Security101 Acquired By PE Firm, Aims To Triple In 5 Years
Security101's franchising model was viewed skeptically by many in the industry but the company has now been acquired by a private equity firm whose "partnership" will help triple Security101's revenue in the next 5 years, the company's CEO Steve Crespo told IPVM.
Inside this note, we share feedback from Security101's CEO and analyze the future of the company and its ability to compete and take market share from incumbent mega-integrators such as ADT Commercial, Convergint, JCI / Tyco IS, Securitas, etc.
Security101 ********
*********** *** ******* ** **** *** now *** ** *********, ************* *** employees, *** **** ******* ~**% ** 2021 *** *% ** ****, *** company ***** ****.
** ******** ****** ******* ** *** $100 ** $*** ******* ****** *****, though *** ******* ******** ** ******** revenue. *** ******** ** ***** ** employee ***** (~***) *** *** ********** of $***,*** ** $***,*** ** ******* per ********.
*********** **** ** ******* ******** ** national ***** ******* ********* ***** ******** integrators *** **** ** **** ** able ** **** **** ***** **** those ********* **** **** *********** / partnership.
*** *******'* *** ******* *********, ***** ** ******** ***********, *** President ********** *** *******, **** ** ********* Rand ** ****.
****** **** ** ******* **** *** sale ** ********* **** *** ********** and *********** ** * ******** ********** being ******** *** ************ **** * large *******.
Large ******* / ***** *********
*** ****** ** *** *** *********** versus ***, **********, ** **. ** that **** **** ** ***** *** long-term **** ** *** ********** *********** model ***** *** ******** ** **** mega-integrators ******* **** **** ** ********** in ******* ********* ***** ** ***** their *** ***** *** ***********.
***********'* *** ********** ** **** *** benefit ** ****** * ***** ******* but ********* ***** ********* **** *** Security101 *****. *** *******, *********** *** ~55 ********* ** ********* (********* ********** and * ******** ******** ***** *****) that *********** *** ***** ********* ****** who ****** ********* ** ***** ***** locations *** ********** ** ***** ***** customers.
****** ********** **** "**** ***** *** problems **** ****** *********, ******** ****** start **** ***** ********" *** **** "If *** *** ***** ** ******* a *******, **** *** *** *********? Acquiring *** ****. *** **** *******, but ***** ******* **** ***** **** the ****", ****** **** ** "**** a *** ** ************, *** **** key *-* ****** ***** *** *** business ** ** *******."
** ***** **** **** ** * strategic ******* **** *********** *********** *******. That *****, ** **** *** ******* Security101 ******* ****** ** **** *** well ********** ********** *** *****. **** is ********* ** **** ******** ********* and *** ***** **** *****, ****** comment ** ******* **.
Tripling ** * *****
*********** **** ** **** **** ** triple ******* ** * *****, ***** is ~**% ****. ***** **** ** certainly ************* ***** ******** *******, ** is ********* ****** *** ***** ** possibility, ********** ***** *** ******* ** a ******* ****** ****.
** ******** **** ***** ****** *********** to ** ************* * ****-******* ** annual ******* ** * *****. **** would **** **** *** ****** **** regional ******* ****** ***** *** ** large ** *** ********** (~$* *******), Convergint (~$*.* *******), ***. ***.
Acquisitions *** ***********
***** *** *******'* **** ***** *** been *********** *** *** ******* **** it ***** ** ******** ** ****** franchises ** **** ** ******* ******** integrators. ***** ** * *** ** their ******* *************** ** ***** *******:
****** *********** ** **-**** *********, *** company ***** *** ************* ********* ********* to ****** ** *** **** *** years.
******** *** **** **** ********** *** protected ****** *********** *** **** ***** not ** **** ******** ******, ****** that **** **** ********* ***** ~**% of *** ** **** ***** ********* and *** ******* ** ******* ********* with ** ********.
************ *** **** ******** *** ******** Security101 ********* *********, **** *********** ********** this ** ** **** ******** *** local ********* ****** **** *** ******* to ******. ********* ****** *** **** to *********** *********** ** ****, ****** they ****** **** ** ******, **** as ***, **********, ***.
National ******** *****
*** *********** ******* **** ******** ***** franchise ****** ** * ******** ******** group **** ******* ***** ************* **** geographically ******* ***** **** ***** *********** would ** ******** ** ***. *********** says **** ****** *** *** **** projects **** *** ***** *********** **** benefiting **** ******** **** **** ** various *******.
*******
*****, ** **** *** ********* ******* Security101 ****** *** ** **** * strong ****** ** ****. *********, ******, this **** ***** **** ***** ** more ******** ******** *** *********** ****** for *** ****-********** *****. **** **** be *********** ** *** ** *** Security101's ****** ***** ******** *** ******** against *** **** ************ ********** ***** of ********* ******** / ********** ******** integrators.
** **** ******** ** *********** ** do *** **** ** ******* (*.*., Convergint *** *** **** ********, *****?)
** *******, *****'* ****** ** *** cash **** ******** *** ****** ******* having * ** **** **** ** to ********** *** *******'* ****, ********?
******** *** ** ** ******* *******. The ******* **** ** * ***** asset. ** *** ***** ***** ********.
******** *** *** ** ***** ******* locations *** ***** ********* ************* *** available.
** **********?
** *** ******. *****, **********, *** always ****** ** ** * *****-** guy. ***** *** **** *** **********, or ********* ****** ** ***** *** franchises **** *** ****** **** ** "stand-up" *** **** **** ***** *** deep ******** ******** **********. **** **** just "**** ******* ** *** *****." In **** ******, **** ** *** team **** *********** ** * **** than ******* *********** ** ******** ***. The **** ***** **** *** ***, of ******, ** * ** *** giving ***** * **** **** ** this. ***** ** *** * *** team *** ****'* ******* ** **** enough, ** ***** ** ******** **** and * **** **** ******?
** ****** ********** *** ***** ***** by * ********* ***** ** **** him **** ** *** ***********. *** in ******** ***** ** ***** **** the *** ** ****** ***** ** never ****** **** **** ****--** ******* to ***--* ******** *** *********. ** was *** **** *** ******** ********--*** was ********* **** ******** ******** ************* and ****** *** **** ** ****** would ** ****. * **** ** and ******** *****, ** ***** *** help. ** *** *** **** ** had ****** ****'* ***** $**. ** employees, *** ********, ** ******* ** understand *** ** ****** *** *** customer. ** **** ********, ******** *** failed *** *** *** ******--*** ***** really **** ****** *** **** ** struggled--he **** ******* "**** ****" *** back ** *** ***** ** *** previously *****.
** ******* *********, ** **** ********* with ***** **** ******* ** **** for ******** ** ******** *** ** have **** * ***** ********** - a ****** ** **** ******** *** we *** ******* *** *** **** opportunity ** **** ******** *** * couple ****** ********* *** ** **** never **** ***** **** **, ** my *******, **** *** *** *** different **** *** ***** ***** ******* with ******** ***** ******** - ** comes **** ** ***** ********** *** tighter ******* ******* ***** * ***** it ** ****** ** ** ** a ********* *****.
*** **** **** ****** ** ** the ******** *** / ******?
#*, *** *** ********* ** ****? I ** ******* ******** **** *** but ***'* **** ******* ***** ****.
**** ********** ***** ** ***, *** a *** ******** ***** ** ******. ADT & ****** & *********** &... should *** ** *** ****** ** follow ** ********... ********** ********* ******** practices. ******** ** ********* *** ******* for ******** ******** (*******/**************) ** ****** delivering ******** ************. *********** **** ****** guidance. ***'* **** *** ****** ** ADT ********... **** **** ** **** backfire.
*’* ********** ** *** *** * PE **** ******* ** ************* ******* this *********. ******* ********* *** *******, is * ******* ******** ******** ** help ******* *** ***** ***** **** then **** ** ** ******?
*** ******* ** ******* ** ***** offices ***** ** ** ****** ********** but ** *** ********* ** *** or *** *** *********** ** **** branch.