Nicolet Capital Partners, LLC, was a guest speaker at The Packaging Conference in Tampa, FL earlier this month. Mr. Snyder participated on a panel regarding M&A trends in packaging along with several other industry experts including former Coveris CEO Jack Knott and former Alloyd CEO Ed Parkinson.
Mr. Snyder discussed several recurring themes that often need to be addressed to improve growth potential in companies. He noted that management and others throughout the organization often have good ideas to generate growth but that execution is sometimes a challenge. Several impediments can contribute to this but Mr. Snyder cited two in particular from his experience. First, companies are often afraid to take calculated and well thought out risks. Second, related to this, companies need to prioritize their growth initiatives and focus on the most impactful ones that have the highest probability of success. Pursuing too many initiatives at one time dilutes the organization’s efforts and makes it difficult to determine if the strategy is wrong or if it is just being implemented wrong.
The panel also discussed how high valuations are impacting M&A generally across all industry segments. Mr. Snyder commented that Nicolet’s exclusive focus on Plastics, Packaging and Converting is a key element of its strategy to address higher purchase prices. Industry focus translates to an information advantage that helps Nicolet continue to identify attractive investment opportunities and provides the expertise needed to assist companies in value creation.
Mr. Snyder also spoke last month in New York at Capital Roundtable’s conference on Private Equity Investing in Packaging Companies. Mr. Snyder discussed how foreign competition, vertical integration, consolidation and certain technology trends may impact investment thesis in various segments of the packaging industry.
About Nicolet Capital Partners, LLC:
Nicolet Capital Partners, LLC, located in Chicago, IL, is a private equity firm that makes both majority and minority equity investments in established businesses across a wide range of basic industries. The firm targets equity investments of $20-75 million in companies with distinct market positions that possess sustainable competitive advantages. Nicolet Capital has specific expertise in industries related to Plastics, Packaging and Converting. In addition to its equity capital, Nicolet Capital can provide complete, committed debt financing for its transactions. For more information on Nicolet Capital, please contact them at 847-563-5377 or visit their website at www.nicoletcap.com.