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How do I sell my print business?
August 30, 2007

Question: My printing business feels like it’s in limbo. Should I bite the bullet and sell?

— An unidentified reader

Answered by Darryl Buchanan darrylb@allegranetwork.com, VP development for Allegra Network www2.allegranetwork.com: The majority of business owners know the warning signs indicating they need to sell their operation and move on. These include an immense work overload, too many unforeseen challenges, an overwhelming increase of responsibilities and a sizeable decrease in sales. While all of these are reasons enough to update that résumé, owners may want to take a good look at their company before making that vast decision to smack a “For Sale” sign on their front window.

Is Plastic Surgery Required?

The truth of the matter may simply be the business is in dyer need of a facelift—whether it's enhancing the appearance of the facility, getting financials in order or simply ensuring equipment is in good working condition with up-to-date maintenance records. Before revamping a business in hopes to sell it, there are three things that potential sellers need to keep in mind: 1) valuable legwork is necessary to get started; 2) the seller must prepare him or herself mentally before beginning the process, and 3) marketing strategies are key to selling success.

Valuable Legwork to Get Started

When it comes to getting started, business owners should prepare their last three years of financial statements, including balance sheets. Also, it is very important to have a list of updated equipment and all leases, including real estate contracts.

It May Look Like a Good Deal ... To You!

Commercial and quick printers also should know the value of their business. Without knowing the value, determining an appropriate asking price is difficult. Begin a relationship with suitable legal and financial experts who have a proper track record of business transfers.

Becoming Mentally Prepared

Sellers need to be fully committed to selling their business. Having a realistic timeframe of how long it will actually take also is a must. A good case scenario may easily take six to 18 months; but it can realistically take three to five years to sell a business, depending on the state of the industry, market and pool of prospective buyers. Commercial and quick print sellers should never assume that multiple buyers will be interested in buying their businesses. Too many make the mistake of waiting for a better offer that may never come. Other common pitfalls include overlooking the option of selling the business to an employee, expecting to be cashed-out and forgetting that a main purpose of purchasing their business was to ultimately sell it.

Promote Thyself Proactively

One of the most widespread mistakes commercial and quick print sellers make is not promoting the business sufficiently. Whether through networking and maintaining relationships with past prospects, putting together marketing collateral promoting the strengths of the business, or presenting a clean and professional business with curb appeal, most printers are reactive and often “miss the boat” when they may have had a prospective buyer right in front of them without even realizing it.

More importantly, sellers need to understand who their most important customers are and continue to service them well to maintain steady sales. Potential buyers want a winning business; one of the biggest mistakes sellers can make is to 'check-out' of the business before closing on the sale.

Posted by Mark Vruno on August 30, 2007 | Comments (0)