Let's Make a Deal
M&A Company: DocuSource by Safeguard, Portland
What do you do when your company has a healthy balance sheet, but your two business partners are nearing retirement age? That was the situation for Jeff Scott, former CEO of DocuSource by Safeguard.
Established in 1969, DocuSource by Safeguard is a full service print and brand management provider, with locations in Portland, Ore., Boise, Idaho and Seattle. When reviewing transitional options, Scott wanted to find a large brand that could help DocuSource continue to serve its customers-including many large regional accounts-to the right degree. He and his partners also needed a company that could invest capital into their business and associates as they were setting up exit plans, Scott said.
"Obviously, our staff had invested a lot of time and energy into the success of our organization and we wanted to take care of them," Scott mentioned. "Additionally, we wanted to find a deal that contractually allowed me and my two partners to exit at different times because of our varying ages. While the two partners have already left, I have stayed on, as I'm not quite ready to retire."
Safeguard, a fully diversified business solutions enterprise owned by Deluxe Corporation, was the perfect fit. "Deluxe and Safeguard's stability is impressive-they have successful pasts and are ingrained in the industry," Scott pointed out. "An important piece of the puzzle was that the acquisition was a cash transaction, in addition to the deal structure that would allow each partner to exit the business at different times."
Scott, who continues to provide consulting services to Safeguard, is happy with his decision. "Safeguard brought a significant infusion of capital to improve our offices, warehouse, technology and our desktops," Scott said. "The amount that they invested to upgrade, update and improve our facilities and technology was a huge benefit-something the three of us owners would not have been able to do at that magnitude."