U.S. Business Press president on the acquisition trail - Roland DeSilva

Folio: The Magazine for Magazine Management, Nov, 1984 by Ira Ellenthal

Just over a year ago, Roland DeSilva, a little-known publishing executive, startled trade magazine watchers with the acquisition of Charleson Publishing Co., itself a little-known enterprise, but one whose sales and profits hadn't gone unnoticed by acquisition-hungry publishing giants.

All but one of the Charleson titles--American Building Supplies, a recently acquired monthly--had carved prominent niches in their marketplaces. The other monthlies--Modern Floor Coverings, Toy & Hobby World, Non-Foods Merchandising, Leisure Time Electronics, Product Marketing and Food & Beverage Marketing--were reported to be highly profitable, generating collective advertising sales of some $11 million.

"At least a few major publishing firms, especially foreign ones, had looked at the company or were looking at it," says a respected publishing consultant. "All of a sudden, Roland DeSilva, with an investment banking firm (Dillon-Reed) and a management company (Keeley Management) behind him, appeared out of nowhere and snatched it away."

Although essentially correct, the comment is overstated. For one thing, there was nothing sudden about DeSilva's acquisition quest: He worked on the Charleson deal for six months. For another, he didn't, exactly appear out of nowhere. He had spent 20 years in publishing, including marketing, finance, administration and sales, at McGraw-Hill, Chilton and, more recently, International Thomson. His background was strong enough to give his investors the confidence to plunk down an estimated $12 million for Charleson.

Described by a former colleague as "savvy, tough, and aggressive," DeSilva didn't tiptoe into his new assignment as president. He immediately renamed the company U.S. Business Press--and, just as swiftly, he folded American Building Supplies, which was swimming in red ink. "Unless a publication is filling a need in the marketplace, it's foolish to stay with it, foolish to fight an expensive turnaround battle," DeSilva says. "So many publications go under because no real need for them exists."

The other changes that followed were designed to strengthen the operation without losing momentum. When one publisher left to start his own magazine, deSilva replaced him with a seasoned professional from McGraw-Hill. Two other key publishing slots that opened subsequently were filled from within. Marketing, finance, production and circulation were centralized under a corporate team hired by DeSilva to bring a new dimension of management to the business. New, larger and more efficient office space was rented. The graphic presentations of several of the magazines were upgraded noticeably. And, maybe most important, word went out that U.S. Business Press wanted to acquire other publications.

To hear DeSilva tell it, the acquisition trail is already hot. "It won't be long before we add a few titles," he says "We're not looking for the sake of looking--we're looking for the sake of buying."

It is apparent that DeSilva has the money to put where his mouth is. As a colleague says, "The investment folks behind this company believe in Roland and what he can do. No one, including Roland, would have gone after Charleson unless the company were seen as a springboard for a much bigger operation."

To the question of "How big is big?", DeSilva's response is characteristically bold. "I fully expect this company to be worth no less than $50 million within five years," he says. "And I wouldn't be the least bit surprised if it's much bigger than that."

He envisions between 18 and 30 titles under the U.S. Business Press aegis by the end of the decade, most of them coming initially through the acquisition, rather than the startup, route. "Right now--and this could change--I prefer to purchase magazines because of their existing cash flow," he explains.

DeSilva is also looking beyond traditional avenues in order to seed his company's growth. "Trade shows, seminars, direct marketing, contract publishing--anything and everything that can be beneficial to our advertisers and to us--figure in our thinking," he says. "Frankly, if we can effectively articulate our strengths, we can crack many other parts of the communication budget."

DeSilva thinks U.S. Business Press is poised to make significant inroads into existing and future markets. "It doesn't take a genius to perceive the opportunities within our grasp," he comments.

His own grasp of magazine publishing reflects both the conservatism of the large corporate mentality and the daring of the entrepreneur. "I'm an opportunist," DeSilva says thoughtfully, "but my basic publishing style is tried and true: Know every step of what you're doing and what you plan to do in connection with ad marketing, circulation, editorial and financing so that you can serve the reader, and thus the advertiser, as well as you possibly can. Finally, when you've put together a quality package, you can charge a premium price for it. This is what all good and great magazines are about."