In this week’s episode, Founder Frank G. Cannata explains why independent office technology dealers need to understand the big picture when it comes to private equity (PE) firms making investments in the traditional dealer channel. He prefaces the discussion by stating that these are The Cannata Report’s suppositions based on people we’ve talked with: “It’s what we think,” and what we are hearing is that most PE firms are not very happy with copier/imaging revenues or the dollar turnarounds at the mega-dealers they’ve acquired. With ROI not being what they had anticipated, most PE owners are reluctant to spend a lot of money to sell print, Cannata believes. Instead, they might choose to focus on a part of the business, such as production printing or IT, for example.
In the end, these financial decisions hurt the multifunction printer (MFP) equipment manufacturers, Cannata notes, as major distribution points slow down their buying. Several factors contribute to this scenario, he adds, including the decay of print in the office and the move out of A3 MFPs down to A4. The OEMs aren’t worried about proven dealers, Frank reassures. But heading into 2026, what will your response be? He believes dealerships of all sizes need to answer this question, and he encourages business owners to take a look at what progressive-minded dealers like LDI Connect have done to find new revenue streams and improve profitability.
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