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PERS

AT&T rolls out mPERS unit

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Wednesday, December 11, 2013

AT&T has officially launched its mobile PERS unit, called the EverThere, a small wearable unit manufactured by Numera Libris. The device automatically detects falls, has two-way emergency calling, and will deliver both enterprise and direct-to-consumer solutions.

Chris Penrose, SVP, AT&T, emerging devices, shed some light on AT&T's plans for channeling the product to market. “In terms of end-users, unlike traditional PERS, which target individuals in their 80s, this mobile solution would offer true independence and freedom for the healthy aging population as well as those living with chronic conditions.”

For me, AT&T’s announcement has a touch of synchronicity.  For something of a niche offering, mPERS has come up quite a bit over the past two weeks, the topic surfacing in conversations with Josh Garner, CEO of AvantGuard Monitoring, and Kristin Hebert, dealer relations at Acadian Monitoring Services, who both said their companies have made strides with the fledgling offering. Though traditional units still comprise about 90 percent of their PERS account bases, the gains do represent some modest traction for a market that was essentially a non-starter some three or four years ago.

Unlike the market for traditional PERS, which consensus says is poised to explode, mPERS tends to have a few more skeptics. A common critique I hear about mPERS is that if you’re pitching the product to a healthy, ambulatory, active senior demographic, that very same demographic, by virtue of being healthy, ambulatory and active, will see no reason to pay for the unit. Another position I encounter is that cell phones, in all their ubiquity, have all but usurped the value of mPERS units.

This second point is worthy of consideration, but as AT&T’s device illustrates, the automated response provided by certain mPERS units or even professionally monitored mobile apps offers some differentiation.

As always, time will tell whether mPERS adoption will be buoyed along with traditional PERS, as the latter makes its projected rise in the market. As these markets become more valuable, I’ll be interested to see how some of the central stations fare as competition proliferates, both in the industry and outside of it.

Linear PERS transmitters recalled

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12/10/2013

CARLSBAD, Calif.—Linear is recalling some PERS transmitters after a report that one transmitter failed to operate, the U.S. Consumer Product Safety Commission (CPSC) announced this week.

Acadian Monitoring goes mobile

The company’s dealer network has expanded on the strength of a mobile app for installers; Acadian also is finding success selling mobile PERS units
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12/04/2013

LAFAYETTE, La.—Powered by the launch of a mobile app that helps technicians, Acadian Monitoring Services, based here, saw its dealer base grow substantially in 2013, Kristin Hebert, dealer and vendor relations at the company, told Security Systems News.

SSN readers united on PERS, but divided on how to implement it

Funding is an issue for launching PERS; 46 percent say they’d get into PERS if they had the capital
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11/13/2013

YARMOUTH, Maine—Readers view PERS as a good way to augment business, but are somewhat split on how best to incorporate PERS into their business, according to respondents to a recent SSN News Poll.

Ill woman uses AvantGuard system for help

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11/04/2013

BIRMINGHAM, Ala.—An Alabama woman was getting ready to go to her beauty parlor when she felt ill.

PE ponders PERS

Edmonds: ‘capital providers’ join MAMA ranks
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10/23/2013

ST. LOUIS—There will be more transactions in the typically quiet PERS space over the next six to 12 months, and maybe even sooner, according to Henry Edmonds, president of The Edmonds Group, an investment bank here, which specializes in recurring-revenue businesses.

Henry Edmonds presents on PERS valuations

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Wednesday, October 9, 2013

As I encounter new theories and projections about PERS valuations, I continue to find a refreshing lack of consensus among the experts. That’s not to say there aren’t areas of agreement. There are. Those watching the market often cite similar determinants of valuation, such as attrition rates, cash flow and the costs of creating new accounts. But experts seldom invest the same metrics with equal importance.     

For example, Barry Epstein, president of Dallas-based Vertex Capital, believes reducing attrition rates to be a critical component of increasing PERS valuations. Conversely, Mark Sandler, a principal with SPP Advisors, downplayed the importance of churn, saying instead that a company’s value hinges more on how efficiently they can redeploy their units.

Today I came across a presentation on PERS valuations delivered by Henry Edmonds, president of The Edmonds Group, at the Medical Alert Monitoring Association conference held last week in Orlando. Edmonds’ insights reflect another nuanced interpretation of the market. In the presentation, he boiled PERS valuations down to four key metrics: cash flow; churn (attrition rate); growth rate/new account volume; and creation cost.

Just as vital for maximizing value is the ability of dealers to compile solid data on these metrics, Edmonds noted in one of the slides.

Edmonds developed some pretty in-depth calculations that he believes dealers should be cognizant of. For instance, churn rate metrics should account for total lost RMR on a trailing 12-month or trailing six-month basis. That figure should then be divided by average outstanding RMR. With respect to the cash flow, Edmonds advises dealers to focus on adjusted EBITDA and steady state free cash flow.

Edmonds’ presentation also offered a trove of information about buyers. He noted that buyers will create finance models for target companies, develop key assumptions based on a target company’s past performance and determine a capital structure based on current market conditions.

Edmonds also provided the following aphorism: “Buyers never pay more than they think they have to.”

In the coming weeks I plan to speak with Henry Edmonds himself to get a more in-depth take on PERS valuations and the state of the market in general. Stay tuned.

PERS company valuations predicted to rise

Epstein: Look for more PE activity in PERS market
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09/25/2013

PARK CITY, Utah—Fresh off moderating a PERS Summit panel, Barry Epstein, president of Dallas-based Vertex Capital, expects the PERS acquisition market to heat up as valuations climb.

PERS: What we know, what we don't

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Wednesday, September 18, 2013

The projected expansion of the PERS market will be fueled by several realities playing in its favor. First and foremost, the demographics, highlighted by an aging baby boomer population, are compatible with growth in the PERS space. Similarly, PERS devices make seniors better equipped to remain in their homes and possibly reap considerable cost savings. The market is relatively resilient. The technology is simple. One of the biggest barriers to entry may be tapping into the right marketing channel, Josh Garner, CEO of AvantGuard Monitoring Centers, told me in a conversation we had earlier this year on the state of the PERS industry. The marketing hurdle is not to be underestimated. But it also seems far less an obstacle than, say, mastering the technical ins and outs of a product truly difficult to integrate or install.

These are all PERS-relevant realities of which the industry already has a fairy sound understanding. While much is known, many questions still linger with respect to the future of the market. That much became clear in a recent conversation with Barry Epstein, president of Dallas-based Vertex Capital.

One question with many ramifications for the market: what will reduce the annual attrition rates for PERS devices? Will it simply come down to a broader (and younger) customer demographic? Metrics are far from perfect, and the market is still green from an acquisition standpoint, but Epstein says the attrition rate for PERS devices hovers somewhere between 24 and 36 percent. Even at the lower end of that spectrum, these rates are not conducive to huge RMR value, and they could make private equity firms leery about getting involved, at least right now. A huge ancillary question to the one posed above will be what kind of innovations, on either the dealer or manufacturer end, can companies make to reduce these less than sterling rates.

Another question: Can smaller alarm companies do PERS? Or is the market going to remain the province of larger dealers or wholesale monitoring companies who can afford to support a PERS-only division? To what extent will traditional alarm companies have a share in the space at all? Epstein, who recently moderated a panel at the PERS Summit in Park City, Utah, said the conference naturally featured an abundance of PERS dealers, but only a small fraction of them had alarm accounts.  

The development of this market will be worth watching closely. When will the acquisition tipping point occur? What will be the force behind it? What factors, as yet undeveloped, stand to drive the market’s upward trajectory? And what about mobile PERS units?

In a broad sense, we're mostly sure where the PERS industry is going. But regarding specifics, questions abound.

Customizing PERS to specific health needs

Essence USA president says new PERS system has many options, can function in large radius, monitor an individual’s temperature and routine
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09/11/2013

HOBOKEN, N.J.—Essence USA, a manufacturer and developer of security systems and monitoring and health care solutions that is based here, has launched its third-generation PERS product—the EverGuard-Care, a wireless home health monitoring system.

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