Why Join RMC? Insights for Entrepreneurs and Legacy Business Owners
The Food & Beverage Sanitation, and Water Treatment markets are excellent industries to be a part of with tremendous customer loyalty, repeat revenue, and indispensable services linked to complex business operations. Thousands of food & beverage businesses depend on service providers like us to provide quality products and strict controls over food borne pathogens. Similarly, water-based systems for heating, cooling and wastewater require both a wide range of products and industry experts to apply these products in an optimum manner, to operate expensive systems efficiently, and to protect human health from water borne pathogens. Threats from imports are relatively low in our industry thanks to the economics of regional delivery and local service requirements, and specialty chemical formulations are unlikely to be replaced by alternative technologies for the foreseeable future.
But challenges remain for independent firms in this industry...
- Our industry is consolidating. Large strategic firms are looking to acquire smaller firms to gain market share. Private equity has also begun to make investments in this industry.
- Banks are getting more conservative, tightening credit lines, and are enforcing stricter operating covenants.
- The food & beverage industry is also consolidating, with large firms acquiring independent startups and regional businesses, often resulting in a supplier change to one of the national or global players.
- Competition for national and global corporate accounts is increasing, with Ecolab/Nalco and Diversey/Solenis defending their position with aggressive pricing, “prebates” and other tactics.
- Larger firms are potentially widening the competitive gap with smaller firms through investments across R&D and automation.
So why consider joining forces with RMC?
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RMC’s business values and philosophies align very well with entrepreneurs and legacy business owners:
Our core values of integrity and safety have guided our actions for 135+ years. These values are enhanced with our new partners at Peak Rock Capital.
We sell our programs on value, not on price. Our products are designed with the highest quality raw materials and formulations – not to achieve the lowest price-per-gallon, but the lowest use-cost when properly applied.
Our sales and service teams are problem solvers and work creatively with our customers to achieve their business objectives.
We treat our team members with dignity and respect and encourage their growth both personally and professionally.
- Given the macro-economic forces at work (consolidation, tighter banking terms, inflation), the time is right to join forces to become the “go-to” service provider of scale in our chosen markets.
- Combining the best ideas from your company and ours will drive synergies and new opportunities across both businesses. This includes commercial and operational opportunities across sales, purchasing, R&D, production, and other areas.
- Choosing to partner with RMC provides you with a liquidity event and financial protection against uncertain business environments in the future.
- A partnership also provides significant career opportunities for you and your employees. We stress continuing education, industry specific certifications, and promoting from within.
- Peak Rock has strong financial and strategic resources and will fund growth at a rapid pace, without sacrificing the core values that made our businesses successful.
In summary, RMC is a unique platform that is looking to partner with other like-minded business owners – like yours – to generate scale in terms of size, geographical presence, and sales & service capabilities. Together, we believe that we can build something truly special that will meaningfully benefit our customers, our employees, and most importantly – our communities.
Thank you for your consideration and we look forward to potentially partnering with you!
Jim White
Chief Executive Officer