My father would tell me, “Don’t bet on the wrong horse.” How does one know which is the right horse or not? In my work, I talk to many people who think they are ready to buy or sell a business. Through our discussions and sometimes our work together, they show me whether they have what it takes to be a top racehorse team.

Ninety percent won’t
I talk to a lot of owners who are wannabe thoroughbreds. Most of them lack the drive, talent, temperament and commitment. Some might call them “tire kickers.”  They are owners and potential investors who think and think and think about it, and never take action.

Across the spectrum of the graphic arts businesses, less than 10% will do the deep work required to become educated. The rest never get started. Ninety percent will miss out on opportunities and live with regret about what could have been.

The 90% are not the ones I want to talk to today. I want to talk to ambitious business people who crave an inside view of the world of deal flow.

Deal flow. It’s the new reality in today’s buy-sell environment. In fact, it’s so important I’ve rebranded this column around this concept. I’ve created a special arm of my business to generate and handle the level of deal flow I see coming. Deal flow goes both ways – buyers looking for potential thoroughbreds and sellers looking for best bets.

Deal flow is shaking up M&A
No question about it, deal flow is changing. It incorporates the masterful integration of all the elements required to execute a transaction. It’s also about the rhythm and timing required when we bring together the players for multiple deals. Flow involves a range of entities who must move swiftly, once the buyer’s window is open.

On the sell side, deal flow is an educated and well-timed approach to building value. A seller’s deal flow means leveraging the needs and desires of potential buyers to achieve optimum price and terms.

Deal flow is more than transactional. It incorporates every detail. In horse racing, it includes the health, muscle, shine and tone of the thoroughbred. Your business is more – much more – than the price it can command at the negotiating table.

Big deals and little deals
Deal flow exists to some extent when one owner sells to another. Timing, access to cash, market conditions, and competitive sectors that are in favor can all affect flow.

In 2021, however, we’ll see how deals flow on a much larger scale. Strong graphic arts companies with room for growth will be aggressively courted by private equity buyers who may or may not have experience in our industry. 

These PE groups have identified labels and flexible packaging as attractive. They will be buying multiple companies and building portfolios for their investors. These buyers require manageable risk, clear areas for optimization, and projected sales growth or trends in that direction. They want companies with excellent management and trained employees who can make the emotional and technological leap required by a fast-moving, well-funded entity.

But what about the pandemic?
In spite of these unprecedented times, my clients who have systematically followed my program and improved their business were able to close during the pandemic – even when banks were in a flurry and people were struggling to handle complex work from home.

My clients who persevered and followed my advice were able to make it happen and are now enjoying the fruits of their efforts. For those just getting started in the buy-sell process, the pandemic has its challenges to be sure, but time will pass whether you prepare or not. I’ll be addressing this and more in my forthcoming book.

If you’re a potential racehorse – that is, you own or run a good or great company – you have dreams and vision of your ideal future. I may be able to help you, but you won’t necessarily be a candidate for working with me personally. Not everyone can handle the LaManna energy and bluntness – nor the commitment and follow-through I demand. If you’re serious and willing to learn, you are a good fit.

M&A is changing
In the gig economy, today’s buyers and sellers want to do more themselves. They don’t want to operate blindly, turning everything over to stuffy experts who hoard information and keep clients on the sidelines. The Old Guard is not set up to handle the preferences of today’s buyers and sellers, who demand access, efficiency, speed, technology, truth and transparency. My approach is to keep the flywheel moving, get you into the game, coach you, keep the deals flowing, address obstacles and help you achieve your objectives.

Furthermore, we’re shining a light on the concept of the conventional broker fee. We’re cracking open the old compensation model like a piñata. Today’s deals require a flexible approach to compensation. Sellers need a confidential relationship that will set the stage for deals as they arise. In fact, if you’re a seller, you may find it exciting to be in the world of deal flow and parplay your proceeds into another “buy.”

We started this discussion talking about racehorses. Racehorses may be born with talent and pedigree, but they need care, training and the proper program to be winners. To adopt a thoroughbred mentality, you need education and wisdom. Above all, it takes ambition, stamina and flow to make it to the finish line.

Are you the right horse? Let’s find out.



Rock LaManna is The Deal Flow Guy. He helps qualified buyers and investors find businesses that are ready for acquisition or transition. On the sell side, he helps owners improve their businesses, increase value, and position strategically in anticipation of sale, exit or succession. Sign up for my newsletter at TheDealFlowGuy.com and start the process.