A quarter-century for Ascent Partners business sales

One of Australia’s premier business sales service providers to the printing industry has this week notched up its 25th Australian printing business sale to date, and the sixth for this year.

This year has been the busiest year on record for the quarter-century sales scoring Ascent Partners, but the company’s director, Richard Rasmussen, points out that the heavy selling has predominantly not been in response to turbulent economic factors.

“Many people will be surprised that most of these business sales are not forced sales,” says Rasmussen (pictured). “It’s usually an event or the realisation that they and their business have run out puff that brings them to us”.

Some of the trigger-points that might spark a business sale include a key staff member leaving, loss of a major client, the end of a lease, discontinuity of a family-run business. Events such as these tend force a decision that can often lead to the sale of a business. In Rasmussen’s experience, some printing businesses also reach the point of sale because of the simple reason that the owner has reached retirement age.

However, while some businesses in the market may struggling to meet profit margins, growth targets and maintenance costs, forcing their owners to consider selling, Rasmussen suggests that most businesses, in fact, have latent value and, under the right circumstances, can be financially successful.

“There are a lot of people out there who are successfully chasing extra sales and perhaps looking for a means to update plant and equipment,” says Rasmussen. “And there are those that are chasing good quality businesses, and market niches. It’s certainly not all doom and gloom.”

Rasmussen believes there will be a continued consolidation in the industry in the coming year, and this trend will enable many businesses in the industry to thrive.

“There’s no doubt consolidation will continue,” he says. “There is simply such a capacity and too many printing businesses to think otherwise. Those who choose to do nothing will suffer, especially if they don’t have a means to differentiate themselves in the market place”.

Ascent Partners will continue offering its appraisal, business sales and consultancy services to the industry into the new year. It will also keep the industry abreast of the latest market movements and major equipment installations through its monthly Market Watch bulletin at: www.ascentpartners.com.au