The $100+ Million Employee-Owned Integrator: TSI CEO Interview

Executive *******

***** *** $***+ ******* ****** ******* integrator ************ ** **** *** ** the ******* *** **** *** *** would **** **** **** ***** ******* to * ****-**********, ***** ** ********-***** company ** **** *** *** ******** (owners) *** *** *********, ******* **** focus ** ********* *********** *******.

***'* *** ********* ********** ***** *** performance ** ****-***********, ****** **** *** fine ********* ***** ******** ** *** margins ** ****, ********* **** **** will ********** *** ******* ********.

*** ******* ** ** **** ****-**** if ***** ******* ****-*********** ** *******, as **** ******* ***** ** ** a ******** ************ ** ***** *****. However, ** *** *** ** *****, they *** ***** ******* ********* *** long-term ******* ***** ****-*********** **** *** fall.

Tech ******* *******

*** ******* ** **** ** * division ** * ****** ********** ******** on *** **, **********, *** ************, Keeler **** ****:

**** **** ******* *** * *** to ** ******** ********* ** ***** existing *******. [**** ****] ******* *** opportunities ** **** ****** ****** *** new ** ******** *********.

****** ******** *** ********* ** * product ****** **** *** ** **********. Considering *** ******* *****, *** **** advised *** ** *** *** *** company:

* *** ***** ** *** ******* Manager ** **** *******, *** * went ** *** ****** ** *** parent *******, *** * **** *** product ******** *** **** *** ****** the **** *** ****** *** ****** taken *** *** ** ****** ** go ******** **** **** ******* ** were ******* **** **********, ********* ******* of *** ******* ** **** ****.

**** **** ** ******'* ***** ****. But ** ** *****'* ****, ** puts *** ****** ******* *** * few ***** ****** ****** ********* ** risk. **** ****, "*** ***'* *** buy **, *** **** *******?"

****** *** ***** ****** ****** *** Tech ******* ** *** *****:

* **** *'* ** [***] * don't **** *** *****, *** *'** see **** * *** **. * was **** ** *** ******** [****** resources]. ***** **** **** ** ** initially, **** ***** ** ****** **** Systems ** ***** *****.

***** **, *** ******* **** *** product, **** ***, ** * ** subsidiary ** **** **** ** ***** take **** ** *** *********:

** ********* ** **** *** **** Cam *******. ** *** ** * place ***** ** *** ******** **. We **** ******'* ******** ** * small ******* ** **** ** ****** care ** *********.

** ******* **** * ******* **** was * ******** ** **. ********** they ***** ** ****** **** ******* from ** ****** **** ***.

***** *** ****, **** ******* ********* complaints ***** **** ***'* ***** ******* to ******. ****** **** **** ** also **** **** ****** ** ************ rollups ****** *** *****:

** *** ****, * ****'* ******* it, *** ** *** * ********** shift. **** ***** ** **** **, I *** **** * ***** ******* whom * ****** ******* **** *** he ****, * **** *** **** had ***** **** ****. ** **** you **** **** ** ** * big ************ **** ** *** * can't *** *** *******. [**** **] along *** ********* ** *** *** things ** **** ***** ***** *** large *********** ******* ** *** ***** entrepreneurial *********. **** ****** ********* **** me.

Disadvantages ** *******

****** *********** *** ********** ** ******* a ******** ** ****** ********, ****** said ** ***** **** ******** ******* do *** ******* ********* *** *********:

****'* *** ***** *** ** ** that ******* *** **** *** **** really ******** [**** *** ****] ** the ***** *** *** ******, *** customers *** *** ********* ********* ***'*.

******** ******* *** ******* *** ********** themes ** **** *******. ****** ******** more ********:

**'** **** **** ** ***** **** in *** ********. *****'* **** * lot ** *********** *** ************* ***** back ** **** ********* ******* ********* all ***** ****** **** *********.

**** **** **** **, **** ***, nothing's ***** ****** *** **** ********** changes *** **** **** ******* *** company.

**'** ****** **** ******** *****. **** the **** **** *** ***** ****, not *** *** **** ***** ******, that ****** *** ****** ** ** and ****** [****] ***'* *** *** service *** ******* [****] **** ***.

*** *** **** ******* ** ******** opportunities ***** ****** ******** ****** ***** projects:

**'** ******* ************* *****. ****'** ****** from ********** *** *** *******, **** the ****** **** ******* **** *** not ********** *** *** ****** **** of ***** ********* ***, ***** ****** to **** ** ** ** **** another ********.

Transitioning ** ****

*** ******* *** ******** ** ****** the ***** ****** ** **** *******, Keeler ***** ***** *** **** ** interest ** ******* *** *** ** an **** ****:

**** * ***** ** ***** ***** my ********** **** ** ********** ****, I ****'* ********** ** ******* ** to *** ** *** ***** **** because **** *** ******* *******; **** everything *******.

** **** ********** ******* *** **** an******** ***** ********* **** (****)-***** *******. *** **** ******** *** transition ** **** ****; ****** ****:

** ****** ********* *** ******* *** so ** ************ **** **** ****** to **** *** *** **** ********* by **. [***] ** **** ****'* [the] **** *** ** ** ** that. *** ******* ********** ** *** it ** *** ****-*********** *** ** at *** ****. **** ******* ** years ** ******* *** ** ** July ** ****. [**] *** ***% ESOP ***** *** ** *** ****.

*** **** ****** **** ** ** rewards "****** **** ***** *** *******" Keeler ****:

**'* *** **** ******** ** **** made. * ***** ******* ***people *** *** ** ** ******** *** *** ******* **** *** ****** **** ***** *** ******* that continue to take us into new opportunities, years and years later. [Emphasis added]

[** ****] ** ******* *** ** changed *** *** ** *** *******, obviously, ******* **'** ** ****** ****** taxes *** *****'* * **** ********** level. *** **** ** **** * board *****, ****** ****, ** ****'* have. **'** *** * ***** ***** with * ******* ******* *** * inside *** *******.It's ****** *** ********* ****. [Emphasis added]

** ****** ******* *** ********* ** *** US *** ** * ********** ****, with ********* *** **********, ******* ** IRAs, ***** *** ** ******** ** contributions. ********, ******* *** ***** *** not ******* ** ******* ** ***** income *****, ***** *** * ******* at ***'* ***** ***** **** ******* of ******** ** ******* * **** just **** **** *** *******.

No **** ***********, ******** **********

****** ******** *** ********** *** ** pocket. ** ********* ** **** **** he *** **** ** ***** ******** in *********:

* ***** ** ******* ** **********. If ***'** *** * **** ********, it's **** * ******* *******. ** we *** * **** **** ** hard **** *** **** ***** ******** my ********. **'** ***** *** ** do **** [******* ** *** *** take *** ***** **** *****].

** *** ******* * **-**** ****, and **'** ****** ** ****.

*** **** ** ***-******** **** ***** typical ********** *****. *********' ***** ********* is ********** ** *** ********** ** their ******** ******** ** *** *******'* total ******, *** *** ***** ** the ****** **** ****** ** *** semi-annual ***********, ****** *********:

** ** *** ********. ***** ***** value ** ******* ***** ** *** current *****.

**** ******** ******, **** ** ****'** just ******* ** ****** **** ***** industry, ********* ** **** **** ***** in *** ****, ** **** ** paid ** *** ******* **********. ** if **'* ****** **** ** ** the **** **** ** **** **** by *** ********** *** *** ******** year, ***** **** **, ** **** going ******* ** *** *** ** the ****, **'* **** ** *** next **********.

[*** **** ****** *** ****] ** primarily ***** ** ***** ********** ** the ***** ****** ** *** ***** payroll.

****** ********** **** *** ********* *** owners ** *** *******:

** **** ** ****-**** ********* ****** with *** ******. *** ********* **** are ** **** ****** ** * am.

ESOP ********* ***** **** *********** ***********

*** ******** ** ***** **** ** that *** *******'* ********* ***** ** be ***** **** ** *********** ************, but ****** **** **** ** ***** to ********** *** ********* *** "***** the *******" **** ***:

* **** ***** ** *** ***** doing ** **** ****** * *********** acquisition. * ****'* **** ** **** with *** ******* ** * *********** acquisition [***** **] *** ********* *** the ******* ***** ******** ** * negative ***.

* *** * *** ** ******** on *** **** **** **** ***** this. **** ***** **** *******. ** wasn't **** ** *****. ***** **** a ****** ** ****** *** **** put * *** ** ***** ****** into **.

***** ***** *** ********* ********** *****, their ********** *** ********* ************, ****** private ****** *****, ***** ********** ***** higher **********, ********* ** ********* ********* or ****** ************* **** ****. **** is * ******** ** ********** ****** considering ***** *** *******.

Doubles *******, *** ********* ***** ****

*** **** ** ******* *** ******* from $**-$** ******* ** **** ** $103 ******* ** ****, ****** ****:

** **** **** $*** ******* ** revenue **** ****. $*** ******* **** year ** *******. ** *** ******** $50 [*******] ** $** [******* ** 2015].

** ********, *** **** *** ******** list **** *******' ******* ** ~$** million. ****** **** **** *** *** to *********** ** *** *** *********** revenue.

*** *******'* ***** ***** ** *** 20 ***** ** **** ** ** was ** **** ********* ** *** evaluation *** ******* ***** ** ** through ***** *** ******:

** *** ** ****** ********* **** the ******* ******* **** * ***** party, **** **** * *** ** transparency.

*** ****** ***** **** ** ******* in **** *** $** * *****, and **'* $***.** ***.

*** ******** ** ******* ** **** specifically ***** ********* **.

******* ******, *************, *** ******* ***** factors *** ********** ** **** ******'* valuation, ****** **** ****. ********* *** most ****** ***********, *** ******* *** affected ** ********* *** ****** ******** rates ** *** **** **** *** still ************ *** ******, ****** ****:

***** *** ***** ******* **** **** or **** **** ***** *****. **** year, ** ******** ** **** * big ******** *** ** *** ** okay ******** ******* *** ********* [***] the ******** *****, ****** ** ****** in ****. ****'* *** ********* **'* experienced ** **** ****. *** ** that *** * ****** *************, *** again, [**] ************ **** *** ****** was *****.

Business ***** - ******** ** ***

****** **** **** **** *******' ******** on ********* ******* ****** ** ********* through *** **** *********:

***** **** **** ****** ** ** hadn't *** *** ****** ** *********** revenue ** *** ** **** ****, we ***** **** **** ** *******, because ****'* ******** *** ******* *** we **** ****.

**** ******** ** ******* ** *** differentiator ******* **** ******* *** *** larger ************, ****** ****:

***** ********* *** **** *****-*******, *** we're **** *******-*******.

** ***** ** ***** ** ******** our *** **** ** *** ** that [****]. **'* ***** **% ** our ***** ******* *****, *** ** want ** ** ** ****. **'* not **** **'** *** ********** ** doing ********. *** ** **** ** do ******** *** ********* **** **** a ****-**** ******* ************.

**** *******' ******* *** ****** ******** in *** ****** ******, ****** *****:

**'* ***-*********. **'* *** ***** *** one ****, *** ***** *** **** exceptions ***** **** ************ ******* ****** [like] * ********* ** * *******.

Business ********

*** *** ~*** ********* ****** *** of *** ******** *** ******** *****, Keeler **** ****. ** ********** ** his *******'* ******** ****** *** ******* and *** *****:

** ******* ** *******, *** **** we ****** ** **** *** ********* and **** *******, *** **** ** really ***** ** **** *** *** go ****** *** *******.

** ******** ********* * ******** **********. We're ******** ***** **** ** ****** and ****** **** ** ****. ** also ** * *** ** ****** work **** ****** *******.

*'* *** ***** ** *** **'* anything **** **** * ******** *** we're ********* ****** **** ***. **'** got ***-****** ** *** ***** ******* in ******** ***** ** **** ******** client *****.

*** ******* ****** ***** ******** ******* word ** ***** ******* ** ****-**-**** sales; ****** ******** ** *** *****:

** ****'* ** *** ***** *** start ******* ** ***** ** *** one ********, ****** ** ** ********. We **** **** ** *** ********* we *** *** ***** ********* *** constantly ******* ***** ****** *** ***** they *** **** **. *** ** that ****** ** *** ******** ** that ******. **'** ****** ****** *** country **** ****. **% ** **** we ** ** ********-***** [********].

********* ******** *********, *** ***** ** grow *********** ****** *** ******* "***** acquisitions":

**'** **** * *** ***** ************ over *** *****, ********* ** *** the ****** *** * ****** ** trucks *** **** ***** *****, *** nothing ****** **** ****.

Scaling - *********** ****** *** *******

*** ******* ********** *********** ***** **** upon ******* ** ******** * ********** level ** ******* **** ********* **** other *******. ****** ********* *** **** Systems ********** ******* ******* ****** *** board *** ******* ************** ** *********:

** ** ****, * ****** **** concerned, "***, *** ** ***** ****** the **** *** ** ********** ** we *** ** *******?"

**'* ******** **** ** **** *********** across *** *******. ** ****** *** 9001 ********* ** ****. ** ********** what ** ** *** **** ** do **** ** **********. ** *** audited ** * ***** ***** ***** a ****.

[** **** ******] *** **** [*********] in **** *** ***** ******* ********.

*********** ** ********* *** *** ******* to ******* ****** *********, ****** ****:

** *** ***'* **** ** [*** consistency], ***'** *** ***** ** ** able ** ***** **** ** *** bigger *************.

** ******* *********** ****** ********* *****, Tech ******* **** ******* *&* *********** across *** *******, ********* ** ******:

** ********* ******* ** ************* ** the *******, *** ********* *** ***** own *** ** **********, *** **** we ***** ** ****** **** *** big **** ******* ********* *** ********* for * *****, *** **** ****** to ******* ***** *********. ** ******** calls **** ******* *** **** ** Georgia *** ****, "***, * **** a ****** ** **** *** * couple ** ****." [*** ***** ****** might ***,] "* ***'* *****." ** quickly **** **** **** * ****** of ***** ***, *** ** **** off ** *** *** ** **********, one *&* ** * *******.

Company ******* - ****** ***** *** **+ **** *********

**** ******* ****** *** ******* ******* and ******* ***** *** **** *** a **** **** ** *** *******. Keeler ****** ***** **********'* "****** *******" (*** ***** **** video)*** ***** *** **** ****** ** Tech ******* *** **** **** *** years:

** **** ** *** **-**** **** "Family *******." ******* ***'* **** **** the ******* *** ** ** **** years, ** **** ** ** ****** trip, * *, * ***-**** *********. We've **** ***** **** ***** ****.

Retaining ******** ********** *** ***** *** *****-** ********

** * ********** ** **** *******' emphasis ** *** *********, ****** ********* how *** ******* ***** ** ******* its ********* ******* ** ******* ****** the *****-** ********:

** *** ***** ** ****. ** jumped ** *** ***** ** * management ****, *** ** **** **** thing ** ****, **'* ****. ** have *** ******** ** **** *****: do ** ******* *** ****** ** our *******? *** ** ****, ********** protect *** ******.

** *** * ********** **** ** our ****** ** **** ** ***** even. ** ****'* **** *** ********** during **** ****** ** ****. ** knew ****** ***** **** **** *** ramp **** **.

****** **** *******, **** ***** *********** had ** *** ** ** ********* to ******* ************ *** *** ************ regaining ******* ***** *** ********, ****** said:

**** ** *** ***** ****** **** had ** *** * *** ** people ***** ** ******* ***** ************, and *** ***** *********** ** ******** you **** ** ****, ** *** in *****, ** *** **** **** to **** ****** *** * *****.

**** ******* *** *** ** ******* such ************, ****** *****:

** **** **** **** ***** ******* to **** **** ****** **** ****.

Working **** ***

*** ** * ****** ** ***. It ***** **** ***** *** *********** on ********, *** *** ********, ****** explained:

** ** **** **** *** *** other ***********.

****'** *** **** ******* *** ******** and ************* *******. **'* ********** ******* and *******. ** ** **** *** projects, *** **** ** ***** ** service, ** ** *** *** ******* ourselves.

*** **** ********* ** ****** *** Alaska ***** ** **** ** *****-********-**** response ** *** ******* ****** * four-hour ***** ******** ************* **** **** of *** ******* *** ** *****.

***** *** *** ***** *** ******* who *** ****, *** **** ******* is *** *******, ****** ******:

**** **** ***** ******* **** *'* aware ** **** *** **** -*** ****** ** *********** ********* ** ***********.

Growth ******** - *** *** ******* *** *** ****

*** ******* ******** ** *********** *********** is **** **** ***** **** *** required ********* ** ***** ******** ** their ****** ************, ***** *** ******* equity-backed ** ***** ** * ************. Keeler ************ **** ****** *** **** that **** ******* **** *** ****** to **** ****** *** ******* ** service ******* ********:

*** ******** ** **** ** *** not *** *******, *** ** ** believe ** *** *** ****. **'** continue ** **** ***** ** *** no ****** ******* *** ******* *** clients ********.

** ** *** ** *** *******, and ****'* **. ****'* *** ****. That's ***** **'** **. **'** *** going ** **** **** *** *** sake ** ******. ** **** ** protect *** ***********, *** *** ******'* credibility, *** ****'* *** **** *** you *** ** ****.

****** ******* ********* *** **** *******' different ********** ****** ** ** **** customer ***** ***** ***** ************ ***'*:

** *** ********** ** *** ******** to * ******** **********. * ***'* tell *** *** **** ****** ************* we've ****** ******* *** *** **** said, "***, ** *** **. ** have ***** ** ***** ****, *** we *** **** **** ** ***** need, *** **** ****** *********."

****'** ******* *** ******** ** **** in *** ********* ***** *******, ***** tend ** ** ***** ********** *******. That's *** **'** ***** *** ********.

****** **** *********** ******** **** *** long-term ************* **** *** ****** ******** and ******* *** **** **** ******* will *** ********* ******* ******* *** growth:

*** ****** ** **** ** ** you **** **** ** *** ********, the **** **** **** **** ** that. ****'* *** ********. ** **** for *** ***** ************* *** * long-term ******* ************.

** ****** ***** ** **** ** see ** ***** ** ** *** this ****. **'* ******* *** ******* to *** *** **** ** **** by **% ********. **'* *** **, if ** ** ****, **** **'** going ** ** ******* ********. ** gets ** *** ** *** ****, and **'** *** ***** ** ** any ****** **** ******* ****.

No ******* *****; **** ****** *********** **** ****

**** ******* ** * ****** ** the******* *********, * ********** **** ** ********** that *** ********* ** ***** ********* held *** ****, ****** ****:

[******* *********] *** * ******* *************** *********, ***** ***** ***'** ********* ** being ********* **** *** *** ***** or ****. ** **** **** ******* that ************* ***** ** ***.

**** ******* *** **** ********** *** determination ** **** ***********. ****** **** an ******* ** *** *******'* **** promotions:

*'** *** * ****** ** ****** media ******** **** *** "*** *** Sale"; *** "**** ******* ** *** for **** ****" ** *** ****.