Ready to retire? M&A maven reveals how plastics processors can maximize company's selling price


If, like many of your baby boomer peers, you've been thinking about hanging a "gone fishing . . . for good" sign on the door, the good news is that it's a sellers market for plastics processing companies. You could make out like a bandit. But don't dither, cautions Deborah Douglas, Managing Director of the Douglas Group (St. Louis, MO), which specializes in mid-market mergers and acquisitions (M&As). As more boomers retire in the next few years and supply starts to meet demand, prices will fall.

In M&A terms, "2014 was a dynamite year for plastics processors," Douglas told PlasticsToday, "and 2015 is looking good, so far, as well. But I expect this to drop in the next two to three years. The market is still very good, with more buyers than sellers. Pricing is always affected by supply versus demand, and the supply of good middle market sellers right now is light. That helps pricing," says Douglas. But as baby boomers start retiring in greater numbers, those market dynamics will equalize, she adds.

Read more