Consolidation--Moguls of M&A

For Mail-Well, all potential acquisitions have to meet the additional hurdle of being accretive to our earnings per share in the first year.

In an environment of slightly tougher capital markets and increasing pressure on margins, it is our strong view that multiples have declined somewhat and are likely to continue under some downward pressure. Moreover, we tend not to pay for operating synergies or cost savings that might be realized after the acquisition. It is our view that any valuation increase resulting from items such as these should inure to the benefit of our shareholders, as they are the ones taking the risk that such savings, etc., will, in fact, be realized.