Security Systems News

NOV 2018

Security Systems News is a monthly business newspaper that reaches 25,100 security installers, product distributors, central stations, engineers & architects, and security consultants. Our editorial coverage focuses on breaking news in all major se

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Children and families in crisis across the USA need our help – and yours. And as a 501(c)(3) organization, Mission 500 now has even greater flexibility to work with local charities to better support existing and new sponsors and volunteers. But even with over 1100 children sponsored and many acts of charity performed to date, there's still a great deal of work to be done. Get involved today! Visit mission500.org for more information. Supporting Families Across America NEWS By Spencer Ives YARMOUTH, Maine—It seems as though 2018 is a hot year for financial transactions in the secu- rity industry. At the time of writing, Security Systems News has covered more than 65 mergers and acquisi- tions. "As the decision to sell is such a personal one for a business owner, there is no universal 'right time to sell.' For someone who decides to sell today, the market is robust and will reward a well run company owner with a good price," John Cerasuolo, president and CEO of ADS Security, wrote in a News Poll response. Sixty-nine percent of respondents noticed that it has been a busier year for mergers and acquisitions in the security space. 2018 is not much different in terms of M&A activ- ity as compared to previous years, according to 22 percent of respons- es. Nine percent said that the buy- ing and selling market actually SSN News Poll: Is 2018 the year of the acquisition? seems to be slower this year. One respondent said that their company recently purchased 2 A/V businesses, the only purchase in their company's history. One quarter of respondents said that their company acquires other businesses quite regularly. "Our company does make acquisitions, but only when it makes sense to. Our philosophy is to focus [on] the experience and expertise and values of companies we acquire in conjunction with our client's and market needs. We do not make acquisitions to simply have a large market presence," said one reader. Another 41 percent said their business only acquires very occa- sionally. "It has been a great way to boost your RMR instantly without time and labor that it would nor- mally take to achieve," another respondent said. Thirty four per- cent said their business is entirely focused on organic growth. But, has it been a good year to sell? Half of all respondents have noticed that companies that have sold recently have gotten good mul- tiples for their business. Forty-seven percent said that, as is typically the case, the sale price of a company depends on the individual business. Three percent said this is not the year to sell. "With all of the new entrants into the monitoring space, with newer, better technology, I believe that the value of existing monitored accounts will begin to fall rapidly," one respondent wrote. "Add the required CDMA radio sunset to LTE, and this will compound the issue. Existing customers have taken notice of the new technol- ogy, and want to incorporate these features into their systems. This will make acquired customers more vulnerable to attrition and more expensive to maintain. [I] believe the cost of acquisitions will begin to fall when the market recognizes these industry shifts." SSN Have you noticed more acquisitions this year? Does your company grow by acquisition? Do you think it's a good market for sellers? News Poll based on answers provided by respondents in September and October. By Spencer Ives SILVER SPRING, Md.—SIA recently named Larry Folsom as this year's recipient of the Jay Hauhn Excellence in Part- nerships Award, which recog- nizes security professionals who foster collaboration in the industry. The award will be presented at the SIA Hon- ors Night on Nov. 14 in New York City. Folsom was deserving of this award for several reasons, Scott Schafer, SIA's chairman of the board, told Security Sys- tems News. "He's passionate about the industry—that's one of the most important things," Schafer said. "This is about outreach and collaboration, and he really fits that because of the work that he's done." Folsom has more than 15 years of experience in the security industry, including serving as president of the Partnership for Priority Veri- fied Alarm Response from 2016 to 2018. PPVAR works to educate security stakehold- ers about the value of video and other technologies in verifying alarm activity dur- ing the dispatch process, reducing the prevalence of false alarms and increasing apprehension rates for bur- glar alarms. "Larry did a really nice job of pulling together a lot of the organizations working on their own," Schafer said. "It wasn't just being involved with SIA and PPVAR, but it was also enlisting the support of others who had a stake in the game, and pulling every- body together so that every- body could benefit from the work that that one organiza- tion did." SIA noted in its announce- ment that nominators praised Folsom for moving PPVAR forward and working with police on how they can inter- act with alarm systems using video and other technolo- gies. Folsom was also recog- nized for leading coordina- tion between PPVAR and The Monitoring Association to ensure alignment between the two organizations and estab- lish best practices for central station operations in pursuing verified alarms, according to SIA. "Through his liaison work, particularly with the law e n f o rc e m e n t c o m m u n i t y, Folsom's contributions have proven valuable to SIA mem- bers thanks to the generation of open dialogue between public safety leaders and monitoring firms—with pos- itive outcomes in ordinance and policy development," SIA said in its announcement. "I am deeply humbled and honored to be recognized with SIA's Jay Hauhn Excellence in Partnerships Award," Folsom said in a prepared statement. "Jay epitomizes what true collaboration can achieve for our industry. He has been an inspiration to me to also work to unify technologies, Larry Folsom to recieve SIA's Jay Hauhn award Fol S om see page 5 Together we can Educate Inspire Heal Nourish Children and families in crisis across the USA need our help – and yours. And as a 501(c)(3) organization, Mission 500 now has even greater flexibility to work with local charities to better support existing and new sponsors and volunteers. But even with over 1100 children sponsored and many acts of charity performed to date, there's still a great deal of work to be done. Get involved today! Visit mission500.org for more information. Supporting Families Across America SECURITY SYSTEMS NEWS Nov EM b ER 2018 www.securitysystemsnews.com NEWS 3

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