The Alexander Watson executive Merger & Acquisition forum in Chicago offered lots of interesting learnings for buyers and sellers of label companies. Here are some of them:
The positive trend since the bottom was reached in 2009 continues with more and more Mergers and Acquisitions happening in the packaging industry.
Multiples of EBITDA (Earnings before Interest Taxes Depreciation and Amortization) is a key measure for quick valuations in the packaging industry. See my blog from February for more information. For companies with critical mass, continued growth and a positive outlook EBITDA multiples of 6-6.5 for financial transactions and about 7 for strategic acquisitions are often being paid.
Our experience is that for label companies, who mostly are smaller and do not have the critical mass, typical multiples realized are 3-5, in exceptional cases 6.
My recommendation is to take advantage of the positive trend and start preparing for selling your label company. Even more so, if you experience profitable growth. Do not wait till you are forced to sell. We have many serious buyers looking to acquire label companies around the world……
The positive trend since the bottom was reached in 2009 continues with more and more Mergers and Acquisitions happening in the packaging industry.
Multiples of EBITDA (Earnings before Interest Taxes Depreciation and Amortization) is a key measure for quick valuations in the packaging industry. See my blog from February for more information. For companies with critical mass, continued growth and a positive outlook EBITDA multiples of 6-6.5 for financial transactions and about 7 for strategic acquisitions are often being paid.
Our experience is that for label companies, who mostly are smaller and do not have the critical mass, typical multiples realized are 3-5, in exceptional cases 6.
My recommendation is to take advantage of the positive trend and start preparing for selling your label company. Even more so, if you experience profitable growth. Do not wait till you are forced to sell. We have many serious buyers looking to acquire label companies around the world……
