{"id":35988,"date":"2019-08-29T11:40:34","date_gmt":"2019-08-29T18:40:34","guid":{"rendered":"https:\/\/www.enxmag.com\/twii\/?p=35988"},"modified":"2019-08-29T11:40:37","modified_gmt":"2019-08-29T18:40:37","slug":"from-taxes-to-integration-concerns-some-random-bits-and-pieces-on-ma","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/feature-articles\/2019\/08\/from-taxes-to-integration-concerns-some-random-bits-and-pieces-on-ma\/","title":{"rendered":"From Taxes to Integration Concerns, Some Random Bits and Pieces on M&A"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

While we could discuss the ins and outs of the merger and acquisition theater on a weekly basis, alas, this week marks our final look at the subject for now, at least in terms of our state of the industry focus. You can check out the news section of our website, along with The Week In Imaging, to keep abreast of industry transactions involving dealers, manufacturers, suppliers and<\/g> even consultants.<\/p>\n\n\n\n

We\u2019ll close out the month of August with some final thoughts\nfrom our panel of M&A heavyweights.<\/p>\n\n\n\n

\"\"
Dan Ruhl, Oval Partners<\/figcaption><\/figure><\/div>\n\n\n\n

Dan Ruhl, a principal with Oval Partners\u2014the financial\ncatalyst behind Flex Technology Group\u2014points out that one of the biggest\ndevelopments in recent years is the wealth of alternatives for sellers to\nconsider, as opposed to three to five years ago.<\/p>\n\n\n\n

\u201cWhen you\u2019re moving forward with the transaction in this\ntype of business environment, your ability to accomplish what you\u2019re hoping to\naccomplish for yourself, your family, your management team and for your\ncompany, is much better today,\u201d he said. <\/p>\n\n\n\n

\"\"
Chip Crunk, RJ Young<\/figcaption><\/figure><\/div>\n\n\n\n

RJ Young has completed six acquisitions in the past three years, and President\/CEO Chip Crunk notes the dealer is in the process of closing another deal shortly. Their integration woes are largely a thing of the past,<\/g> since the dealer now has an abundance of experience in assimilating companies. But are there consequences to becoming too big, too fast?<\/p>\n\n\n\n

Resources play a considerable role in determining whether a\ncompany can accommodate multiple deals in a condensed timeframe, according to\nCrunk. \u201cThe only real danger in becoming too big too quickly is if you don\u2019t\nhave enough resources or the available talent to take on additional\nopportunities. If you\u2019re missing one of those, then it\u2019s going to be a\nchallenge.\u201d<\/p>\n\n\n\n

Future Strategy<\/strong><\/p>\n\n\n\n

So what will the industry look like in two or three decades?\nWill it bear any resemblance to the dealer players, their technologies and\ncustomer bases? If the reins of a family business are handed down to a\n30-year-old executive, will he\/she find a path to profit that leads to their\nretirement?<\/p>\n\n\n\n

One thing\u2019s for sure. Any forward-looking plans need to be\nbased on managed services.<\/p>\n\n\n\n

\"\"
Jeff Gau, Marco<\/figcaption><\/figure><\/div>\n\n\n\n

\u201cIs the copier industry, by itself, sustainable enough for\nthe next three decades?\u201d wondered Jeff Gau, CEO of Marco. \u201cI would question\nthat, which is why we diversified. Almost half of our business is IT services.\nWe attend different conferences\u2014HP, Tech Data and Ingram Micro\u2014and that\u2019s what\nthey\u2019re talking about, MPS and managed IT. That\u2019s what copier people are\ntalking about, and it\u2019s the same with the VARs, because they\u2019re looking for\nrecurring revenue, too. We\u2019re going to different industry meetings, and they\u2019re\ntalking about the same thing.\u201d<\/p>\n\n\n\n

Political Football<\/strong><\/p>\n\n\n\n

With the next presidential election just 14 months away,\nthere\u2019s always talk of the ramifications that a change in the oval office might\nbring. Jim Sheffield, president and CEO of UBEO Business Services, notes most\nbusiness owners are concerned about the tax landscape, and the impact a change\nmight have on capital gains taxes.  <\/p>\n\n\n\n

\"\"
Jim Sheffield, UBEO<\/figcaption><\/figure><\/div>\n\n\n\n

\u201cI don\u2019t worry too much about the economy; we\u2019ve been\nthrough a lot of tough times in this industry,\u201d he said. \u201cBecause it is the\ncenter of free enterprise, you have to have it geared to do business. It\u2019s\nrelatively recession-resistant, as much as any business can be. When you\u2019re\ndoing something like this and thinking about liquidating your largest asset,\ntaxes are something sellers really need to consider.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

While we could discuss the ins and outs of the merger and acquisition theater on a weekly basis, alas, this week marks our final look at the subject for now, at least in terms of our state of the industry focus. You can check out the news section of our website, along with The Week In Imaging, to keep abreast of industry transactions involving dealers, manufacturers, suppliers and even consultants. We\u2019ll close out the month of August with some final thoughts from our panel of M&A heavyweights. Dan Ruhl, a principal with Oval Partners\u2014the financial catalyst behind Flex Technology Group\u2014points out that one of the biggest developments in recent years is the wealth of alternatives for sellers to consider, as opposed to three to five years ago. \u201cWhen you\u2019re moving forward with the transaction in this type of business environment, your ability to accomplish what you\u2019re hoping to accomplish for yourself, your family, your management team and for your company, is much better today,\u201d he said. RJ Young has completed six acquisitions in the past three years, and President\/CEO Chip Crunk notes the dealer is in the process of closing another deal shortly. Their integration woes are largely a thing of the past, since the dealer now has an abundance of experience in assimilating companies. But are there consequences to becoming too big, too fast? Resources play a considerable role in determining whether a company can accommodate multiple deals in a condensed timeframe, according to Crunk. \u201cThe only real danger in becoming too big too quickly is if you don\u2019t have enough resources or the available talent to take on additional opportunities. If you\u2019re missing one of those, then it\u2019s going to be a challenge.\u201d Future Strategy So what will the industry look like in two or three decades? Will it bear any resemblance to the dealer players, their technologies and customer bases? If the reins of a family business are handed down to a 30-year-old executive, will he\/she find a path to profit that leads to their retirement? One thing\u2019s for sure. Any forward-looking plans need to be based on managed services. \u201cIs the copier industry, by itself, sustainable enough for the next three decades?\u201d wondered Jeff Gau, CEO of Marco. \u201cI would question that, which is why we diversified. Almost half of our business is IT services. We attend different conferences\u2014HP, Tech Data and Ingram Micro\u2014and that\u2019s what they\u2019re talking about, MPS and managed IT. That\u2019s what copier people are talking about, and it\u2019s the same with the VARs, because they\u2019re looking for recurring revenue, too. We\u2019re going to different industry meetings, and they\u2019re talking about the same thing.\u201d Political Football With the next presidential election just 14 months away, there\u2019s always talk of the ramifications that a change in the oval office might bring. Jim Sheffield, president and CEO of UBEO Business Services, notes most business owners are concerned about the tax landscape, and the impact a change might have on capital gains taxes.  \u201cI don\u2019t worry too much about the economy; we\u2019ve been through a lot of tough times in this industry,\u201d he said. \u201cBecause it is the center of free enterprise, you have to have it geared to do business. It\u2019s relatively recession-resistant, as much as any business can be. When you\u2019re doing something like this and thinking about liquidating your largest asset, taxes are something sellers really need to consider.\u201d<\/p>\n","protected":false},"author":166,"featured_media":35989,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1650,82,87,1638],"tags":[3487,545,501,3510],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/35988"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=35988"}],"version-history":[{"count":1,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/35988\/revisions"}],"predecessor-version":[{"id":35990,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/35988\/revisions\/35990"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media\/35989"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=35988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=35988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=35988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}