Industry Consolidation -- A Quiet Buyer's Market

Unfortunately, the economic realities of 2008 and 2009 are forcing printers to liquidate where, in the past, debtor-in-possession financing allowed companies to reorganize under Chapter 11 bankruptcy protection. Thus, some very notable industry names have disappeared.

“Banks have companies on a very short leash so, in many cases, they cut off their line of credit and the business stops in its tracks,” he notes. “Those companies that do manage to have time to look for a buyer, most often have declining sales and mounting losses. The very few buyers with cash on hand to buy such companies are reluctant to buy something that cannot readily be fixed or improved. No one wants to spend money and not get a reasonable return on investment.