Editor's Note: This is the third of a series of four articles about exit strategies for printing company owners.

In the first article of our series we discussed how the old Chinese proverb "He who rides tiger must find way to dismount" relates to the printing industry and how print center owners can prepare to dismount or exit the tiger of a business they have founded and ridden successfully for many years. In the second article we explored selling to "a member of the pride," meaning either an employee or family member.

This article will explore selling to someone not belonging to the pride, meaning someone from outside the industry looking to own their own business. It could be the knight riding that white horse you envisioned, a poacher looking to pick up your business for a song, or more likely someone in between the two.

Advantages of Selling "Outside the Pride"

There are several advantages to selling a printing business to someone outside of the business and outside of the industry.

A major advantage is that you may find a buyer who has substantial resources, both financially and in terms of abilities to run a business. There are many people in corporate America who are being downsized or just may be fed up with the corporate life and working for "the man." They can bring new life and enthusiasm to a business in terms of being willing to invest in technology and marketing that is so necessary to achieve success.

Often these buyers have the ability to make significant cash payment to purchase the business and may have the ability to obtain outside financing as well. As noted in the first article, most often the seller will need to carry back a portion of the purchase price to make the deal work. If you did not read that article please do so because, although most sellers want all cash, it is most often not reality in selling any small business. Moreover, carrying back part of the purchase price can have significant advantages for both buyer and seller if a fair and equitable purchase has been negotiated.

The right buyer from outside the industry may also not have the limitations of someone who is too close to the industry. Certainly, the industry has changed substantially over the last few years, along with the skill set necessary for success. It takes strong talent in sales, marketing, and especially business management to navigate the jungles we face today. Many shop owners built their business in a time when "craftsman" expertise and hard work were more important than sales ability or the ability to read financials. Many of those people are now gone—either closed or consolidated/absorbed by another "pride."

If that right buyer is found, the employees of the business being sold have the benefit of working with the new owner to move the business forward. This can help secure their jobs going forward. This is important to most of us, as discussed in the first article. We care about the future of the staff members we have worked so hard to develop over the years. In like manner, most owners also want to ensure their customers are cared for properly in a business transition.