As a consultant and advisor for business owners in the graphic arts industry, I am often asked what buyers look for in a label or flexible packaging company when evaluating businesses to acquire, merge with, or to form strategic partnerships.

My simple answer is that buyers prefer that the selling company has:

● A good reputation;
● Market demand for its products and services;
● Company finances that are organized and up to date;
● An experienced management team that will stay with the company after the sale;
● Strong assets (facility, equipment, real estate, etc.) that are sufficient for the next 3 years and/or to be a funded under a capitalization plan.

In addition, experienced buyers and investors want to be sure the seller is ready to let go of the business. The owner of the selling company may be psychologically dependent on the business for money, power, prestige, self worth, lifestyle, the daily relationships with co-workers, and many other benefits of owning a business. In these situations, the owner may not be aware of his or her emotional dependency on the business.

Other points:

1. Buyers often seek a business to acquire that is located nearby to reduce logistical complexity and maximize the workforce. They may prefer to acquire a company that offers complementary products or services rather than exactly the same. Often they prefer a company that is already up to speed on new technology or equipment, or that has a more diverse or experienced workforce than their own. 

2. Buyers are usually looking for situations where they can increase sales if they acquire the selling company. If you as a seller can bring a new category of customers to the table, those who are considering you as an acquisition will take you seriously.

3. Buyers will be researching the seller in depth. Buyers and their agents have access to many ways to research the companies they are interested in. Selling owners who strive to communicate honestly and present themselves with integrity will have the best chance of attracting qualified buyers.

4. Buyers are attracted to experienced sellers who have been through the process and understand how important it is to have clear communication, a desire to work through challenges and obstacles, a willingness to consider creative packages, and a win-win attitude. 

Red flags include:

● Unresolved complaints filed with the Better Business Bureau
● Job-related injuries
● Traffic infractions
● Safety violations and fines
● Employee complaints with the state labor board
● Bad publicity
● Complaints from customers or vendors
● COD status with vendors
● High turnover in positions such as bookkeeper, chief financial officer, or vice president of finance.

All of these red flags are easily researched by the buyer, so be sure to have your house in order before putting your company on the market. The advice of an expert who has years of experience in the graphic arts industry as well as in the buy-sell environment will be one of your strongest assets as a selling owner.

Today’s buyer is looking for a solid, proven company with potential to grow. Be sure to position yourself as the choice that rises above the rest.


Rock LaManna is President and CEO of LaManna Alliance. LaManna Alliance focuses on being the industry gold standard for professional advice and consulting services, helping business owners maximize the value of their businesses, optimize the efficiency of their operations, and plan and execute an exit strategy. Visit RockLaManna.com for more information.