The laundry market has seen a lot of consolidation over the past several years. We estimate that the Top 4 companies (Cintas, Aramark, UniFirst and ALSCO) have grown substantially through mergers & acquisitions (M&A). In the past 25 years, M&A has helped the Top 4 increase their market share from less than 15% to an estimate of over 60% today.
Although difficult to admit, all owners should realize that at some point they will need to sell their company. Whether that be to a partner, a family member or an external party, it is inevitable that a transfer of ownership will need to occur. When that time comes, a question they will ask is “Do I need an advisor to help me or would I be better off selling the business myself?”.
A good portion of our industry is comprised of family-owned companies which have been passed down from generation to generation. To manage family succession, companies have continued to groom family members as successors to take over the management of the
Although your business is likely your most valuable asset, I have found most owners don’t know the true value of their company. Making things more difficult, the owner’s perception of value can be quite different than the market value. Importantly, this perception can swing either way — owner perception could over-inflate the business’ value or owner perception could be much lower than actual value.
I first want to thank those who have connected to my site and are reading this. You are now reading the initial blog post of Envise Partners, LLC. This represents the first of an ongoing set of blog posts which will be published over the coming months.