Consolidation--The Juggernaut Hits the Wall

Go for scale. "Think bigger rather than smaller. People ask why Big Flower, World Color and Merrill Corp. were sold for comparatively high valuation ratios. Although each had their individual rationales, they had one thing in common: scale. If you're thinking of doing an acquisition, do one slightly larger than you think you should, rather than slightly smaller. Larger companies often have deeper management and better systems that are not as vulnerable to the loss of a single customer or employee, or to softness in any one of the markets they serve."