Opportunities Submitted

RGx ownership has identified 1+ million grossly under-utilized Corporate Copy Centers in the U.S.
It cost more than $94 Billion annually to operate these Copy Centers.
Each Corporate Copy Center duplicates the Real Estate, Equipment and Staff of every other Copy Center.
In 2023 Corporate Leadership is laser-focused on 'Reinventing the office' to shrink unnecessary expenses.
PaaS (Print as a Service) Hybrid Copy Center Outsourcing will significantly shrink this $94 Billion expense by eliminating duplication, inefficiency and waste.
Executing this Plan requires both New Capital and New Leadership experienced in scaling a proven, successful business model nationally.

Ownership is searching for a PE Investor committed to executing our plan. We propose selling 100% of RGx at Market Value plus a 1% royalty on future sales – including future sale of the business. Ownership will provide any assistance requested without interfering with New Leadership.

Patrick Monahan, the Founder, had previously founded a telecommunications consulting firm that was ultimately rated Top 5 Nationally by both AT&T and IBM. As a consultant he entered the print industry with the goal of identifying a significant problem within the industry and developing a solution.

Print in the U.S. is a $200 Billion industry with a 6.7% CAGR. So the problem isn’t the size of the industry or its healthy growth rate, the problem is excess production capacity for both producers and consumers. There are more than 45,000 print shops in the U.S. – mostly Mom & Pop shops, mostly losing money as a result of duplication, inefficiency and waste.

There are also more than 1 million grossly under-utilized corporate copy centers with an annual operating expense in excess of $94 Billion. Each of these corporate copy centers duplicates the real estate, equipment and staff of every other copy center.

PaaS (Print as a Service) will generate significant Revenue and EBITDA by consolidating both print producers and corporate copy centers.

Patrick Monahan, the Founder, had previously founded a telecommunications consulting firm that was ultimately rated Top 5 Nationally by both AT&T and IBM. As a consultant he entered the print industry with the goal of identifying a significant problem within the industry and developing a solution.

Print in the U.S. is a $200 Billion industry with a 6.7% CAGR. So the problem isn’t the size of the industry or its healthy growth rate, the problem is excess production capacity for both producers and consumers. There are more than 45,000 print shops in the U.S. – mostly Mom & Pop shops, mostly losing money as a result of duplication, inefficiency and waste.

There are also more than 1 million grossly under-utilized corporate copy centers with an annual operating expense in excess of $94 Billion. Each of these corporate copy centers duplicates the real estate, equipment and staff of every other copy center.

PaaS (Print as a Service) will generate significant Revenue and EBITDA by consolidating both print producers and corporate copy centers.

From the beginning the plan was roll-ups – acquire and consolidate under-performing print shops. In eight years RGx acquired and consolidated 5 small print-shops with sales of $600k to $1 million. As a result of this consolidation we eliminated $3.7 million in duplication, inefficiency and waste, and converted 5 print-shops that had all been losing money into a single, successful business that has generated positive operating income 15 of the last 16 years (2020 was the exception).

Step two has been a commitment to ‘Lean Manufacturing’ that has streamlined all processes from order through delivery, billing and collection. As a result our Revenue per Employee -- a KPI in manufacturing -- has grown from $158k in 2019 to $300k in 2023.

As explained, growth to-date has largely been the result of aggregation. We have now launched a Nationwide Direct Mail Marketing Campaign targeting highly-successful Residential Realtors to provide high-end, turn-key Direct Mail Marketing services.

This campaign, assuming it’s successful, converts RGx from a Chicago Loop printer to a National Direct Mail Marketing firm. It also fulfills a key strategic goal of blending services with products.

Tailwinds:
 Marketing budget shifts from digital to print
 Corporate initiatives to ‘Reinvent the office’
 Aging print-shop owners with no successors or interested buyers
 Logic: Duplication, inefficiency and waste cannot be logically defended

Headwinds:
 The Economy
 International Conflicts
 Pandemics
 Greenwashing (Reality: Print is the ‘Green’ alternative to the Internet)

The Print Industry suffers from extremely weak leadership and management. Generally speaking print-shop owners are print technicians who simply do not understand sales… marketing… HR… finance… banking… tech… everything necessary to run a successful business.

Faced with intense competition, rising costs and growing losses, their knee-jerk reaction is to lower their prices. In turn other print-shop owners lower their prices to compete. It's a race to the bottom. The end result is 98% of small print-shop owners are circling-the-drain and not understanding why. They have no successors because their children have no interest in taking-over a failing business, and there are no buyers interested in acquiring a business with no future vision. Consolidation is inevitable. It should be planned and profitable.

On the corporate side, copy centers exist because “we’ve always had one.” As the Purchasing Director for the AMA said: “Our copy center is a total waste of money, but we may not lose it until our Senior Management dies.” This attitude is rapidly changing as businesses recover from the effects of the pandemic.

RGx is unique because its principal owner is not a print technician. However, as a career Management Consultant, he does understand sales… marketing… HR… finance… banking… tech. Everything necessary to run a successful business. He understands Business Valuations and the importance of making every business decision with an eye to increasing the Value of the business.

Unlike most mid-career changers switching from banking or sales, Pat Monahan’s goal was not to simply build a nice little corner print-shop and earn a comfortable income. His goal was to identify a significant problem in the industry and create a unique solution. The problem he identified has a $94 Billion price tag. PaaS, the solution he created, is both simple and unique. In the process he managed to produce an income that is not merely comfortable, but exceptional.

Now, rather than clinging to the business, ownership is prepared to hand it over to successors with the expertise and ability to build a significant National (International?) business.

An RGx acquisition stands on its own and will provide a quick ROI out of internally-generated Cash Flow. Ownership is so certain PaaS will be highly-successful it’s willing to minimize risk to investors by simply requesting a 1% Royalty on future sales. The infrastructure required to support PaaS will come from earn-out acquisitions of existing print-shops: Instant Market Presence | Instant Customers | Instant Cash Flow through Consolidation | No Debt on the Balance Sheet.

The major obstacle is finding a PE investor capable of looking beyond their attraction de jour to start-up Cannabis or Tech companies that experience shows are mostly doomed to fail.

An investment in RGx, although not sexy, is an investment in a solid, established, growing industry; and a solid, established, growing and profitable company with a growth strategy similar to Amazon in the mid-90s: a more efficient way to deliver a commodity product in an over-crowded industry without creating new technology. All that’s needed is Capital and experienced Leadership.

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