Cobalt SP Is Going To Become One Of The World's Largest Security Integrators (Co-CEOs Interview)

Executive *******

****** **** ********* ****** *** ** the *****'* ******* ******** *********** ** the **** *** *****. **** *** to ******* "******" ** *********** *** year *** ****** "** *** *** awesome ** [**] ******** ***." ****** emphasized *** ** ****** *** ******** from **********, ******** ******** ****** *** PE ****** ******, ********* ******** ********** such ** ****, **********, *** ******** services.

*** ****** ***** ***********, ****** **** ** ***** ********* pay "******-***** *********" ** ****** *** new ************. ** **** **** ** would ** ***** ******* ******* ($*-$** million ** ****** *****) ***** ********* are **** ********** **. ******* ******* into *** ******, ****** **** **** it ***** ****** ** *** *** business *** "** **** ** ********."

*** **** ******* ********** ******* **** and ***** **-****** ***** *********** ** that **** **** ** ****** *** brands ** *** ******** *********** *** the **** **** ******* ** ************* the ********'* ****, ***** ** *** norm ** **** ********.

Launched ** ******** **** ** * "****** ********* ********"

****** *********, * ** **** **** $17 ******* *********** ****** ******* ********, ***** ** ****** ** "****** solutions ********," ** ******** **** *** acquiring ******** **** *********. *** ******* then ******* ******** ***** ***** ******** integrators ** *** *****-***** ****** ** complement *** "********." ******'* **** ****** acquisition ********** ************ **** ******, *** ****.

*** ** ******'* **-***,******* ********, *** **** ***** **** ******** ** *** ************ Colts******* **** *** **** *** ***** became ****** *********** ******* **** - ****. ******** **** ****** ** ********* executive **** ****** ********* ** **** after ********* *** ************* *****. ** told **** ***** *** *** ******** with ****** ****** **** *** ********* to ******** ******* "****-****** *******" ** scale:

** * *** ******* ********, * was ********** ******* *** *** *****:I ****** ** ******** ******* ****** **** **** ***** * *** ******* ** ********, and I ****** ** ** ** ** ***** *** ** * ********** *******. I loved serving my district, and I loved my constituents. My district was very blue-collar. Northeast Ohio, where I am from, is a work-with-your-hands kind of place, and I just love that. [Emphasis added]

** ***’* * ***** ***. * grew ** ** **** ***********. * knew * ****** ** **** ******* that **********, *** * ****** ** do ** ** *****. ***** *** the ***** ****** * **** ** work ****.I ****** ** ***** ****-****** ******* ** *****, and we were looking for industries that would allow us to do this. We came across the access solutions space and fell in love with it. So, it’s a perfect fit across the board. [Emphasis added]

End ****: *** *** ******* *** ****** ** ************ * ****

** ******** ******, **-*** ******* **** that *** **** ******* ** **** "dozens ** ************" * **** ** become "** *** *** ** *******" as ** ***:

** **** ** ** ** *** and ******* ** ** ******** ***. Being *** ** *** *** ****; awesome ** *** ****. ** ***** big **** **** ** ****** ** being *******. ** *** ******* ******* on ****, ** *** ******* ** make ****** ** ************ ********.

****** ******* ******** **** "*** **** come ** ****** ** ***** *******," he ********** **** *** **** ***** to "** *****" ** *** **** time ** "***** *************":

** ** *** **** **** ** be *** *** *** **** ** being ***. ******************, ** **** ** be *** ** ***** *****. ** want ** ** *** ******* ************** behind *** ***** ************* **** ******* them ** ******* **** *** *** players. ** ** ******* ** **** strategy *** *** ******* ********** ** a **** ****, ** **** ** quite *** ** *********.

**-*** ******** **** ********** ** *** "big *** *******" ******* ****** ******* to *******:

** *** ** ** *** ******* and **** ********* ******* ** *** entire ********, *** **** ***** ********* for ***** **** ***** [******* **********' co-founder *** ***], *** ********, *** employees, *** *** ***********. ** **** to ****** *** **** ********** ********** any ** *** ****** **** **** had, *** ** **** ******* **** you **** * ************** ** ** impactful ** *** *********** **** *** are ********* ****** ** **** **. That ** *** ** ***** ***** it.

*** ******** ** ** ***** *** best *** ******* ******** ** *** where *** **** ***** *****, *** the ******* ***** ******. ** ** do ****, ** ***** *** **** employee, ********, *** ******** ************ **** be ***** **** **.

"Operate **** *** ****** ***** ********* *** ********* ****"

********** ** *** ***** ** *** website, ****** ********** **** ** * parent *******, ** **** *** **** away *** *********'* ****** *** **** only ******* "****** *** ******":

******'* ********** ******** ** ******* **** the ****** **** ***** ********* *** customers **** *** ****. ** ******* from ****** *** ****** ** **** our ********** *** **** ***** **** potential.

**** ***** ******* ****** ****-*** *** not **** **** ******** *** ****** consolidated *** ******** ******** ***** *** name. *** *******,*** / ******,*******************, *** ****** ******** *********' ***** and ******* ** *** *** ******.

"Big ******* ********* *** ***** ******* ****"

*********** *** *********** ** ***** **********, including ******* ***** *****, ******'* **-*** Hoffman **** **** **** *** *** company ** *** **** * "******* national ************" *** **** ** ****** "big ******* ********* *** ***** ******* feel:

** *** *** ****** ** **** gobble ** ********** ** ******* * monster ******** ************. [** ****] ******* against *** ***** *** *** ***** that. **** *** ** * ******, workable ********. *******, ** ************* ******* that ***** ********** ****** **** **** are ******* *******.

[** **** ** *** **** ** can *******] *** ******* ********* ***** preserving ***** ******* ****. **** ** one ** *** **** **** ** address *** **** ****-*** *** ****, which ** **** ***** ********** *** difficult ** *****. **** ** *** answer. ** ** ****** ***** ******* players *** ***** ** ******* **** the ****** ******* ***** ******** **** to **** ***** *** *******.

"Our ********* *** *** **********"

******* *************** ****** **** ******, ******'* co-CEO ******** **** **** ****** ********* its ********* *** ********* **********, *** the *** ******** ******* *** *****, even ****** *** ******** ******** ***** also ** ******'* *** *********:

** *** **** ** *** *** biggest ******** ***********, “*** *** **** customers? **** ***** ******** **** *** end *****." ** *** **** ** ask ** *** *** ********* ***, our ********* *** *** **********. **, in **** *****, ******* ********** ** our ********.

** ** *** ********** ****** ********* -- **** **** ******** ****** ** build *** ** ****** **** ***** our ********* ** ** ******, ******, bigger ******** ** **********? **** ****** that *** ********** *** *** ********* and ** **** ** ***** **** is *** ** **** **** ** very *********** **** *** ***********.

Possibilities ** ******** ****** **** *** ****

***** ******'* ******* **** ** ** keep ***** ***********' ***** *****, ******'* other **-***,***** *******, **** **** **** ** ** possible *** **** ****** ** *** long **** **** **** **** ******** brands ***** ** "*** ***** *****" for *** ************:

***** ***, ******** *** ****** ** Cobalt ** *** **** ** *** plan. ** ******’* ** ********** **** our *********, ***** ** ** ******* our ********** **** ****** *** ******. Although * *** ********* ******* ** realizing ** **** **** **** ** the ****** ** **** ******** ** 2024 ** ****** **** *****. **, while **’* *** **** ** *** plan *****, ** ****** *****’* * possibility ** ********* ** *** ****** that [******** *** ******] ** *** right ***** ** ** *** *** employee, ********, *** ******** ************.

Using *** ****** ********** *****

****** *********** *** ******** ** ******* local ***********' *****, ****** **** ***** operations "****** *** ******," ** *** company **** **** **** ** **** transition **** ** *** ********* ********* into "* ****** ********** *****" ********* "field **********, ***** ********, *** ***" tools.

Collaborate *** ******** ********

***** ******* ********** ******, ******, **** other **** ***********, ***** ** **** the ******** ************ / ********** **** together ** ******** *****, **** **-*** Hoffman *********:

** ********** ****** *** *** ****** to **** ******** ** ******* ********* with **** ************* ******** **** ************** and ****** ******* *****. **************, **** could **** *** ** *** ****** takes ** * ******** ******* *** then *********** **** ***** ****** ****** to ***** *** ********’* **** *********.

*******-****, **** ***** **** *** ** our ****** ***** ** * ******** to **** ***** ******** *********** ***** and **** *********** **** ******* ***** Cobalt ***** ** ***** *** ********’* door *****.It’s ********* **** ** ******** *** ******* ************* ******* to help address as many customer needs as we can, while also ensuring our businesses continue to stay focused. [Emphasis added]

Addressing ********* ***********' **********: ****** ***********

** ********* ******'* **** ** ***** "big ******* *********" *** *** *********, co-CEO ******* **** *** ****** ******* :

** ********* **** ** ***** ********* at ****** ** ****** *** **********, “Hey, **** *** **** ******* **********? What *** **** ******* **********? **** would ********* *** **** **** *** you ** ** **** ** ***** this ** ******* ** ** *** Cobalt *****?” **** ** *** ********** recruiting ******* ** *** *** ******** – ** ***** ** **** *** over *****.

**-*** ******** **** ***** ***** ******'* efforts ** ******** ******** *** *********** functions ****** *** ************:

*** ***** ***** ** **** ******* our ******* ** ** *** ****** front. ** *** **** ** *** any ***** ******** **** ***** ******* challenge **, **** ** *** **** they **** **** *** ******* *** retaining *** ****** ** *** ******* bottleneck ** *** ********. **, **** day *** ** **** ******* ** building * ****** ******** **** *** recruit, ****, *** ***** ******** ***** for **** ** *** **********. **** includes *****, ***** ***********, **** ****** staff *** ******** **** *** ********** need.

*** **** ****** **** ** *********** remains ** ** ****, ** ** has **** * ****-******** ********* *** most ******** ***********, ***** *** *****.

Vertical ***********

****** **** ****** ***********, ****** **** offers **** ** *** ***** *****, which ******** ********* ** ********* ** verticals *** ***** ********** ********** *** no ********* **:

** *** **** ******* **** ** the ***** *****. ***** ******* ** going ** ** ** * ********* place ** ***** ** ***** ***** sophistication *** *** ******* **** **** are **** **. **** ***** ***, “Hey, * ** ***** **** *********, but * ** *** **** *** to **** ** *-**.” ** **** playbooks **** **** *******, **** *******, this *******, ***** ** *** ** in *** ***, “***, ** ***** you **** * *** *********** ** education. *** **** ** *** ** recommend ***** ***** ****.”

Successful ****** ****** ****** *********

******'* ********* **** ********** **** **** are ******** ****** ***** ** ********** examples ****** ******, ************ *******-************ ******* ********, * "******* ********" ** ****** but ** *********** ****, **********, *** plumbing ********, *** *** "******* ******* Alpine *** **** *****," ********* ** Cobalt **-*** ********. **-*** ******* ******** in **** ****** ***** ****:

**** ** **** *** ** ** excited ** ** **** **** ****** in *** ***** ***** ** **** Alpine *** ***** ******* ********** ** other ***** ******** **********. **** ** a ***** ******* ** *** ****** portfolio. **** ** * *********** ****, electrical, *** ******** ******** ********. ****’** gotten ***** *** **** *** **** few ***** *** **** ****** ************* good ** ****** *** ******** ***********. We’re ***** ** *** ***** ****** of ******** *** ********** ****** *** training ************** ** ******, *** ** isn’t **** *** ***-**-***-*** **** *****. It’s **** **** ********* ****** *** Alpine *********, *** **’** ******** ******** it.

***** **** ** * *********** ******* business *** **** ********* **** ******, co-CEO ******** **** ******* ***** ****** *****, * ***** ** ************** ********** firm****** ******** ** ****, ** * ********** *******. ** pointed *** **** ****** ** "** engineering ******** ******** **** ***** ********* to ***********," ***** *** ******* *********** with ******.

Target ********** ********: $* -$** ******* ** ****** *******

*********** ******* *** *********** *******, ******'* co-CEO ******* **** **** ***** ** is ********** ** **** ***** *** small *******, ** **** ******** ***** on *** "**** **** ** ******* acquisitions," ************ ***** ******* $* ******* and $** ******* ** ****** *******:

** *** ******** **** ****** *** smaller ************, ********* *** **** **** of ******* ************ **** ****** ***** not [** ********** **]. *** ****** of $*** ******* ** **** $** million ******* **** *********** ** *********. I ***** *** ****** ** $* million ** $** ******* ******* *********** is ***** ***** ***********, ******.

"Mid-Single-Digit" ****** *********

****** **** *** * "***-******-*****" ****** multiple *** * "******* **********, **-*** Hoffman *********, *** **** ********** ** what ******** ***** ********** ** ******'* valuation **************, ********* ******* ****, ********* revenue, ******** *************...***:

********* ******* ** * ****** ** factors – **** ************ *** **** qualitative. ********* ********, ****** ********** *** valued ** ****** ********* **** ******* businesses. **** ********* ** *********** ******* also ********* ********** ** ****** *********. Additionally, ******, ******, *** ****-******** ******** relationships **** ** [********* **] ****** multiples. ***** *** ***** ******* ********** to *** ******* ********* ***********.

* ***-******-***** ****** ******** ** ****** for * ******* **********. ** * business **** ************* ****** ** ****, the ******** *** ***** ******** ** a ***.

Original **********' ***** ****** ******

***** ****** ***** ** **** *** portfolio ***********' ***** ***** *** ***** operations, ** **** *** *********** **** its ******** ********** ** *** **** run ***** **** ** **** *** seeking ********** **** ******* *** ********. Cobalt **** ******* ******** ******* ** lead *** ******** **** **** **** a **** *******. **-*** ******* ****:

** ** *** ********* *** **** that ** *** ****** * ******** and **** ********* *** ******** ***** to ***** ****** *** **** *****. Brian [******* **********' **-******* *** ***] is ***** **** ******* ** ** great ** **** ** ****, *** he ***** ** **** *******. ***in **** *****, ******** ****** *** ******* ** ****** *** ********** *** ** *** ***-**-***. They have had enough. [Emphasis added]

** ***** *****, ** ********* ***** our *** ********* ****** **** *** business ** ******* *** ******** ********* team *** ** **** ** *** knowledge **** **** ******** ****** ****** a ******** ****** **** ********** ******. Even ****** *****’* * ******** *****, that *** ****** *** ***** ***** a ***** *** ******* *********** ** the ********.

***** **** ******** ****** ***** ****** to ******** ** *** * ******** share ** *** ******* ***** ******* the ********, ******'* ********** ** ** own ***% ** *** ********* ********* to ***** ************. ******* *****, **** pointing *** **** **** ********** ** not ********** ** *** *****:

Our ****** ********** ** ** **** ***% ********* to keep things clean and simple. We prefer to avoid complicated transaction structures. That said, we do not want to draw hard lines in the sand and say there is no circumstance under which we will consider a different structure than our typical one. We are open to conversations where it makes sense. [Emphasis Added]

Voice **** ** ******** **********: "**** **** *******"

**** ** *** ****, ********** ********* a ******** ***** ** **** *** or *** ********, *** **** ***** likely **** **** ***** **** ******* to *** ******** ***** ************ *** what **** ****** ** *** *********.***** *******, **-******* *** *** ** ******* Provisions, *** ********** ****** **** ******** acquired, ********* **** ***** ****** ** not *** ******* *** **** *** offered ** ***, ** ***** ****** because ** *** "************" *** **** they **** "*******":

* ** * ******* ************ *** a ************* ***. ** ** **** what * ****; **** ** ** skill ***. * ** *** **** to *** ***** **, [**] ************ it. * *** ******* *****, *** my ******** ******* *** ******* *** a ******, ** ** ******* *******. Everybody ** ********** ******* ****** ** M&A *****. [***** ****] ** **** offers. ** ***** *** **, ***** were ******** ******* ****** ** ******* conversations ********* *** ****.Cobalt *** *** *** **** ******. ** *********** **** ******* ****** ***** **** ******, ** ***** *** ** ***** *** ******. [Emphasis added]

*******,the ************** ******* ****** *** [******] *** *** ************. **** **** *******, and they kept showing up as they said they were going to show up. They did not misrepresent anything that they said, and [we] did not ever get a sense of deception from them. Nothing led me to believe that what they were saying was not at least what they were believing. To date, they have stayed true to their intentions, and I appreciate that. [Emphasis added]

Intend ** "***** ****** *** *** **** ****"

****** ****** **** ****** *** "** long ** ********" ** ******'* ********* team's ****. **-*** ******* ****:

** ****** ** ***** ****** *** the **** **** *** **** ** do ** **** ****** *** ** long ** ** ******** ***. ****** has * ********* ** **** **** businesses *** * **** **** ****, and **’* **** *** ****** ** be *** ** ***** **********.

******* **** **** **** *** "*********" is **** ****** ********** **** ** new, *** **** ** ********** ** recapitalize *** ******** *** **** ** owning **, ***** ** "**** ****'** done ** * *** ** ***** other ******* ********** **********." ***** ****** executives ********* **** *** ****** ** one ** ******'* "******* ********** **********," Alpine's **** **** ** *** *** has **** ********** *****. ****, ***** two *** *** ***** *********** ** what * ****-**** ****** ********* ***** look ****.

** ** **** ******** ** ******'* "long-term" ****, **-*** ******* **** **** that ** ** "**** ********" *** Alpine ** **** ****** *** * "five ** *** ****" ******, *** at *** *** ** **** ******, Hoffman ********* **** ******* ** ******* private ****** ****, ***, ** ********* Alpine ********** *** *** ******** ******** of **** **********.

*******

** * *******, ******'* ***** ********** a *********** ********** ** ** ***** acquiring *********** ***********. **** *******, ** increases *********** **** ******** ****-***********.

*** ****'* ******* **** ********'*********, *** ****** ** **. **********, Everon, *** ****-*********** ********.