Roll up potential for print shops

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December 21, 2024

by a searcher from Appalachian State University in Raleigh, NC, USA

Hi all. I’ve seen a lot of businesses in the marketing/print shop space listed, across geographies. Just curious if anyone has seen a roll up in this area? Open to opinions on the opportunities that are out there.

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Reply by a searcher
from Stanford University in 450 Jane Stanford Way, Stanford, CA 94305, USA
Mike makes a great point about the challenges of roll-ups in CapEx-intensive and highly customized industries like printing. To build on that, even if operational efficiencies are introduced, the long-term viability of a roll-up in this space likely depends on securing recurring revenue streams—such as subscription-based print services or managed marketing solutions—to offset the variability and one-off nature of typical print orders.
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Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
A roll-up must have a value-add thesis statement. A roll-up based on financial engineering will fail. Businesses that are a) CapX intensive, b) subject to technology changes, c) each order is unique, etc are not good for roll-up.
Printing industry has been under pressure for many decades.
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