Consolidation--The Juggernaut Hits the Wall

Faucetta, who heads another privately held consolidator, sees a more controlled and specific consolidation than there was in 1998. "We need to evaluate the opportunities of the company, and ask ourselves: Does it really fit or is it just a revenue producer?"

Private consolidators face one significant, additional issue, Colville explains. "In most cases, the financial sponsor is also looking for an 'exit' option, whether it be going public or building a substantial company and selling it to a larger, usually public, company. The current low valuations for printing companies would seem to likely depress the appetite of financial sponsors to fuel the growth of a private consolidator."