I am amazed by all of the acquisitions happening in the facilities maintenance space right now. As an entrepreneur, I am happy for the founders of these companies. I know first hand how challenging it is to build something from nothing but an idea, hard work, and a limited amount of capital. It's grueling work, especially emotionally, and to see these folks receive a reward for their efforts gets me excited. They deserve it.
However, as a longstanding member of the facilities maintenance industry, I am concerned. There is a relationship component makes it a great industry. So many of these newly acquired companies leveraged relationships and customers service to succeed. Their early opportunities were based more on the trust their relationships afforded than the business model. It was people trusting people.
So what happens when new owners take over. Giant real estate companies, private equity funds, outsiders with dollar signs in their eyes now have to justify their five to ten times revenue valuations.
I believe we are entering into an era of "profit maximization" for these companies. It's a patter I have seen in other industries, and now it's playing out in facilities maintenance.
Companies are now having their leadership changed to deliver shareholder and owner value over customer value.
Salespeople how built their careers on providing extraordinary value and service are being asked to sell price increases with less value attached to their offers.
Customer support people are having their hands tied and are being incentivized to protect company interests (translated: money).
With this consolidation comes an opportunity for founder-led organizations to fill the void in our market, which is what we aim to do at Envoy with our maintenance management software.
The offer is simple. We provide simple yet powerful maintenance management software, at half the cost of our competitors, with founder-led customer support, and we don't charge fees to our customer's vendors.
I am looking for two things.
First, I am looking for salespeople who want to provide their customers with value instead of selling price increases.
Second, I am looking for customers who don't want to get trapped in the profit maximization cycle.
If you are one of these people, please message send me a message on the form below.
If you know one of these people, please share this with them.