By Jeff Gau, Marco CEO – It seems like every time I open a copier industry email or publication, I’m reading about another string of acquisitions. And as you know, Marco is certainly an active participant. In recent years, the copier industry has seen a steady increase in consolidation.
Here’s a couple of the reasons why:
- Valuations are strong.
Multiples are the highest we’ve seen since Marco started acquiring dealers in 2005. Valuations will eventually level off. None of us can say for certain when that might be, but “timing is everything.” And, the timing looks pretty good right now. - Securing the future of your dealership will require an investment.
The build-out to execute on Managed IT takes a minimum investment of about $500,000. Buying it certainly is an option, but make sure you get what you are paying for. Outsourcing is another option; however, it doesn’t drive the same enterprise value.