Pavion Aims To Be Top 3 Largest Global Security Integrator (CEO Interview)
A brand that did not even exist a year ago aims to be among or larger than the world's largest security integrators, including ADT Commercial, Convergint, JCI, Siemens, Securitas, etc.
The company is run by Joseph Oliveri, who spent 30 years at JCI working his way up from integrator salesperson to security division leader.
We spoke with Oliveri about what he learned working at JCI, how they approach building Pavion, its plans, and potential challenges.
Executive *******
****** ** ******* *** ** *** world's ******* ******** ***********, **** ****** revenue ********* ** ** ***** ** $1 ******* **** ****. ***** *** company ******* **** * ******** ********** (CTSI), ** ** *********** ****** ** its ** **** ****** (**** ***** ********) *** *** *** ******* ** become *** ** *** ******* (***, for ****, ****) ******** ***********.
** *** *********, ******* ********** ******* growth *** ******** ************, *********** *** its ** **** *** ********* * longer-term **** ** ***** * ******* company. *** **** **** ******* ** critical, ** ******* *********** ***** ******* in *********** ********, ***** ******* ***** to ***** ***** *** ***** ******* of ********** ** ** ********** ** JCI.
Oliveri's ********** ** ***
******* ******* *** ****** ** ***** at ******* ******** (***) ** *** 1990s *** ***** *** ****/****' ***** American ******** ******** *** * *** years:
* ******* *** ** ***** ** Johnson ********. ** *** ****. **** then, ** ***, ****. * ******** I ****** **** ** ***** *** and *********, *** **** ** ***** the *******. ** *'* ***** *** of ******. * ***** *** *** accounts. * *** ** ** **** for ****** **** *** *. * learned *** ********* ***** ****; *** hard ***** ****; *** *** ** do *****. * ****-****** ******.
* *** **** *** **** ***** and **** * **** ** ** be * ****** *******, *** **** regional *******. ** ********** ** ** running ****'* *** ******* ********' ***** American ******** ******** *** ****** ******** for **** *****.
***** * ******-**** ****** ** ********* and *****, ******* **** ** *** product **** ** *** ********:
** ***** ****** *** **** ***** in *** *****; * ****** ** learn **** ********* ********** *** ********* skills, ** * ***** **** ** the ******** ********. * *** ********** ******* ********, *** ******* ********** ******* *********** * ****** **** * **** and **** * *** *** **** business *** * ****** ** *****.
******* **** **** **** *** ******* experience ** *** ******* *** ** run *** ******** **** * ******** approach:
**** * **** ** *** ** because ** *** *** ****** *'** done, * **** * ****** ****-******** approach **** *** **** *** ******* side, *** ************* ****, ** ********** and *****. * **** ** ** like * **** ******* *******, *** I ***** *** **** * ** have * ***** **** ***** **. I ***** **** ****** *** ***** and *** $* ** ****** **** a **** **** **** ****-******* *********** efficiencies.
***********, ******* **** ******* ***** *** business ****** ******* *** *** ****:
** **, ***** ** ****** **** [is] ********. ****** ******* **.
Starting **** ****
*** ******* ****** ******** ***** ******** ******** ****, * ********-***** ***** **********, ** 2020. *** ** **** *** ***** to ***** * ***** ********** ******* acquisitions, *** ** ******* ******* ** to **** **** ********** ** ****. Wind ***** ******** **** ******* **** and ******* ***** *********** ** ****** to****** ** ****.
******* **** **** **** ****** ******* with **** **** $*** ******* ** revenue ** ****, *** ** ** on ***** ** **** ~$*** ******* in ******* **** ****.
PE **** **** ***** ********
******* ******** ** *** ********** **** Wind ***** ********:
****'* ***** ***** **** ***** ** that ** *****'* ******* ** ** the ********. ****'* *** **** ***** us ** *** *** ******* *** business. ****'** *** *******. **** **** care ** *** ****. *** ***** point ** **** **** ** ***** sandbox. ** ** **** ** ** well, *** ** ***'* *** ** each *****'* ***. ** **** ****** well ********. **** *** ** ******* private ****** ****. **** *** **** far ******** ******** **** * ******* they **** ********** ********.
19 *********** ********
**** ***** ******** *** ******** ** integrators *** ** ******* **** ****** Pavion. ** ****** **** ** *** order ** ***** ************ *****:
- ******** *********, ********
- ******** ******** ** **&*, **************, ********
- ***** **** *******, ***., **********, *** ******
- *** ********** *******, ***., *******, *** ****
- *** ********** ******, ***., *****, ************
- **** ***** ********, *** / ******, LLC, *******, *******
- ********* *****, ***, ***** ******, *** ****
- ****** ***********, ***.**** **********, ***** ********
- ********** ******** *********, ***, *******, ********
- *******, ***., ********, *** ****
- ***** ******* ***********, ***., ***'* ******, ********
- ******* **********, **********, ****
- ******** ***********, ***., *** ****, **********
- ******** ******, *******, *************
- ******* **** & ********** *******, *********, New ****
- ******* ******** *********, ***., *******, **********
- *&* ********** *******, ***., **********, *************
- ***** ******** ******** *********, ********, ******
- ***, *** ****, **********
**** ***** ***** *** *** *** acquisitions, **** ***** ********* ***** ****** the **:
****** **** ** *** **+ ******* in *** ** *** **+ ******** locations *** **** **** **** ** plans ** ****** *** ******* ** the ******* / ****** ** *** US *** *** **** ***** *********:
** **** ** ******** ** **** in *** *********. ** **** **** density ** *** ****** ** *** country. ** **** ** ******** ********* our ****** *********. ** **** ** add ********. ** ** **** ** offices, *** ** **** **** *****.
** **** ********* ********** *** ***** Midwest, *** **** * **** **** scale, ** * **** * ***'* want ** **** **** **** ***********; I **** ** **** * *** footprint, * $** *******-**** ********. ****'* what * **** ** ******** ** build.
Acquisition *******
****** ** ********** ** ******* ***********, with *** *** *********** ** **** on *** ****'* ********* ** ******* potential *******:
* *** ** *****, ************* *** in ******** *********. ** **** ** the **** ** ****, *** ** move ***** **** ******* ******* ************.
*** ****** ***** * ***** *** is * ********** ******** *****. * don't ******* ** **** ******* *************. I **** ********** ** ******. * like ** ** ** *** ****** and ** **** ** ***: "***, what's ***** ** ****? *** ** we ** ** *** ** ** grow?" ******** *** ******** **, *** not **** ** *** ** ****** in * **** ** *** ** answer. * **** ** ** **** to **** *** ****** ***'* *********** for **** ********.
** *** ** *** ***** *** screening *********, ******* ******** **** ** is **** ********** ** ********** **** value ******** **********, *** ******* ** change *** ****, *** **** * clear ********** *****:
*** ***** *** ** ********* *** customer **********. **** *** **** ** be ********* ** ***** ********.
*** ****** *****, * ***** *** that's *********, ** **** ****** ********** that **** **** **** ** ****** and ****. **** ** **** ** a *** ** *** ************ ** they're ***** ******-***** **********. **** ******** a ******* ****** ** *******, *** the ****** *** ***** **** **** level ** *******. *****'* ******* ***** with ****** **** ** ********, *** they ***'* **** **** ****** *******.
[** **** **] **** ****** **** are *********, **** *** ******* ** be **** ** ******.
** ****, *** ***** ** ** willing ** ****** *** **** ** more ****, ******* *********:
*** *** ** **** ** *** to **** **% * ****. * lot ** ** ** ******** **** and ******* **** **** ** ********** that, "***, ***'** ***** **** ** invest, *** * ***'* **** ** say **** ** *********** ****, *** maybe ** ** * ****** *********** than *** *** ******."
******* **** ** ** **** ** example ** *** ****** ******* * portfolio *******'* ******* *** ****** ** grow:
*** ******** **** *** ******,***, *** ********, ****** * ******* customer **** *** ** *** ******* in **** ****** ***, ***** ** three ******. ** **** **, ** doesn't **** ** ** ***** ** three, ** ***** ** ***** ** seven. *** *** ** * *** things ***********. **** *** ** * sudden ******* ******* ** * ****** good ****.
** **** ********* ** ********* *** understands *** ****** ******* ****:
* ******* ******* ** **** ***** ******, *** **** *** ******** ******** now; ** [**** ** ***]********* *****. ** *********** **** ***** ***** and **'* ****** ***** ** **** with.
****** ** ******* ** ********** **** forward-looking **********, ******* ****:
** *** * ************ **** ** place ** **** **** ** *********** it's ***** ****** *** **** ** gets *********** **** ********** *** ********* growth *** **** ********.
***** *******, ******-***** ********** **** *** not ******* *** *** ***** *** Oliveri, ** **** **** **** *** still ***** *** ** **** **** cultivated * ********** ****** *** ***** how ** *** *** ********:
***** *** ***** **** *******'* **** their *** *****. **'* ******* ** retire. ****'** *** **, **** **** no ****. **** * **** ** see ** **** **** ** ******** is ******* *** *** ******* * general ******* ** **** ****, *** understands *** ********, *** *********** *** people, *** *** **** *** ***. We've **** **** ********** **** ****.
******* **** **** ****** ***** ****** to *** ** ** *** **** if **** *** * *** **** to ****** ************ **********:
** *** **** *** *** *****, you *** ** **** *** ****, because **'* **** ****** ** **** the ****, **** ** *** * bad ****.
Aims / ********* - *** * *** $* ******* *******
****** ** ****** ** ****** *** of *** *** * ******** ***********, emphasizing **** **** **** ** ** the ****:
** ** **** ** ** **** we **** ** **, ** **** to ** *** *** * ***********. I ***'* **** [** **] *** biggest, *** * **** ** ** the ****.
********* *** ** *** "****" ** hard ***** ** ******* ** *** criteria ********, ****** ******* ** *******.
*** **** ** ** ** $* billion ** ******* *** **** ** 10% *********** (********* *&*), ******* **** IPVM:
* ***** ***** ** **** ** be ** * ***** ** ***** 2 *******, ** ** **** * want ** **.
*** ****** ** ** **** **%. Obviously, ** *********, ** *** *** grow **%, *** ** *******, ** will **** **% ***********, *** **** M&A ** *** ** ****.
** ****** ******* $* *******, ** would ****** ** ** *** *** 3. *** * ***** ** *****, Convergint ****** ~$*.* ******* ****** *******, and *** ********** ****** ********** ****** ~$1.2 ******* ****** *******.
****, ******* ****** ******** ******* *** environment *** ***** ** ** "** employer ** ******," ** **** ****. The **** **** **** ** ******'* new ***** *** *********** ******* **** from ********* ********* **** *** ******* has ************ ****** * ******** ********** among ********* *** *** ********* *********, Oliveri ****:
**% ** *** *** ***** *** employee *********. *** ***'* *** **** if *** **** * **** ***********. And *** ***** ***** ** ***** a *** ** *** *&* ***** are ********* ** **** **** ********* that **'** ******. **'** ******* **** fairly *** *** * ****** **** process.
******* **** ******* *** *** ****** is *** ** ** ****** * more ****** *******:
** **** ** ******* *** ********** globally. ** ******** ** ****** *** global *********. ****'* * *** **** of **** ** **. ** **** to **** **** ***** ****** *********. And ** **** ** *** ***** customers *** ***** ************.
** ****** *** ** *** ******* integrators, ****** **** ****** ** ***** larger *********. ******* ********* ******'* ******* in ******** *** ********** ** ******* larger **** ********* ** **********:
** **** ** ***** *** ** serve *******. ** **** ** ******** to **** *** *** **** *********.
****** ** *** * ********** *********, which ** **** ***, ** *** to **** **** **** * *** of *** *** **** ********* ******* we ******'* ******* ****. *** **** thing * ****** ** ** ***, "You **** ****, ** **** ****** people ** *** ** ** *** get *** **** *** **** **** down."
*** **** ** **** **** *********. We *** ** ***** ***** ****** tech ********* *** **** ** **** and ***** **** **** *** ********** and ** * ****** **** *** for ****. **'* ***** *** ***********. Take ** *** **** **** *** know *** *** ******* ******** *** don't ****-*******. ***** *******, **** *******, not *** ***** *** ******.
Balancing ****** *** *******
***** *********** ***** ******** ** ******* the ******* ** ********** ******* ********** for ***** ********* **** ********** ****** and ******** ************. ******* ********** ** how ** ****** ******* ******-***** ********* are ***** **** *****-**** *********** ******** than ****** *********:
**** ** ***** * ***** ******* equity ****** * ****** *******. * remember **** * *** ** ******** school, **** ****** ** *** ****-**** focus, *** ***** ******** *****, **** don't ********* **** * ***** * month, ******* ** *******, **** ** year [***********]. ****'** ******* ** ** and ** ***** ***.
**** *** **** ** ****** *********, they *** ******* ** ***** ********* numbers. ** **** [***'*] *** ***** quarterly ******, *** ***** ***** **** go ****.
** **** ** ******* ** *** private ****** ****** ********* **** ****** to *********** *** **** *** ******* investing *** ********** ** *******. **** gives ****** ********* ** ***** ** mid- ** ****-**** ******, ******* ****:
*** **** * ***'* **** ******** to *** ******* ***** *** **** the ********. *** ** * ******* a **** *******, *****, **'** *** judged ********* *** *** *******, ** ends, *** ** ***** ***** ****** 10 ***** ****, ****'* ***** ** generate $** ******* ** ******* ** a **** **** ***, *** *'* gonna **** ** ****** ***** ***** reps *** * ****. *** ******* equity ******* ****'** ******* **, **** the ******** ** ***** ** **** like ** ***** ** **** ***** when **'** ***** ** **** ** refinance. ** *** **** * ****, I ***'* **** ** *** ****-**** focus, [***] ******-**** *****, ***** * think **** *** **** ** *** business ******-****, ** ****** * ****** outcome ******* ** ****** *** ** day.
**** ***** ****, ******* ****** **** he ********* ********* **** *********** ****** for ******:
**** * **** ****, * ******** struggled **** **** ********-******, ******* * grew ** ** * ****** *******. I ****** *** ** **** ** month *** ** ******* ******* ** job *** ** *** ****. * had ** ** **.
** *****,I *** ******** ** ****, * ** * *********** ********* *** ** *** **** ******* **** *** ***** ** ** * **** ** *** *&*. What does my training Tell me? I can't take a drag on the P&L until the revenues are coming and the good stuff happening, I can't afford that. So I was hesitant. [emphasis added]
** **** ****** *** *** ** Pavion's ***** ******* ******* *** ******** resources ** **** *******:
*** ** *** ***** ******* *** down **** **. ** *** ****: "Joe, ****, *** **** *** ***** to ** ****** **** *********, ***'** going ** ** *********** ****."
** *** ****: "***, * *** your *********. * *** **** ** one *****," ** ****, "*** *** board ** ***** ** ******* ***. Go *** *** ***** ********* ***** of *** *********** ********. **** *** you're ***** **** **** **** ******* if *** **** **** ****'** ****, it's *** ****."
******* ***** **** ** ********** **** the *********** ********** ***** ** ** acquisition ******* *** ******* *********:
** ** ******** ** * ***** of ***** **** *** ********, *** the ******** ********, *** ********** *****. So **** *** *********** *******, ** were ***** ** ** ***** *****, I *** **** ************. * *** hesitant ** ** ****.
** ***** ** ***** ****, ** believe ******'* ** ******* **** ******* longer-term *********** *** ********* *****-**** *******. The **** *********** ******* ** ***** is *** **** ************** ******* **** time *** **** *** *** **** Pavion **** ** **** ***** ** backer ******* **** ** ********* ******* (as ** ****** **** ***** ****** competitors).
Competing ******* **** ***********
***** ****** **** ** ****** *** of *** *** * ***********, ** must ******* ******* ********** **** ** ADT, **********, *** ***. ******* ***** about ******'* ******** ** ******* **** the ***** ******* ** *** ***** while ******* **********:
*** ***** *** ** ***** ** to ** *********** ***** **** ******** and *** *** **** ** ***.
**** ** ******* ***, *** ****** was ** ***** * ****** ********** that ***** ******* ******* *** **** integrators **** ** ** ********, **** Johnson ********, *******, *** **********, *** do ** ** * ****** ***.
******* **** ** ******* *** ******** and ********** ** *** ** ******:
**** *** ** ********* **** * big *******, *** **** *** *** bad, *** **** *** ****, *** try ** ***** *** *** ******. I **** ** **** **** * try ** **** *** **** *** minimize **** ** *** ****** **** are ***, **** ******* ************* **** slow *** **** *** *** ***'* react ** ********* **** ******. *** know, **** ****** *** **** ********** focused **** ********** ******* ** *********.
*** ********* ****** *** ******* ***** large ******* ** *** *********** *** ability ** ********* ********* *** *********, Oliveri ****:
** *** ** ******.
******[**** ***** ***********] **** ********** ** be ** * ***.
*** ******** ***** ** [** ** a ******* ***] **** * ******. [Yes,] *** **** ** **** **** it's ********** *** ******, *** ** can ** ******** *** ********* *** approach *** **** ********. ** ***'* have ** *** ** [***] ** fit ******* ** **** ***. ****'* how ** *** ********.
Product ********* ********
***** *********** ******* ******* ****, ** not ***, ******** *****, ******* ******* integrators ******* **** **** * *** specific ******** *** ** ******* ******* bandwidth. ******* **** **** **** ****** will ********* "**** ********," *** ** now *** *** *** ******* ********** team ** *** ****:
* ***'* **** ** *** ** do *** ******** ******* ***** ** a ***** ** **** **'** **, but ** **** ********* **** ********. With **** ****, ** *** **** invested ** *** *** ******* ********** group. ** *** *** ******** ** make **** **** **** **** *** right ************, **** ****'** * **** product, *** **** ****'** * **** fit **** **.
******* ***** **** **** **** **** evaluate **** ******** ****** **** *** sell:
**'** **** ******** ******* ******** ** don't **** ** ****. ** **** don't **** **** ******* **** [**] not [****] *** ******* ** *** service **** ** ****.
**** ********* ****, ** **** *** in *** *** **** ***** **** we **** ************. **** ** ***** product ********** ***** **. * ***'* want ****** ******* * *** **** we're **** ***** ** ** **** in *** *****, *** **'** *** trained ** **. ****'* ****'* * recipe *** *******.
****** ******** ** ***** **** **** the ***** ** *** ******** **** lead **** ** ***** *** *******.
****** *** ******* ******** ****** *** shared ******** ***** ****** ****** ******** because **** **** ** "** **********," Oliveri ****:
*'** **** **** ****** *** *************** in *** ****. *** ****** **** found *** **** **** *** ** do ********** ***** **** *** *********. Every ****** *******; ***** ****** ******, they *** ** **** ****, *** it **** ***** ** *** **********, and **** *** ** ** *** much.
****** ******** *** ********** *** **** for **********, ******* ****:
*** ******** **** *** **** *** integration *** **** *** ******* *** tools ** *** "******* ****** *******." We ** *** **** *** ****** and **** **** ** ******* ** to *** *** *****.
**'** ********* **** ** **** ** we **. ** ***'* **** **** big ******* **** ** **** ** move *** *** ** ******. ** get *** *********** ** ***** **** scratch. **'* *********. ** ******* **** in ****, *** *** ******** *** already ***** ** * ******* *** and ***** ** ********* ******* *******, it's * ********* ******** *** ****** than **** ******** *** ******** ** from *******.
Recurring ******* *****
********* ******* ** ********** *** **** the *********** *** *** *********, ******* said:
********* ******* ** *** **** ******** thing *** ****. ***** *****, ** every ******** ** ************ *******, ***** to **** ** *** ***** ********** with **. [***** ***] * ******* [for ****], *** *** ** *** also *** *** ********.
**** **** ** * ***** ****** that *** **** * ******* ******* for, *** *** *** *** ****** it, ** ****'* **********? [*****] *** camera *** ******* ** *** ***** direction, ** ** ****'* *********, ** there *** **** *****.
*** ***********, *** ********* ******* ***** their ******** **** ******, *****, *** consistent, ******* ****:
**** *********** ******* ** **** ********* for **** **********. *** **** * think ***** *********** *******, **** *** look ** ********** **** *******, **** have ****** **** *********** *******, ***** profile ** **** ****** *** ***** and **********. **** *** ***'* **** that ********* *******. *** **** *** spikes ** ***** *******. **'* ********* and ********, *** **** ********** ** have **** *********** *******.
******* ****** ** ****** ********* ******* is **** ********** ***** ******* **** frequently ********, ******* **** ****:
* ***** ***** ***** *** ******** is ********** ** ********. *** ******* cycles *** ****** *********. ** ** a *** *****, ***** ****** *** using *** ************ **** *** ******* to *** ***** ********** *** **** business *********. *** ***** ***** ** with *** ********** ********, ******* ****** have ****** * *** *******, ***** is ****** **** *** *** ********.
***** ********* ******* ** ******* * minority ** **** ***** ******** ***********' revenue, ******* **** ** ********* *** continual, ******** ***** ******** ** **** of *** ********* ******* ** ****:
*** **** ********* ******* **** * customer ***** *** **** ** ***** projects. ****'* **** ******** **** ****. It's *** ******* ** *******. **'* not **** *** ********** *** *** maintenance. **** *** **** * ******** that's ********** ***** ********, ***'** ******* these ***** ******** **** *********** **** to ** ** *********** *******. *** nonrecurring ******* [* ****** *****] *** a ***-**** $* ******* ************ *******.
Managed ********
****** ** **** ******** * **/* IT-managed ******* ********** ******* ********. *** acquisition ********** **** *** *** ********* ** this ******. ******* ******** ** ******'* functions:
*** ***** ***** **** * ***** I **** ** **** ***** ** our ****** **-******* ********, ***** ** work **** *** ********* ** **** sure **** **** ***'* **** *** vulnerabilities ** ***** *******.
***** ******** **** ******* **** ** open *****. ****'** ** *** **** current ***. ***** *** ** ************* issues. ** **********, *** ****, ***** to *** *****, ********* **** ******* to ********* ***** *** *** **** them **** ***** ******* ************** *** ensure **** ***** ******* *** ********* [is *********].
******* **** **** ****-*** *********** ******* IT-managed ******* ********** ********, *** ****** has **** ********** ** ****:
**** ** ***** ****, * **** how ********* ** *** *** *** the *********** *** *********. * ****** to **** **** **** ** *** that **********. *** * ******** ** invest ** ****** ** *** **** scale ** **. **'* * ****** nice ********. ********** *** *** *** answer *** *** *** *** ********** answer. **** ********* **** ****, ** I ***'* *** * ** ****** that * *** ****, *** * think ***'** ****** * *** **** of *** ****-*** *********** ****** **** capability.
****** ** *** ******** *** *** software *** ***** *** ***** ******** to ******* ******* ********** ******** ** its *********, ******* ********* ** ****.
Exit *****
****** ****** ****** **********, ******'* *** did *** ****** * ******** **** plan:
*** *** ******* ****** ***** ** it ** ** **** ** *****'* more ***** ** ** ***, **** want ** **** **. ** **** market * **** ***? ** ***** a **** **** ** **** ** a *** **** ** ****?
** **** ** ** ******** ** execute *** ******* *** ******* *** Wind *****, **** **** **** ** be **** ** *** ********.
*** **** ****** **** ** *********** as ***** *** ******* ** ** at ***** ***** **** *****, **-***** integrators (******-***** ******* *** **********, **********, *** ******) **** **** likely **** **** **** ** **** in *** **** ** *****.
*******
** ** ****** ********** **** ****** will ****** *** ** *** *****'* largest ******** ***********, *** *** ******** question ** *** **** **** ******* getting *****. ***** ***** ******* ***** size *** *********** *****, ***** ** the *** * ** **** *** top * ******* *********** ** ******. What ** *********** ** *** **** can ******* ******** ************ *** ***** the ******** *********** ** ****** ****-***********. The ******* ******** **** *** ********** of *** ***, ****** **** ***, but ** ******* ** ** **** how **** **** ******* ** **** scale.
****** **** * ******* ******** *** Pavion/Oliveri…“*****-**-&- ****”.***** ** ** *** * ******* infrastructure …. **** *** *** ****** to ******** …. **** ** *** pieces.
***, * **** ** ********* ****:
**** **** ******* ** *** ********** to ** *** *** ***'* **** execs ***** *********** **** (** ******, it's ****** *** ******* ** ** so ***** *** ******* ********).
**** *** **** ** **** ********* that **** "*******" *** ********* (** least ** *** ********* ******), **** cutting ** ************** ** **** *******, or * **** *******, **'* ***** the ******* ** ****** ***** **** profit (*.*. *&*) *********.