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General Print Supplies, Services for Printers
News Release from: Plimsoll Publishing | Subject: UK printing market analysis report
Edited by the Printingtalk Editorial
Team on 14 August 2007
Private Print Firms' Values Grow As
Buyers Move In
Over half of the the UK's privately-owned printing companies are seeing their values increasing faster than those of their corporate competitors as they potentially attract buyers.
That is according to a new report by business analyst Plimsoll Publishing Its latest research shows that 969 of the UK's top 1,498 printers companies remain in private hands, and their exclusivity, niche products and range of services are adding to their appeal to companies seeking acquisitions
This article was originally published on Printingtalk on 23 Feb 2007 at 8.00am (UK)
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According to Plimsoll's senior analyst, David Pattison: "The increasing age of owners and principals at some of these companies is causing them to consider their choices.
Whilst many family firms have succession plans in place, an offer for the company at the crucial moment is often listened to sympathetically, as the new generations of those familes in the firms review their options." Plimsoll believes that the significant lure for corporate and private raiders is the hidden potential of family-run companies.
Current owners typically strip out 80 per cent of profits as fees and to the potential buyer that seeks value that provides a platform on which to further build a business.
But, warned Plimsoll, for those who are not averse to the idea of a takeover, their past activities may backfire on them.
David Pattison explained: "The problem for private companies wishing to sell is that many of them haven't done themselves any favours in the past in terms of promoting the value of the business.
With the help of professional advisers, they have become very adept at hiding their worth.
When they go to sell, there simply isn't the evidence to support a high asking price.
Potential buyers will always make a low offer in this situation because they simply won't believe a company's own unsupported figures." The changing atmosphere in the industry has an upside and downside for staff and for the wider economy, he added.
On one hand, if families increasingly withdraw, the sector is in danger of losing the steady corporate stewardship and entrepreneurial drive that has been a cornerstone of the economy for the last 60 years.
Conversely, professional owners, despite bringing more debt and risk, may offer greater focus and drive, benefiting the company and its employees in the longer term.
The latest Plimsoll analysis in to the UK printing market is said to give a detailed value and performance rating for each of the 1,498 companies in the sector.
It is aimed at those looking at their options in the market and anyone thinking of buying or selling a company.
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