperson, with a three-year employment contract. Within a year, the son’s future seemed very bright. With a broader range of services to offer his clients and lots more production capacity, his sales had quickly risen from $800,000 to more than $1.25 million.