Enter the Private Investor

In the past several years, the catalog industry has become an attractive target for financial investors. These private equity firms and institutional investors differ significantly from strategic investors looking to build their own businesses.

When a cataloger like School Specialty buys 45 companies in the span of 10 years, its purpose is to build its own market share. Likewise, when Deluxe Corp. purchased New England Business Service last year. But it may be another scenario when an outside financial investor is the buyer. Such an investor may be in it only for the short-haul, to make money on the investment in three to five years, then sell it and move on to the next deal.