Industry Vet Buying Integrators For New Conglomerate (DFENDUS)

By: Michael Budalich, Published on Dec 21, 2017

Industry veteran Dan Marston has started a new company, DFENDUS, with the specific goal of buying up integrators to form an operating conglomerate.

IPVM spoke with Marston to understand his strategy, the kinds of integrators he is after, and plans to expand beyond Canada, where the company is based.

In this report we outline Dfendus' plan, and how their approach compares to Convergint's integrator buying spree.

******** ********** ********** ******* * *** company,*******, **** *** ******** goal ** ****** ** integrators ** **** ** operating ************.

**** ***** **** ******* to ********** *** ********, the ***** ** *********** he ** *****, *** plans ** ****** ****** Canada, ***** *** ******* is *****.

** **** ****** ** outline *******' ****, *** how ***** ******** ******** to**********'* ********** ****** *****.

[***************]

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

12/21/17 03:35pm

*** **** **** ** me ** ******* *** “key” *********** ******* ***** a **** **** **** are *********. **** *****, those ****** *** **** one **** ***** *** owner ** *** **** term ********** ********. **** again, **’* *** ***** the ***.

Undisclosed #1

12/21/17 05:32pm

"*** ******* *** ****** backing ** **** ********* and ******* ** **** integrators ******** ** ******* under ***** ******** ******** after ***** ********, ****** "a ******* *******" ** their ******** *********."

*** ********** ** *** the '****** ******* ** fund *********' ***** ** comprised **?

Rodney Thayer

12/21/17 06:26pm

***** ****-** ****** **** to **** ****** ** appetite *** ********* ***********. They **** ************** *** RMR *** ***** *** there's ********* *** *** sign *** *** ****** will ** *** **** competent ** ******** ****** problems. * ********** ********** brand **** ***** **** like *** ***** **** used ** **** **** not *** ***** *** the ********. (******** *** customer? ***'** ****** ** their *****....)

Undisclosed Integrator #2

12/21/17 06:30pm

*********** **** **** ******** software ********* ** ******** their ******** ********** ****** areas **** ******* ********, quoting *** ********* ** other ****-****** ******* *** of ********** ********.

***, **** ********* **** are **** *********. *** if **** ** *** goal ** ** **** common ********* *** *** "branches" *** ** ******** the *****, **** ** will ****** * ******** of ** * *********** acquisition ** ******* ***** the **** ******** ** the ************.

Lee Jones

Support Services Group | 12/21/17 08:31pm

(******** **** ** ******* observer)

******* ******, *** *** difference, ******* *** ******** models ** ********** *** Dfendus ….***** ******** ******* **-****** police ********. ***** ******** *********** have ******* ******* **** disclosure **-******** ********, *** private ******** *** ********* accordingly **** ********** ******** models. **** ******* ** AlarmForce (******** **** ** Canadian *****). *** *********** in *** ** ** moving **** ** *** same *********, *** ***** companies *** ****** ****** with ******** ** ***** imbedded ****… ***** ** a ****** ******, **** lots ** **-********** ******** models. ** ******* ********** will ** ******* ** some ****** “***********” ******.

******: *** *****; ******* Services *****; ******@***.***

Avatar

Michael Silva

Silva Consultants | 12/21/17 10:09pm

*** ***** ** **** smaller *********** ********* ** their ******. ******.

** **** *****, *** best ****** **** ***** after *** ******* ***** an *********** ******, ** not ***********, **** ****** the **** **** ** two. *** ******** ** then **** **** * shell ** * ******** where **** ** *** remaining ********* *** **** hanging ** *** * paycheck *** ***** **** less ***** *** ******* or *** *********.

* **** **** **** play *** **** *** time ***** **** *** last ** ***** **** very *** **********.

Chad Rohde

In reply to Michael Silva | 12/22/17 12:12am

* *****. ******** ***** to ***% ** *** time. *** *** **** different ******* ** ***** acquisitions. * ** ****** amazed **** * **** of *** ************ **** Charter ****** **** ******. And ***'* ******* *** amount ** ********* ******** it ****. * ***'* usually **** **** ***** any ********* **** **** because **** *** *** big ** ******* **** customer *******. *** * will *** **** *** the *********** ***** ***** time *** ***** ***** attempt **** ****.

Chad Rohde

12/22/17 12:01am

******* ****** **** ******** owners *** ****** *** agreement ********** ** ** carried *** ** **** and **** **** ******* will *** ******* ** change *** ***** ***** the **** ** "**** back" ***** ****.

*'** ***** ***** ** Marston ** *******. *** this ********* ***** ***** keep ** **** ******** them. *** * **** stereotyped ***** ****** ** times.

Avatar

Brian Karas

IPVM | In reply to Chad Rohde | 12/22/17 12:13am

** *** ********* ** cases ***** *********** **** to ** ********* **** a ********* *** *** agreement **** ***** **** "We **** *** $*, provided *** ******** ***** growth *********** ** ** least *% *** *** next *** *****". ** some ** ***** ***** "X" ** *** *********, or ***** ******* ******* that ****** *** *** selling ***** ***** ** with **** **** *** agreed **** ******. *******/******* are ****** "** ** agree ** *** $*, you **** *** $*".

Chad Rohde

In reply to Brian Karas | 12/22/17 01:18am

* *** ****** **** of **** ** ***** and ********** **** **************. I **** ***'* **** the **** ** ********* yourself ****** *** ********** for ********* **** ****** be ** ******** ****.

*'* ******** *** ********** it *******, *** ** too ******** ******** * can ******* ** *** when ******** ****** *** by ******:

"** ** ********** ****** with ***, * .........."

**

"*'* *** ***** ***, I ....."

***** ******** *******'* **** to ** ******. ***** into * ******** **** you ***** ** *** contract ********** ** *** outcome. *** ***** ******* telling ** **** *****'* reassure **. ** ***** me ***** **** *** contract ** ********* *** at *** *** ** the *** **** **** the ***** ** *** or ***.

**** * ****, **** are ******** **** **** people. * **** ** over ***** ****** ***** like ****. ** * was ****** **** ************ with ** ****, *** is ***** *** **** she ******* ** *** says **** ******* ** me. :)

Jeremy Ellis

In reply to Chad Rohde | 12/22/17 04:53am

*** ******** ** * common ***** **** ****** a *******. *** **** is ** ***** ** a *** - *** RMR **** *****, **** (In *** ***** ** one ****** ********* ******** person * ***** ****) you ***** **** *** tree ** **** ** you *** ***** *** deal ******. *** ******** all ** *** ***-******, late ******, *** ******* Accounting **** **** ******* from *** "****" ******** that *** ***** *** 30x - *** *********** price. ** *** ***, you *** ** ******* up *** **** ******** for ******* ** *** dollar *** *** ****** top *****. *** *** Clawback. *** *** ******** is ******.

John Honovich

IPVM | 06/14/18 05:45pm

******: ******* ******** ** that **** **** ************** ******** ********* **********, *******.

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