• Login
    • Join
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Exclusives
    • Labels & Packaging
    • Markets
    • Technology
    • Equipment
    • Supplies
    • Buyers' Guide
    • Events
    • Jobs
    • More
  • Magazine
  • News
  • Exclusives
  • Labels & Packaging
  • Markets
  • Technology
  • Equipment
  • Supplies
  • Buyers' Guide
  • Events
  • Jobs
  • Current / Back Issues
    Features
    Editorial
    Columns
    Digital Edition
    eNewsletter Archive
    Our Team
    Subscribe Now
    Advertise Now
    Top Features
    Label Insights: Kocher + Beck highlights GapMaster enhancements

    Die Technology

    Ink Innovation

    E-Commerce Labels

    Contingency Planning
    Breaking News
    Converter News
    European Label News
    Industry News
    Industry People
    M&A News
    New Products
    Expert's Opinion
    Live From Shows
    Top News
    FINAT to hold online networking, educational forum

    Maxcess updates user interface for Fife guiding Sensor

    Mark Andy organizes international webinar for students

    Enprom helps converter respond to flexible packaging needs

    anytron assists medical device company with labeling
    Blog
    Video Bites
    Beauty & Personal Care Labels
    Beer Labels
    Beverage Labels
    Flexible Packaging
    Folding Carton
    Food Labels
    Glue-Applied
    In-Mold
    Industrial Labels
    Medical Labels
    Pharmaceutical Labels
    Pressure Sensitive
    Prime Labels
    Promotional Labels
    Security Labels
    Shrink
    Smart Labels
    Specialty Labels
    Spirits Labels
    Wine Labels

    Enprom helps converter respond to flexible packaging needs

    anytron assists medical device company with labeling

    Deep dive into the packaging supply chain

    Fortis Solutions Group acquires Total Label USA

    Schreiner MediPharm develops NFC-Label for Ypsomed’s UnoPen injector
    Africa
    Asia
    Australia
    China
    Europe
    India
    Latin America
    Middle East
    North America

    Mark Andy organizes international webinar for students

    Enprom helps converter respond to flexible packaging needs

    APR supports EMP with range of flexo needs

    Kocher + Beck appoints new regional sales manager

    Dantex elevates Joseph Sanchez to digital business development manager
    Flexography
    Digital Printing
    Prepress
    Finishing
    Sustainability

    Mark Andy organizes international webinar for students

    UPM Raflatac achieves multi-site health and safety certification

    Mark Andy launches monochrome digital print bar

    Label Traxx launches Siteline online artwork approvals system

    APR supports EMP with range of flexo needs
    Digital Printers & Presses
    Flexo Presses
    Label Converting Equipment
    Label Finishing Equipment
    Prepress Equipment

    Maxcess updates user interface for Fife guiding Sensor

    Mark Andy organizes international webinar for students

    Mark Andy launches monochrome digital print bar

    Label Traxx launches Siteline online artwork approvals system

    Omet announces Spare Parts Department
    Dies And Tooling
    Flexo Supplies
    Ink & Coatings
    Prepress Supplies
    Pressrooom Supplies
    Substrates

    Dantex debuts new capabilities with white ink opacity

    VideoBite: Sun Chemical drives label and packaging innovation

    Siegwerk partners with Kotkamills

    Lecta joins CELAB

    Meech supports local charities at seven locations
    All Companies
    Categories
    Company Profiles
    Label Converters
    Trade Associations
    Add New Company
    International Buyers Guide Companies
    KTI

    QC Electronics, Inc.

    Flexo Label Advantage Group LLC (FLAG)

    Corotec Corporation

    HP, Inc.
    Industry Events
    Webinars
    Live from Show Events
    • Magazine
      • Current & Past Issues
      • Features
      • Editorial
      • Columns
      • Digital Edition
      • eNewsletter Archive
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Buyers' Guide
      • All Companies
      • Categories
      • Company Profiles
      • Label Converters
      • Trade Associations
      • Add Your Company
    • Labels & Packaging
      • Beauty & Personal Care Labels
      • Beer Labels
      • Beverage Labels
      • Flexible Packaging
      • Folding Carton
      • Food Labels
      • Glue-Applied
      • In-Mold
      • Industrial Labels
      • Medical Labels
      • Pharmaceuticals Labels
      • Pressure Sensitive
      • Prime Labels
      • Promotional Labels
      • Security Labels
      • Shrink
      • Smart Labels
      • Speciality Labels
      • Spirits Labels
      • Wine Tables
    • Markets
      • Africa
      • Asia
      • Australia
      • China
      • Europe
      • India
      • Latin America
      • Middle East
      • North America
    • Equipment
      • Digital Printers & Presses
      • Flexo Presses
      • Label Converting Equipment
      • Label Fishing Equipment
    • Supplies
      • Dies And Tooling
      • Flexo Supplies
      • Ink & Coatings
      • Prepress Supplies
      • Pressrooom Supplies
      • Substrates
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Videos
    • Podcasts
    • Infographics
    • Blog
    • Whitepapers
    • Events
      • Industry Events
      • Live from Show Events
      • Webinars
    • Jobs
    • Resources
      • Supplier Gallery
      • Literature Showcase
      • Homepage Showcase
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    The Bottom Line

    Handle the Truth: How to keep a printing business M&A out of court

    ...

    Related CONTENT
    • Trinity Graphic USA
    • Contract Converting LLC
    • Tariffs: Impact on industry
    • Viva Italia!
    • Five mistakes owners make when it's time to sell the business
    Rock LaManna04.09.18
    One of my favorite movies of all time is “A Few Good Men,” and in particular, the iconic lines delivered by Jack Nicholson’s character, Colonel Jessup.
    “You can’t handle the truth!” he barked while on the witness stand.

    The colonel was referring to the grim reality of war and combat, and the fact that the information he had was too sensitive for Tom Cruise’s character. The truth, however, ultimately proved to be the downfall for Colonel Jessup, and it took a dramatic courtroom scene to reveal it.

    The truth will come out, whether you’re talking about a military courtroom or a printing company merger and acquisition. Over the course of time, the truth reveals itself, and the guilty party will suffer the consequences.

    The amount of time it may take for the truth to be revealed, however, is another story.  And the damage that can be inflicted on all parties involved can be embarrassing at the least, and disastrous at worse.  Take the case of Tervis Tumblers and the printing company Trinity Graphic USA as an example.

    Tervis vs. Trinity: A Lose-Lose Situation
    A January 31, 2018 article that appeared in the Tampa Business Journal profiled the lawsuit filed by Trinity Graphic USA against Tervis Tumblers.  The lawsuit, filed in federal court, alleges that Tervis caused more than $25 million in damages by violating a non-disclosure agreement.

    The case involves a proprietary printing technique used by Trinity Graphic USA.  The technique in question allowed for more effective printing on transparent wraps which would enhance Tervis’s signature tumbler glasses.

    As you can imagine, a fair amount of damage has been inflicted on both sides.  Any time news of this nature breaks, there is very seldom a clear-cut winner or loser.

    Reputations are called into question, and in the unforgiving court of public opinion, there will always be a cloud of uncertainty and doubt attached to both companies, right or wrong.

    The issue here is that “the truth” has been called into question via a lawsuit.  “The truth” will be put to the test, and we will soon see who had taken the proper steps to protect themselves in the event that this kind of thing happens.

    And that’s my point: How you proactively handle “the truth” in your own personal exit through a M&A may be the only thing that can provide protection in the event that wheels come off the wagon.

    It’s More Than Integrity – It’s About Preparation
    My father was an innovator and entrepreneur in the printing and converting industry for years.  It was back in the day when your handshake and your word counted. At least it counted a lot more than it does today.

    When you’re either buying a company or selling your own company, you need to take important legal steps to ensure you’re protected in an event like the Tervis-Trinity lawsuit. I’ve seen lawsuits take down companies and careers. So here’s what you need to do to ensure you’re not at risk:

    Get it in writing as soon as possible
    The world would be such a wonderful place if all it took were a handshake and a person’s word.  Not any more. Get your business agreements formally authorized before any work begins.  In the early days of my consultancy business, I took people at their word too often, assuming we’d get a contract in place at some point. That was a hard lesson to learn. Get it in writing early so you don’t suffer the consequences.

    Exchange non-disclosure, non-circumvention agreements
    Non-disclosure and non-circumvention agreements will weed out a majority of the potential bad apples right away.  When you get contracts formally authorized in place in exchange for safeguarding proprietary information, it adds a whole new level of protection and legal enforcement for your own company.

    Have these been violated in the past? Sure. Will they be violated in the future? Absolutely. But this is but one of a series of steps that are designed to keep you out of the courtroom, so view it as another part of the protection strategy.

    Background checks are a must
    For a smaller company, the prospect of working with a larger enterprise can blind you. No matter how big a contract is, you will lose money on it if it winds up in litigation. So you need to do extensive due diligence on the company you’re going to work with. 

    Some tips include:
    • Check a company’s filings with the SEC (if they’re public)
    • See if their filings with the Secretary of State are up-to-date (or whatever institution oversees commerce in your respective state)
    • Conduct searches on state and federal websites to assess litigation history
    • Check references
    It takes time and money to do a background check. Do it for employees, do it for potential clients, and most importantly, do it for a company you’re buying or merging with!

    Build your own legal team, and don’t skimp
    You’re going to need a legal team behind you – there’s just no way around it. Use the same due diligence process on prospective legal assistance that you used with the potential partner. Your legal sourcing is going to be an important part of your organization. 

    You want a specialist with a proven track record and integrity, and they must understand the owner business. Interview at least two to three potential lawyers.  And most importantly, don’t go cheap on this. 

    You don’t necessarily need to break the bank with a quality attorney, but hire someone who is highly reputable and well-established. Your legal team must know the law, while you need to know and trust the people you hire for the job.

    Keep Honest People Honest
    There is a story about a man who bought a piece of property in a rural town. He was told when he moved to the town that everyone was friendly and trustworthy. That’s why he was surprised when he noticed his neighbor installing a new lock on an outdoor storage shed.

    “I thought you could trust everyone around here?” he asked.

    The neighbor smiled. “Just keeping honest people honest.”

    That’s ultimately what it’s all about. Protecting the truth in your exit M&A is about establishing parameters for the handling of sensitive information. It’s ensuring that both parties are crystal-clear on what is right, and what is wrong. It’s hopefully to avoid a case like Tervis vs. Trinity. Ultimately, I would recommend you follow my father Carlo’s lead. He exited successfully from his company many years ago, adhering to his beliefs and values. He told me, “Just do the right thing, always.”

    Let that be your guide and you will not only handle the truth,  you’ll live it.


    Rock LaManna, President and CEO of LaManna Alliance, helps printing owners and CEOs use their company financials to prioritize and choose the proper strategic path. Rock can be reached by email at rock@rocklamanna.com.
    Related Searches
    • m&a
    • merger
    • people
    • rock lamanna
    Suggested For You
    Trinity Graphic USA Trinity Graphic USA
    Contract Converting LLC Contract Converting LLC
    Tariffs: Impact on industry Tariffs: Impact on industry
    Viva Italia! Viva Italia!
    Five mistakes owners make when it Five mistakes owners make when it's time to sell the business
    A look at Gallus Labelfire 340 early adopter Info Label A look at Gallus Labelfire 340 early adopter Info Label
    Roll-to-roll solar energy Roll-to-roll solar energy
    Shifting retail landscape brings challenges, opportunities Shifting retail landscape brings challenges, opportunities
    Smart labeling poised to take over retail space Smart labeling poised to take over retail space
    Monarch teams with Paper Handling Solutions Monarch teams with Paper Handling Solutions
    Marketing labels, packaging to a moving target Marketing labels, packaging to a moving target
    Skanem Group qualified as label converter partner for Thinfilm Skanem Group qualified as label converter partner for Thinfilm
    ‘It’s the people, stupid’ ‘It’s the people, stupid’
    CRON-ECRM joins FLAG as newest vendor partner CRON-ECRM joins FLAG as newest vendor partner
    Epson Advantage Partner Program launched Epson Advantage Partner Program launched

    Related The Bottom Line

    • Let go of the future – the future is now

      ...
      Rock LaManna 11.12.20

    • Three failed sellers who couldn’t let go – and a successful one who did

      Three failed sellers who couldn’t let go – and a successful one who did

      ...
      Rock LaManna 10.09.20

    • Do you have a Busia in your business?

      Do you have a Busia in your business?

      ...
      09.02.20


    • Pick up your keys

      Pick up your keys

      ...
      Rock LaManna 07.10.20

    • Ready for the burn?

      Ready for the burn?

      ...
      Rock LaManna 06.04.20

    • Seven ways to let go when you lose your job

      ...
      Rock LaManna 04.03.20


    • Letting go when the timeline is short

      Letting go when the timeline is short

      Family businesses have complex personal dynamics that affect how big decisions are made, especially when the timeline is short and the stakes are high.
      Rock LaManna 03.05.20

    • What does it mean to let go?

      ...
      Rock LaManna 01.31.20

    • Integrity Action Plan

      12 steps to raise your integrity IQ
      Rock LaManna 11.15.19


    • Make your ethical framework simple and memorable

      ...
      Rock LaManna 10.11.19

    • All the little lies

      ...
      Rock LaManna 09.06.19

    • Your brand promise can last a lifetime

      ...
      Rock LaManna 07.10.19


    • When bad behavior infects your company, integrity is the cure

      When bad behavior infects your company, integrity is the cure

      ...
      Rock LaManna 05.31.19

    • Your character counts with banks and lenders

      ...
      Rock LaManna 04.05.19

    • One bad contract can spoil your happy ending

      One bad contract can spoil your happy ending

      ...
      Rock LaManna 03.14.19


    Trending
    • Deep Dive Into The Packaging Supply Chain
    • VideoBite: Sun Chemical Drives Label And Packaging Innovation
    • APR Supports EMP With Range Of Flexo Needs
    • Epson SurePress Reaches Milestone
    • Maxcess Updates User Interface For Fife Guiding Sensor
    Breaking News
    • FINAT to hold online networking, educational forum
    • Epson SurePress reaches milestone
    • Maxcess updates user interface for Fife guiding Sensor
    • Bobst announces virtual packaging industry event
    • Edale appoints agent in Poland
    View Breaking News >
    CURRENT ISSUE

    April 2021

    • Label Insights: Kocher + Beck highlights GapMaster enhancements
    • Die Technology
    • Ink Innovation
    • E-Commerce Labels
    • Contingency Planning
    • Narrow Web Profile: Executive Label
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Study on Kemin’s DailyZz Botanical Supplement Yields Sleep Quality, Next-Day Performance Benefits
    FDA’s Dr. Cara Welch Opening Speaker at the 9th AHPA Botanical Congress
    Arla Foods Enters New Partnership to Reduce Malnutrition With Dried Papaya Snack
    Coatings World

    Latest Breaking News From Coatings World

    Jebsen & Jessen, Innospec Sign Distribution Agreement
    Axalta Schedules 1Q 2021 Earnings Conference Call
    SONGWON, Chemo International Inc. Announce Distribution Partnership
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    FDA Grants De Novo Clearance to Medtronic’s GI Genius Model
    Acutus Medical Receives FDA Clearance of AcQCross
    Thermo Fisher Scientific to Acquire PPD for $17.4 Billion
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Obituary Notice: Russell “Russ” Haines
    Abenza Chooses North Carolina for New Biologics Manufacturing Site
    Catalent Adds Cryogenic Capabilities at Philadelphia Facility
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Lush Launches Recycling Scheme in UK and Ireland
    Loud Lacquer Partners with Hush Puppies
    Tula Teams Up with 5 Influencers To Launch Skin Kits
    Happi

    Latest Breaking News From Happi

    PCPC Virtual Summit Features Legal & Regulatory Conference
    Biolage Unveils ColorBalm Hair Conditioners With Hair Color Benefits
    New Synthetic Biology Coalition Formed in US
    Ink World

    Latest Breaking News From Ink World

    Kumon North America Adds Speedmaster XL 106 from Heidelberg
    SE-DA Invests in Kornit Presto S
    Acrylic Resins Market Worth $21.9 Billion by 2025: MarketsandMarkets
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    FINAT to hold online networking, educational forum
    Epson SurePress reaches milestone
    Maxcess updates user interface for Fife guiding Sensor
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    First Quality to Discontinue Tampon Operations
    Freedonia Tracks Demand for Personal Hygiene Nonwovens
    TMC Supplies Sevinçler with D-Namic Stacker and Bagger
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Mainstay Medical Launches ReActiv8 in Australia
    Biogennix Rolls Out Agilon Strip Bone Graft
    Global Bone Tumor Ablation Devices Market to Top $111 Million by 2027
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Virtual ASMC 2021 Spotlights Advanced Semiconductor Manufacturing Excellence
    LG Display Cuts Down CO2-eq Emissions by 3 Million Tons in 2020
    European Commission's Innovation Radar Acknowledges 3 ARMOR Innovations

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login