Across Australia, New Zealand and Canada, many small and mid-sized packaging and print manufacturers are approaching a critical inflection point:
Succession.
You may have built your business over 25 or 30 years — investing in equipment, growing client relationships, and building a loyal team. But now you’re facing tough questions:
- What happens when you want to step back?
- Will your team stay if you sell to a competitor?
- Will a third-party buyer value your equipment, your staff — or just your margins?
In Canada, over 75% of SME owners expect to exit by 2035 — with packaging and commercial printing firms heavily represented in the exit wave.
In Australia and New Zealand, the print and packaging sector is dominated by founder-led SMEs, many of which lack formal governance or a succession plan.
And while the sector is full of operational know-how and family-like teams, most founders are still holding too much of the business in their own hands.
A Sector Ripe for Employee-Led Succession
Packaging and print manufacturing is capital-intensive, process-driven, and built on trust. That makes it uniquely suited to Employee-Led Buyouts (ELBOs) or Management Buyouts (MBOs).
Here’s why:
1. Operational Knowledge Is In-House
From press operators to prepress managers and client service leads — your team already knows the workflow, the customer specs, the job costing, and the machines.
2. Strong Asset Base = Deal Leverage
Whether it’s offset presses, die-cutting machines, wide-format digital printers, or packaging lines — your physical plant provides a foundation for structured finance.
3. Relationships Drive Repeat Revenue
Many clients stay with the same print or packaging supplier for years because of reliability, not price. Preserving the people behind the print protects revenue.
4. Margins and Maintenance Matter
You’ve spent years finding the right balance of throughput, yield and margin. Selling to outsiders risks disrupting that delicate formula.
5. Loyalty Can Become Leadership
Long-serving team members often have deep informal authority. An ELBO or MBO gives them a path to formal ownership — and keeps your legacy in the hands of people who care.
What Is an ELBO — and How Does It Work?
An Employee-Led Buyout (ELBO) is a structured transition in which you, the founder, exit the business by selling to your internal leadership team or employees, over time.
Key tools in an ELBO include:
- Vendor finance — staged payments to you, backed by business cash flow
- Asset-backed lending — using your plant and equipment to secure part of the deal
- Employee share schemes or trusts — allowing gradual ownership transfer to key team members
- Governance frameworks — so successors are supported, not overwhelmed
Crucially: Your team does not need personal wealth or outside capital.
With the right structure, the business can finance its own transition.
Real Case Snapshot (Anonymised – Australia)
Business: Family-owned packaging manufacturer specialising in short-run FMCG cartons and custom boxes
Founder age: 62
Staff: 26 employees, 3 production shifts
Challenge: Founder wanted to retire gradually. No family successors.
Solution:
- 60% sold to the Production Manager and GM via vendor finance
- 15% held in trust for future employee participants
- Founder retained 25% and stayed on as Chair for 18 months
- Introduced monthly board meetings and KPI dashboards
Outcome:
- Core team retained
- Two long-term clients expanded their contract volumes
- Founder exited fully after 2 years, having been paid out in full
Source: Blue Harbour Capital engagement (anonymised)
Illustrative Example (NZ – Composite)
A print finishing company in New Zealand with a strong book of packaging, POS, and label clients had a founder looking to exit, but unsure how to “handover the keys.”
Rather than selling to a larger print group, they structured an MBO with two internal leaders — the Operations Manager and Head of Client Services.
With coaching, vendor finance, and a gradual leadership transition, they retained every major client — and began offering new digital packaging solutions under the new ownership.
Why Founders Are Choosing ELBOs
“I want continuity — not consolidation.”
Selling to a trade buyer often means job losses, integration, or relocation.
“I want to reward my team, not just walk away.”
You’ve built more than a business — you’ve built a culture. Now you can protect it.
“I still need to extract value.”
An ELBO lets you realise fair value, without fire-sale pricing or rushed exits.
“I want a clean transition, not a clean break.”
You can stay involved as Chair, mentor or advisor — on your terms.
What Blue Harbour Capital Brings
We specialise in helping packaging and print business owners:
- Structure employee-led buyouts or internal MBOs
- Use vendor finance, trusts, or bank-supported hybrid models
- Coach new owner-leaders on strategy, governance and performance
- Build out 100-day plans, reporting cadences and team alignment
- Preserve your business legacy — without compromising on return
We’re not private equity. We don’t buy businesses.
We help founders exit on their terms — and make sure the next generation succeeds.
Five Steps to Start Your Packaging Succession Plan
- Clarify your personal and financial goals
- Do you want full retirement? A partial exit? An advisory role?
- Assess internal leadership potential
- Is your team capable — or coachable?
- Get a business valuation
- Including EBITDA, assets, client concentration and succession risk
- Explore structuring options
- Vendor finance, share schemes, trusts or aligned capital partners
- Plan for post-deal stability
- Coaching, communication, governance and financial monitoring
Let’s Talk Succession in Print & Packaging
Whether you’re running a digital print house, a corrugated box manufacturer or a label finishing business — one thing is clear:
The equipment can run without you. The team probably already does. Now it’s time to plan for a future that doesn’t rely on your daily presence.
Reach out for a confidential succession strategy conversation.