If you are an operator, I am expecting your call. Typically, after a successful and exciting NAMA Show, there is plenty of M&A interest from both buyers and sellers. Why does this happen? There are multiple reasons. I am already hearing from operators who attended the show and after talking to operators who recently sold, they are now realizing that their businesses are a very hot commodity.
Record attendance
Following the 2025 NAMA Show, there are a lot of good reasons for operators to be excited about the convenience services industry. For starters, record attendance at the show. That is a healthy sign. How does that happen considering the amount of consolidation - the continuous M&A activity? We know how active we have been representing sellers at VBB Advisors, so where are all the attendees coming from?
Lots of newcomers
I talked to Bob Tullio, the host of Automatic Merchandiser’s Vending & OCS Nation Podcast, who said he attended multiple education sessions at the 2025 NAMA Show and saw plenty of industry newbies. “There was a session on landing big accounts by Josh Rosenberg from Forward Thinkers. He asked the audience, ‘How many are attending their first NAMA Show?’ There were at least a dozen hands that went up – about a third of the room,” said Tullio. “That group was huddled up after the session, brainstorming about the business, leaning on each other and they confirmed to me that they were all new operators, mostly under one year in the industry.” It is another healthy sign – the industry is growing.
Positive sentiment
Tullio told me he interviewed more than 25 operators for an upcoming podcast and the sentiment was overwhelmingly positive. “They are excited about the direction of the industry and the return to office movement,” said Tullio. “There are some concerns about tariffs and how that will impact pricing, but that changes every day, just look at the new deal with China. Also, most operators feel that eventually, there will be a four-day in-office work week, which could boost sales by 20%, because each added day has a big impact. Today, operators are truly focused on capturing every available dollar that is being spent in the workplace. With the equipment and products now available, operators have the tools to generate more sales than ever,” he added.
Price is not the #1 issue
Tullio pointed out that operators are finding much less resistance to price increases and are not hesitating to implement them. “One operator told me that he feels the customers are not surprised by increases that are out of the operator’s control and that price is not the biggest issue when an employer wants their people to return to the workplace. A quality amenity and a great employee experience is critically important to many accounts – typically their best clients,” he said.
Technology is a trigger
Last year, there were a couple of smart coolers at the NAMA Show. At the 2025 Show, there were 28 different smart coolers on display, and they are getting smarter than ever – utilizing AI and now handling ambient temperature as well as hot meal offerings. The rapid growth of smart coolers is bringing down the cost and is a very attractive feature of the industry that is generating interest among newcomers – some of whom want to operate smart coolers exclusively.
Positive indicators
In an article I wrote for Automatic Merchandiser and Vending Market Watch in August of 2024, I listed five key factors, defining characteristics that can elevate your company to the status of “premium acquisition.” These are factors that are generally out of the control of operators. The indicators from the NAMA Show point positively for four of those factors, while factor #1 – your business location, is always a wildcard.
- Location
- Gross Profit Margin
- Technology
- The general economic outlook
- Quality Accounts
Based on the rush by new operators to enter the business, being in the industry is clearly seen as desirable. That’s another big positive for sellers.
Operators need M&A assistance, but they also need confidentiality
In a break from tradition, there was an education session at the NAMA Show dealing with M&A. While I’m sure it offered some information, if I was an operator, I would be a little uncomfortable attending a session about selling my business. That is how rumors get started. I can hear it now: “I saw that my competitor (Joe) attended a session on selling your business. He must be planning to sell!”
Instead of putting operators at risk, VBB Advisors provides an ongoing flow of information through our newsletter and ongoing articles in Vending Market Watch, like this one on the topic of confidentiality. After almost 40 years as a sell-side intermediary, I would question the judgement of attending or offering an education session of this nature, for obvious reasons.
As I wrote in our newsletter last year:
“For convenience services operators, here is the bottom line regarding the importance of confidentiality when selling your business: It protects the value you've built into your business as it relates to customers, suppliers and employees. A loss of confidentiality can upset all three of those critical value components. I have seen it happen – it is not pretty, but it is completely avoidable.”
Take that critical first step. That is often the toughest one to take.
Order my free 2025 Exit Strategy Planner. At the very least, it will provoke some thought, and this is a good time to think about your future.
Whatever your reasons are to sell your company - the timing, a sense of frustration, the desire to enjoy life or an interest in rewarding yourself for years of hard work – VBB Advisors can help you realize your goals.
I am Mike Kelner, the leading sell side intermediary in the convenience services industry. Let’s sit down and have a conversation. Use this appointment scheduler to set up a meeting with me.
Or – give me a call at 704-942-4621
