CmykCards Blog

Times have changed for those printers who wish to sell their business. Expectations do not often meet with reality, and it’s sobering and disappointing experience for many.

There has been a fair bit of trade press recently promoting the dos and don’ts, rights, wrongs and how tos of buying and selling printing businesses. Seeing the amount of action in this area and the knock0on effects of financing a business acquisition, it is work looking at some lateral or real situations rather than follow the academic or times earnings philosophies.

The fact of the matter is that the boom days in the printing industry extended through the 1980s, when the baby boomer generation found it reasonably easy to purchase equipment and get started in their own business. It goes without saying this generation is now in its 50s to 60s, and admit it or not, desperately seeking to start or implement an exit strategy to embark upon the less stressful vocation of retirement.

In additional to the aforementioned group, there are also numerous businesses that are simply not trading profitably, from which the owners wish to sell or merge in order to exist or retire while they still have the shirt on their back.

Some typical scenarios include the fellow slowly going broke who sold to a co-existent inhibitor of a niche market. He got out for the market value of his equipment.

There are enthusiastic young companies who are actively seeking to build their own sales and profits through the going concern acquisition of another business. Usually retaining key staff and rationalising the plant of either or both businesses, thus assisting to finance the acquisition.

The plain truth is that equipment values decline and pricing pressures within the industry continue to diminish any discounted cash flow method. The majority of business cards company for sale have aging equipment, even if the youngest press is only five years old today.

The outdoor media industry has recorded strong first quarter growth for 2008, with net media revenue increasing by 13 per cent on the same period last year – up from $95.2m to $108m, according to the Outdoor Media Association (OMA).

The results follow an annual increase of 16.1 per cent in 2007 compared to 2006, the fifth consecutive year of recorded growth by the industry.

This most recent result continues the strong trend of advertisers to incorporate a greater share of outdoor media into their marketing campaigns.

All sectors recorded good increases throughout the quarter, with posters experiencing the greatest growth at 27 per cent.

Revenue rises across the industry formats were as follows:

• Street furniture, including bus /trams stops, retail and phone booths up 9.4 per cent, from $37.9m to $41.5m.

• Large format, including billboards, super sites and spectaculars up 14.5 per cent, from $32.1m to $36.8m.

• Transit, including advertising on buses and trams, taxis and railways up 15 per cent, from $19m to $21.9m.

• Posters, including 6 and 24 sheets, up 27 per cent, from $6.1m to $7.7m.

According to Helen Willoughby, Chief Executive of the OMA, organic growth across the industry will continue throughout 2008.

Willoughby says, “The development of new sites, coupled with the planned launch of the industry’s new audience measurement system later this year, will continue to drive the industry forward.”

MGI Digital Graphic Technology, the multi-substrate (paper and plastic) digital press and finishing solutions manufacturer, announced that it will launch its latest development for digital printing, the Meteor DP60 Colour Digital Press.

Distributed in Australia by The Digital Impressions Group, the Meteor DP60 Pro is a multi-substrate digital press and is the flagship model in the MGI range. Designed for high volume printing, the DP60 Pro has the capability of producing up to 3,900 A4 sheets, 1,600 330mm x 487mm sheets, and up to 32,000 ISO CR-80 PVC plastic cards hourly. With four colours and full variable data, it can accommodate sizes up to 330mm x 487mm with a maximum print area of 320 x 480mm.

Warren Davey, managing director of DIG says, “It is the most versatile digital press in the industry. The Meteor DP60 Pro can print on a wide range of paper and plastic substrates. Compatible paper types include matt, floss and satin ranging in weights between 70 and 350gsm as well as envelopes, textured papers and self adhesive labels”.

The plastic substrates the Meteor DP60 can print on include PVC, polycarbonate, polyester, Teslin, vinyl, and PET, ranging in thickness between 100 and 400 microns. All substrates can be printed in high quality resolutions of up to 2,400dpi.