: "The employee-owners of ComDoc Inc. have agreed to sell the distributor of copiers and printers to Global Imaging Systems Inc. of Tampa, a subsidiary of Xerox Corp.
The deal is expected to close by the end of the first quarter. Terms were not disclosed.
Two years ago, ComDoc moved from 42 percent employee-owned to 100 percent. The company, now in Green, was founded in Akron in 1955 as a business equipment sales and service organization by Walter G. Griffith, father-in-law of current Chairman and Chief Executive Riley Lochridge."
Does Global Imaging have a separate P&L? Is it available to look at?
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What about the lowly employee owners who had 0 say in the matter?
ReplyDeleteThe "Comdoc Culture" is dead. Unless youre a monkey straight out of high school, with no other job opportunities, pass this one up! The culture is that of lies and deceit and now Xerox is ready to run yet another branch into the ground, only no Capt Sully on this flight!
ReplyDeleteThat's what I was afraid was going to happen. Any details you would like to share would be most appreciated. It really is a signal v noise problem. And there is soooooooo much noise.
ReplyDeleteFrom what I read from the outside, Comdoc is/was a great outfit. Employee owned, making lots of money.
Anything we might want to share from your view on the ground would be great to know about.
ComDoc leaders paint a good picture, mostly fiction. The turnover rate is extremely high -- 52% during the "good years" when I was employed there. Now that should give one a clue on their real culture.
ReplyDeleteI wonder if XRX knew what they were buying? It's always dangerous when you "buy" a channel instead of grow your own or work with the independents.
ReplyDeleteI worked for comdoc for several years and for the most part it was a good place to work. One reason being it WAS an employee owned company. Now on the other hand I will admit that if you were an employee that did NOT wear 'brown lipstick' your chance for promotion was nil. In other words hard work alone went unnoticed.
ReplyDeleteSo..once Xerox/ Global purchased what happened to the employees who had a piece? Did they get cash or stocks?
ReplyDeleteI'm very curious to understand how that worked out on the ground.
from what I understand they received cash.
ReplyDeleteThat sounds fair to them.
ReplyDeleteNow the question is will Global/Xerox be able to continue this as a profitable outfit once Xerox DNA replaces ComDoc DNA. I don't know enough to reall know, but based on previous experience with global corporations thinking they can buy profits and distribution, my bet it's going to be a real challenge to make this pay off for Xerox.
any thoughts?
Take a look at Comdoc's share value vs Xerox's share value,there is a huge difference. What I am saying is the chance of Xerox turning a good thing into a bad thing is very likely.
ReplyDeletei'm ready to believe that, but I don't where to find ComDoc's share value.
ReplyDeleteUnfortunately I am very aware of Xerox's share value and have been since 2005. Not a pretty story. Just recently I took a look and the market cap for the whole thing moves between 2.5 and 4.5 billion depending on when you look.
I believe Comdoc's share value when it was sold was a little over $200.00 a share and a anual income of 115 to 120 million give or take.
ReplyDeleteComdoc was a money maker but understand they were able to sell at a very low cost.
That low cost thing is the part I'm worried about for the big X. When Rioch bought Ikon and kicked out Cannon, I'm betting they were selling boxes at a low price.
ReplyDeleteThe thing I can't figure out is that Xerox sells OEM. That means their margin on boxes has to be very, very low. Meanwhile, the market for consumables is getting very competitive.
Are they just buying the say 120 million revenue? do they think they are going to increase it with Global/Xerox DNA and management? I can see how it will help the top line but how much is really going to fall to the bottom?
Maybe we'll find out on the 29th, but I'm not betting on it.
I am wondering if they did away with OEM/Comdoc (that is or was Comdocs subsidiary company) they sold mostly Xerox machines and parts for Comdoc.
ReplyDeleteComDoc had a separate business division that sold Xerox boxes and parts? Did they also have separate divisions to sell Canon and Ricoh? I don't understand how that worked.
ReplyDeleteThe only thing I can figure is that buying direct from Xerox was too complicated. Hmmmmm...
oh yeah, Comdoc's subsidiary sold primarily Xerox parts and toner and name brand toner. Also Minolta,and Kodak parts. But mainly Xerox pieces parts. Xerox of course did not like that I'm sure. But I am very curious to know if they did away with OEM/Comdoc (that being the subsidary name).
ReplyDeleteBuying directly from Xerox was a pain in the ass!
ReplyDeleteand WAAAAY to expensive, another reason Xerox's didnt like OEM/Comdoc. Comdoc' subsidiary co. did not deal with Ricoh or Canon.
I spent 25 years at ComDoc. I can understand some former employees crying the blues. The fact is the company was not perfect and made mistakes. But this was an agressive business that never stood still and never accepted anything less than everyone's best. The company attracted outstanding people and the focus was on development.
ReplyDeleteIt was a model ESOP that delivered everything and more to the participants. Those who stuck it out and commited to the mission, are all smiling as it relates to the sale payoff.
I've heard first hand that the transition from ComDoc to Xerox has been a bumpy one...ComDoc's service has steadily DECLINED over the past 5 years as their prices became cheaper and cheaper to put themselves in a position to be purchased. It became so bad, we had to switch to another vendor, but liked the ComDoc of old, before they got greedy and stopped caring about their customers.
ReplyDeleteAnon,
ReplyDeleteAssuming what you say is true, (i can't tell because of the anon) it's not a surprise.
Usually when a global tries to swallow an independent they eliminate the business processes that made it so valuable in the first place.
It's such a damn shame. Xerox knows they need a culture shift to get into the smb. But as every global finds out, writing a check doesn't do it. Even if it's a really, really big check.
Same thing with lots of the roll ups in the print industry. The most egregious recent example was Cenveo and Anderson Litho. I would be very curious as to how the Ricoh Ikon thing is working out.
The trick is to set up a separate business unit, keep the processes that created the value in the first place. The operational definition of corporate dna or culture are exactly the business processes.
I think that's what Amazon will probably do with Zappos and from where I sit, it seems to be the philosophy that drives Consolidated and Alpha Graphics among many others.
It's why I'm long on Consolidated Graphics.
i worked there for a few years. walked away with a nice roll of cash when it was all said and done. but as far as comdoc being a 'good place to work and a good place to be a customer, HA! those days are OVER. i had to deal with xerox every day and believe me they made so many mistakes on shipping and pricing. my bet is they (xerox) will run what used to be a decent co. strait into the ground. for the people who still work there (and those who at least show up to collect a pay check, you know who you are)take some advise get out now before xerox put you on the unemployment line.
ReplyDeleteThis last post sounds like a bit of sour grapes and anger if you ask me. The fact is, Global is the go-between here, with the belief that Global's ability to support the SMB is stronger than XRX. And Global has/had a solid reputation (metrically speaking) in that regard. And your bet is that XRX will run what used to be a decent company straight to the ground, yet you are giving advice to people who "show up to collect a pay check". Honestly, if there are people who are obviously just collecting a check, XRX / Global / ComDoc shoud put them in the unemployment line.
ReplyDeletefirt of all i am giving advise to most of the people who actually work hard and get little reward. just about every work place you will have those who wear the 'brown lipstick'. comdoc was known for rewarding those who wear the 'brown lipstick'. No sour grapes here.
ReplyDeleteit sounds like i might have hit a nerve of someone who might just wear the 'brown lipstick'
The execs at ComDoc made out like fat cats with many collecting multi-million dollar payouts. Many of these codgers have mentally checked out leaving their workforce floundering.
ReplyDelete