Alliance Laundry Holdings Inc.

World's largest commercial laundry maker with a wide incumbency moat, top-tier margins, high ROE and predictable replacement-driven demand.

Strengths

• Operating margin 18.6% (85th pct) and ROE 26% (81.5th pct) with ~26% Adjusted EBITDA margin
• ~40% North American share, ~600 distributors (94% tenured 10+ yrs), 8M-unit installed base driving recurring replacement demand
• Strong FCF (71st pct) with low capex (~3% of sales)

Risks

• Recently IPO'd, PE-controlled company with meaningful leverage and covenant exposure
• Quick ratio 1.09 (38th pct) and exposure to tariffs/FX and emerging-market execution

Notable findings

• Restatement◦ Some provisions of Delaware law, our Stockholders Agreement and our amended and restated certificate of incorporation and bylaws may deter third parties from acquiring us and diminish the value of 8-K ↗
• Exec changeRecent 8-K item 5.02 8-K ↗
• Strong balance sheetStrong balance sheet — $123M cash & investments
• China exposure◦ Our international operations require us to comply with applicable trade, export controls and foreign anti- corruption laws and regulations of the U
• Insider sellingInsider selling — 5 open-market sale(s) by 4 insider(s) (cluster of 4 insiders, ~$3M, last 6mo) Form 4 ↗