23 February 2023

Exit strategies and options for change are still viable despite challenging print sector climate

Running a print business is not always plain sailing and in the current climate particularly, navigating challenging times has almost become part and parcel of day-to-day operations.   

Sometimes these challenges are more aligned to the sector itself, such as changing consumer preferences, reduced customer demand, or disruptive technology changing buying behaviour, while others are related to unavoidable macroenvironmental factors such as political decisions, changing legislation, and the wider economic landscape as a whole. 

Still potential succession in a recession 

Regardless of the reasons behind the problems being faced, it is important to remember that a business experiencing financial challenges does not necessarily mean it is a bad business. Granted, it can sometimes feel that way if management is spending most of its time firefighting against rising inflation, soaring interest rates, increased energy costs and general cost of living crisis… but it’s important to recognise that these pressures are fairly universal and in most cases periods of financial or operational distress can be successfully managed and ultimately overcome, with a company emerging on the other side stronger and more resilient in the face of future challenges. 

And what we’re seeing is that if this cannot be managed under existing leadership, there are ample opportunities for a new ownership model to reenergise the business and steer it away from troubled waters.  

The UK is showing recessionary patterns and there is a preconception  that a distressed print business holds little attraction – but this is far from the truth. As things stand, the M&A market continues to go from strength to strength and if anything, the difficulty is actually making struggling businesses aware of their sale potential.  

Trade buyers are actively acquisitive as they look to shift their business models and create scale, whilst private capital is looking for the yields that smaller businesses can provide. 

We’re also seeing business valuations holding firm in a post-lockdown world so for those print companies struggling with rising costs across the board and seeing margins squeezed even more tightly, our advice is very much along the lines of ‘in crisis, there is opportunity’. History has shown us that it is businesses that quickly assess their options in a changing climate which thrive the most when wider macroenvironmental challenges present themselves. 

Where to turn for help

In confidence discuss with your BPIF Regional Team 

Marcus Clifford, South East and Eastern - 0774 381 8806

Darren Shepherd, North East and North West - 07714 134 655

Dawn Reid, Midlands and South West - 07801 981 325 

Begbies Traynor Group  work with a large number of funders, private equity groups, and acquisitive corporates which means we’re able to provide maximum options if you’re considering restructuring or looking for new investment. Our team specialises in business turnaround, valuations, and business sales – so regardless of the position your business is in, we can help you find the best route forward.

Graeme Lipman – Director at Begbies Traynor Group plc  07479 470 477