You want to sell your printing company? Then it's good to know what the takeover market in the field of printing companies looks like. Printers with distinctive capabilities seem to be the survivors in a declining market. These printing companies can strengthen their position in the coming years through acquisitions.
The challenges in the printing market also affect the number of mergers and acquisitions. Although the sale of online subscriptions and the offering of online services has put the graphic arts media on growth, it remains a difficult time for printing companies. In more than a decade, there are about a quarter fewer printing companies in our country; partly because of disappointing operating results (and bankruptcies) and partly because of acquisitions.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In media, advertising and communciations, which includes a printing company, an indicative EBITDA multiple range of 3.3 to 4.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
Do the calculation
Want to buy a business or sell a business in the Media, Advertising & Communications sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in Media, Advertising & Communications. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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The Dutch business landscape has changed a lot in ten years, partly due to digitalization. Figures from the Central Bureau of Statistics show that there are more than 35 percent fewer printing companies than 15 years ago.
In figures, the number of graphics businesses in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes in the coming years, but they also offer the printing industry many growth and acquisition opportunities:
Consumers and businesses are consuming traditional print products digitally more often. As a result, there is an overcapacity of printing presses, according to ABN Amro. That overcapacity is hard to get out of the market, but at the same time the digitization of society is continuing. The industry managed to achieve handsome revenue growth abroad in recent years, but exports account for only 10 percent of the industry's total revenue, so on balance revenue fell sharply.
There is overcapacity in the industry. In order to keep up production to some extent, printing companies had to offer very low prices. Especially mass printing had to suffer. Pressure on the bottom line and business structure (owned printing presses) made it a challenge to unlock new revenue models. The situation led to many cost cuts, which led to a sharp decline in the number of jobs in the industry.
Volumes in the industry are shrinking, which has led to overcapacity and increasing competition. This competition challenges printing companies to automate the production process; they need to be able to process orders efficiently at low prices. Combining orders allows for cheaper and faster production.
Customers are looking for a good communication mix of paper and online. To advise on this, printing companies are offering new services such as design and consultancy; often in collaboration with creative businesses or freelancers. For specialized printers, there are opportunities in new techniques and high-tech printing, such as 3D printing and printed electronics.
For printing companies, it is interesting to expand services. Think about providing online inventory management or serving a niche, such as packaging printing.
