Founder **********
******* *** * **** background ** ********, **** of ** **** *******, and **** **** ********* after *** ****** ******** the ******. *** ********** is ********* **** ***********, holding ********** ***** ******** sales *** **********-******* *********. He ***** ** *** this ********** ** **** his *** ******* ******** and ***** *********** **** look ** ********.
DFENDUS ********
*** ******* *** ****** backing ** **** ********* and ******* ** **** integrators ******** ** ******* under ***** ******** ******** after ***** ********, ****** "a ******* *******" ** their ******** *********.
*******'* **** ** ** get *** ******* ************ to * $**** ******* "as **** ** ********", as ** ******** ******* this ***** **** **** up ************* *** **** larger ************.
** ***** ** ****** the **** ** ***** to ******** ** ********** and ******** * ********, Marston *** ********* ** in-house ***** ****. ** stated **** ***** ****** the ******** ********** **** doing ************ *** ****** the ***** **** ** become ********** ** ***** due ********* *** ***** pre/post **** *********. ******* claims **** *** ***** deals ** ** ******* as ** ****.
Typical ********** ******
******* ** ********* ******* at *********** ** *** $1M-$5MCAD ******* *****, ****** will **** ** ********* as ***** ** $*** in *******. **** ****** of *** ** ***, with * ******* ***** around $**,***/**. ** ***** to **** ** ********** an ********** *********** ******. Integrators **** **** ******** software ********* ** ******** their ******** ********** ****** areas **** ******* ********, quoting *** ********* ** other ****-****** ******* *** of ********** ********.
******* ****** **** ******* has * ***** **** allows **** ** ******* integrator ********** ******* **** what ********** ** ***** large ******* ****** ********* might ******. ** ***** this ***** ****** ** these ********** ** ********** option ** **** ***** business **** **** ***** not ********* ****.
********* *** ******* ** acquiring ********-***** ***********, *** has ******* ********* **+ companies, *** ****** **** may ****** **** ** acquisitions ** **** **** businesses **** **** ****** RMR ** *** ********* a **** *********** ******.
Guard ********** ********
** ******** ** ***********, Dfendus ** **** ******* to ******* ***** *********. Here *** *** ** key ** *** ******** being * **** *** for ** ***********, ********** an ******** ** ********** that **** ****-**** ******** contracts *** *********.
Valuations ****
***** ********** *** ******** to **** *******, *********** should ****** * ******* 30x ******** *** ***, plus **** ********** ****** for ******** *** ********* or ***** *** ******.
What ** ****** ****-****
******** ****** *** ******** to **** ** *** 2-3 ***** **** ****, though ** **** ***** this *** ** **********. Marston ****** **** ******** owners *** ****** *** agreement ********** ** ** carried *** ** **** and **** **** ******* will *** ******* ** change *** ***** ***** the **** ** "**** back" ***** ****. ******* payout ****** **** ** acquisition ** *.* *****.
***** *** ******** **** operate ***** *** ******** brand, *** **** ******** management ********* ** *****, Dfendus **** **** ** achieve **** ***** ************ through ****-****** **********, ******* that **** ********-******* ********* may ** ************ ** Dfendus' ********* ******.
Future ******* ******** ********
***** *** ******* **** not **** ** ********* plan *** *** ******** companies ** ******* ****** under *** ******* **** and ********, ******* **** this *** ****** ** the ****** ** ** feels **** ***** ** beneficial *** *** ********** operation.
DFENDUS **** ********
** ******** ***** **** discussed *** * **** term **** ******** *** DFENDUS, ******* *** ******** backing ***** ******** *** company ***** **** ** IPO, ** **** ** a ****** ********/****** ********** or ******* ******** ** some ***** ** *** future.
Compared ** *********** ** **********
*******' ******* ************** ** that **** *** ***** to ******* ******* ***********, often **** ******** **** than **** ***** ** attract ** ********** ** other ****** *********. ** described ** *******, *********** acquired ** ******* ***** also ****** **** **** autonomy **** ***** ******** by **********, ** ******* does *** **** ********* plans ** ****** * national ***** ** ******** strategy *** *** ********** has.
Comments (12)
Jeremy Ellis
The hard part to me is keeping the “key” technicians onboard after a sale like they are targeting. Most often, those people are only one step below the owner in the long term importance category. Once again, it’s all about the RMR.
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Undisclosed #1
Any indication of who the 'equity backing to fund purchases' group is comprised of?
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Undisclosed
These roll-up stunts seem to have plenty of appetite for unstellar integrators. They talk investorBabble and RMR and stuff but there's generally not any sign the new entity will be any more competent at handling modern problems. A nationwide integrator brand that sucks just like the local firm used to suck does not add value for the customer. (remember the customer? you're living on their money....)
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Undisclosed Integrator #2
Integrators that have deployed software platforms to optimize their business operations around areas like vehicle tracking, quoting and invoicing or other back-office systems are of particular interest.
Yes, that indicates they are well organized. But if part of the goal is to have common platforms all the "branches" use to leverage the value, then it will become a question of if a prospective acquisition is already using the same platform as the conglomerate.
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Lee Jones
12/21/17 08:31pm
(Comments from an outside observer)
Another subtle, but big difference, between the business models of Convergint and Dfendus …. doing business without on-demand police response. Major Canadian communities have already adopted full disclosure VR-Verified Response, and private security has responded accordingly with compatible business models. Good example is AlarmForce (recently sold to Canadian telco). Law enforcement in the US is moving fast in the same direction, but alarm companies are moving slowly with millions of their imbedded base… could be a decade behind, with lots of in-compatible business models. We believe Convergint will be looking at some clumsy “integration” issues.
Source: Lee Jones; Support Services Group; leessg@att.net
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Michael Silva
12/21/17 10:09pm
The value in most smaller integration companies is their people. Period.
In most cases, the best people will leave after the company after an acquisition occurs, if not immediately, then within the next year or two. The acquirer is then left with a shell of a business where most of the remaining employees are just hanging on for a paycheck and could care less about the company or its customers.
I have seen this play out time and time again over the last 30 years with very few exceptions.
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Chad Rohde
I've never heard of Marston or Dfendus. But this statement alone would keep me from trusting them. But I have stereotyped wrong plenty of times.
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John Honovich
Update: DFENDUS notified us that they have acquired Actron Security Systems of Woodbridge, Ontario.
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