US Integrators, Here Is Your Chance To Sell Out Now!

Tired of being an integrator? Want to cash out?

Well two MBA grads with a bunch of investors are committed to helping you do just that.

Horsemen Partners is looking to purchase a US comany, $5-30M with recurring revenue streams (over $150k/month). And this is their desired market (from their investment criteria):

  • Large fragmented market
  • Growing industry
  • Low risk of adverse regulatory changes
  • No impending technological obsolescence

Sounds like a security integrator to me.

Ready to retire early? Act now!


Meet the Horsemen:

Just a couple of regular guys!

Former Navy Seals, MBA's from Wharton and Columbia, you know the story. Ho-hum... ;)

One thing that makes them standout a bit from the others is their Legacy Preservation commitment:

Horsemen Partners will invest 100% of its management, financial, and leadership experience to the company’s success. We will take a direct management role in your business for the long term, preserving your legacy.

They must fancy themselves as hatchet men. The name 'Horsemen Partners' evokes apocalyptic visions.

Do they have any industry experience?

10 yrs in the Mensa Militia.

Update: I had a short call with one of the partners.

A few points:

  • Prefer more RMR as a percentage of total revenue
  • Prefer warmer climates for integrator location
  • Cited military experience, which is certainly impressive, but no real inudstry experience

Update: I had a short call with one of the partners.

  • Prefer more RMR as a percentage of total revenue
  • Prefer warmer climates...

John, it might seem tempting at first to cash-out.... But it's not so simple...

I guarantee you that after a couple of years you will start to feel a sense of loss, a void that even posting on other people's blogs can't begin to fill... ;)

Aloha means goodbye....

Update: this may not be happening. Here is their feedback on why they have decided not to buy an integrator right now:

"Major reasons for moving on:

- lack of recurring revenue
- bidding process on projects tends to drive margins down
The problem that we have been facing in the traditional security space is valuation expectations from owners- many think that they should get a 50x multiple b/c of the ASG and Protection1 deal. We still look at deals in the space and reach out to owners but we are not very optimistic about closing a deal in the near future in this space. "

The problem that we have been facing in the traditional security space is valuation expectations from owners- many think that they should get a 50x multiple b/c of the ASG and Protection1 deal.

So this 50x valuation must be of last month RMR, not of some yearly total.

It sounds like the Horsemen want more of an intrusion integrator than a video surveillance/access control one.

Yes convention in the alarm industry is to express multiples of monthly recurring revenue.

So 50x monthly ~ 4x annual revenue

    • Large fragmented market
    • Growing industry
    • Low risk of adverse regulatory changes
    • No impending technological obsolescence

Horsemen need to pivot and look at picking up a few lawn mowing accounts.