Add the fact that most small operators are over 55 years old and have no plan or expectation of succession, and the case becomes clear and compelling. Merge.
In the survey Printing Brokerage in North America*, fewer than 500 mergers of small resellers took place in the period between 2000 to 2008. The effects were a 3.8-times average revenue, and a 20 percent profit, increase. During the same period, nearly 100 roll-ups among large-sized brokerages (average revenues of $6 million) resulted in a 10-times increase in combined sales, and an 8-times growth in profit.
- People:
- Vincent Mallardi
Vincent Mallardi, C.M.C., is a the chairman of the Printing Brokerage/Buyers Association International (PBBA) and is a Certified Management Consultant in the paper, printing and converting industries. He is also an adjunct professor in economics. Contact him via email at vince@pbba.org