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Bill Bozeman

ISC East postponed, new dates not yet determined

Security Industry Gala also postponed
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10/29/2012

NEW YORK—ISC East organizers announced that the trade show scheduled for Oct. 29-31 here at the Javits Center is postponed, due to Hurricane Sandy.
The Security Industry Association’s Gala, originally scheduled for Oct. 30, has also been postponed.

Cyber security a recurring theme at PSA-TEC

Drako: ‘Where was your DVR made? Is it connected to the Internet?’
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05/07/2014

WESTMINSTER, Colo.—The data breach that brought down Target CEO Gregg Steinhafel is being used as a cautionary tale here at PSA-TEC.

Will Securadyne be the next Convergint?

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Wednesday, January 8, 2014

Will Securadyne be the next Convergint?

That’s a possibility, according to Bill Bozeman, CEO of PSA Security. Bozeman has experience building a systems integration firm and knows both of the players in the Securadyne/Intelligent Access Systems deal that was announced yesterday.

In case you missed it, Securadyne, a start-up integrator founded by Carey Boethel and Pamlico Capital in early 2012, yesterday announced that it has acquired Ron Oetjen’s company, Intelligent Access Systems, one of the most successful and fastest growing regional integrators in the country. Here’s the a link to the story.

I talked to Bozeman today about the deal. He offered his opinion of the union and also discussed the stages of growth for integration companies—and the new challenges that come along with those different stages.

“I know both guys [Carey and Ron] well very well. They’re both PSA Security equity partners and owners. The consolidation, from our perspective, appears to be a good solid one. Carey is building a hell of a company with Securadyne; it looks to be the next Convergint, [and] congratulations to him [for that],” Bozeman said. Convergint is not a member of the PSA Security flock, but Bozeman praised [Convergint Technologies' CEO Dan Moceri] for building a very solid company.

Bozeman identified three growth-stage milestones for integration companies and the specific challenges that arise when companies grow past a certain stage.  Those milestones occur when a company reaches: A.) $3 to $5 million in revenue; B.) $10 - $15 million in revenue, and C.) $50 million in revenue.  

To get to $3 to $5 million in revenues you need to be a strong, entrepreneurial company, but to become a larger company, “You can no longer do everything yourself. You have to have a management team to help you with sales, technical and finance decisions,” he said. “This is a stage that a lot of companies can’t or don’t want to get past,” he said. The reason? They may be happy making a nice living and being the entrepreneur in charge, Bozeman said.

The next stage of growth hits when a company is doing $10 to $15 million in revenue. “They normally have more than one office and they need infrastructure. To get to the next level you need to hire well paid management people, and that can put a strain on profits of a company unless they’re well financed, which is unusual for most integration companies, or if they have a solid RMR model,” Bozeman explained. He also noted that Ron Oetjen had already successfully moved IAS past this stage.  

The third stage of growth is at around $50 million. “That’s when you really start to need a CEO and a senior management team made up of VPs that are experienced and are well paid,” Bozeman said.   

“Carey has already been president of Netversant and Siemens. He’s the ideal guy [to shepherd this company along] because he already knows what it’s like to run a company that’s $70 to $100 million or $200 million and beyond [in revenues],” Bozeman said.

“Carey’s a polished, senior level business guy who’s experienced on the large corporate side as well as on the entrepreneurial side. … And with Ron he’s got a super field general  [who brings with him] a strong middle-management team. Put that with Carey’s existing team and you have a nice equation for further success.”

Bozeman said it’s very important that Securadyne has a financial partner that knows the security business. “That’s an advantage,” he said. Pamlico Capital is a $2 billion Charlotte, N.C.-based middle-market private equity group. Pamlico was an investor in Sonitrol, but exited when that company was sold to Stanley Works in 2008.
Not all capital partners understand the security integration business, Bozeman noted.

Of course, Bozeman said, growing a national integration company is not an easy thing to do. “The proof will be in the pudding.”

PSA names new director of education

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05/23/2013

WESTMINSTER, Colo.—PSA Security Network has appointed Barbara Shaw as its new director of education, according to a news release.

The "haves and have-nots of security integration companies"

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Wednesday, May 8, 2013

PSA TEC is in full swing. The action started on Sunday night, but I arrived late on Monday. Yesterday I spent the day (Tuesday) talking to PSA Security integrators and members and attending four different educational sessions.

I attended the State of the Industry panel, moderated by PSA Security CEO Bill Bozeman and featuring a large group of integrators and industry experts; a discussion on Big Data, Business Resiliency and Physical Security moderated by Chris Peckham of Kratos; a session on security finance moderated by Bozeman; and a session on how to adopt managed services, moderated by Sharon Shaw, of Integrators Support.

These folks covered a lot of ground. I’ll be writing more in-depth stories on some of the topics covered, but below are some highlights from the day.

Haves and have-nots

Bozeman started the first session of the day quoting Imperial Capital’s Jeff Kessler, who in a recent report wrote that increasingly the world of systems integration is dominated by the "haves" and the "have-nots." The "have" have an RMR base, are making a good margin on jobs, and are profitable. The have-nots have not moved into managed services and are surviving on installation revenue. Bozeman agreed with Kessler, recommended all read his report, and spent a great deal of time in this session and others talking about how all PSA Security integrators can join the "haves."

Know your verticals
Phil Aronson of Aronson Security Group, Ron Oetjen of Intelligent Access, and Eric Yunag of Dakota Security all said “deep focus” on your vertical markets is key. Yunag, whose Dakota Security is growing rapidly, said that his company made a strategic misstep 7 or 8 years ago when it decided to expand outside of the financial vertical. Banks are something that Dakota had grown to know very very well. The mistake the company made was not the fact that it expanded outside of that vertical, but it did so without the focus and understanding of other verticals.

The message from integrators on the panel was this: Focusing on different verticals is good, but get to know them. And don't delve into too many. How many verticals should an independent integrator focus on? Three, most agreed.

Mad about channel conflict? Look within
Another topic that came up was the problem of channel conflict and manufacturers going direct to end users. Jim Henry of Kratos, said it’s important for systems integrators to remember that manufacturers who go direct to end users fail. However, he noted, “it’s important that and end user sees you as a value, not a middleman making a margin.” Yunag added that if an end user is going direct in your coverage area “that’s your failure as a systems integrator.” You need to know what’s happening in your region, and if this kind of stuff happens take a look at your own organization.

Government Opportunity
Don Erickson, CEO of SIA, was banging the drum about the opportunity for integrators who want to do business with the federal government. Despite sequestration and budget problems, money is in the pipeline for K-12 projects, ports, transportation. “Consider the GSA Schedule program, it’s a very effective contract vehicle for doing business with the federal government.”

How to build an effective business?
During the State of the Industry, Ron Oetjen of Intelligent Access Systems broke it down this way: hire the right people and focus on your strategic plan.  Later, during a finance educational session that got pretty granular about how to make your business attractive to buyers, Kratos’ Jim Henry said that the businesses that he’s attracted to are the ones that are not for sale, the ones with a “clear vision and a mission.”

Boston bombing and video surveillance
In the aftermath of the Newtown gun massacre and the Boston Marathon bombing, Yunag said that now is a “significant watershed for our industry and the services we provide … in the next five to ten years, the way video surveillance is used will change,” he predicted.  The general public has seen, particularly with Boston, how video surveillance can be useful. Jim Henry said that the incident clearly demonstrated how video can be used for “actionable intelligence and business intelligence.” Further, he said, it's important to note that the ability to find the suspect was not because the camera in question was a certain quality or manufacturer,  but because it was a “well positioned camera installed by a professional.” This horrific event showed the world how video can be used, Yunag said, and it's incumbent on integrators now to have those conversations with law enforcement and others about how they can best take advantage of video and other physical security offerings to help prevent and detect situations like these.

There are many more highlights that I’ll report on later, now I need to get to the conference.

Google security manager to keynote PSA event

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05/03/2013

WESTMINSTER, Colo.—Robert Bastida, regional safety and security manager at Google, will deliver the keynote address at PSA Security Network’s PSA-TEC 2013, according to a company statement.

PSA Security integrators talk time management

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Wednesday, October 24, 2012

I caught the last two days of the PSA Security Convention which took place on Florida's panhandle in Destin, Fla., this week.

About 30 of North America’s top security integrators attended this annual event. On Monday morning PSA sponsored an educational session about time management.

I know, it sounds dry, but it wasn’t.

The moderator, Paul Boucherle, asked attendees if they knew the dollar amount for hour’s time for the following positions: a tech on the road; a salesperson; service guys?

The answer, of course, was yes, yes and yes. But when he asked “What’s an hour of your time [company owner/executive management] worth?” The answers were more tentative.

“You have all the metrics in the world, except this one,” Boucherle said.

Boucherle did offer a formula to determine an owner’s hourly value [net profit or equity contributions, divided by the number of equity owners, divided by 160] but his point was that your time is worth a lot, and you need to ensure that you’re spending it as wisely as you would any other business expenditure.

It’s important to determine high-value time investment versus low-value time investment and allocate your time accordingly, he said.

Time doing someone else’s work or getting involved in minutiae is low-value time, he pointed out, so delegate.

It’ll give you more time for high-value work, build your team’s competency, build your team’s confidence and ability to work together, he said.

He discussed the challenge and necessity of letting go of control for business owners, saying you’ve got to keep your ego in check. And while you should expect accountability, you need to allow your team to make and learn from mistakes.

Of paramount importance in all this is a business owner’s ability to communicate. He advised taking time to understand your personal communication style and the style of your employees and then setting up "structured time" for communicating, going through problems, etc. Kind of like professors’ office hours in college … lots of seemingly basic stuff that it seemed like many in the room hadn’t spent time thinking about in a while.

The talk stimulated some interesting discussion at PSA Convention—and, unlike many business meetings I attend--it wrapped up before the scheduled time.

 

Integrator options at ASIS

A special track geared to the physical security integrator will be included
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08/21/2012

PHILADELPHIA—For the second year in a row, the educational program at the ASIS International Conference will include a special track geared to system integrators. The conference will take place here Sept. 10-13.

M&A and your company

PSA-TEC sessions look at measuring a company's growth and prospects for exiting this year
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05/23/2012

WESTMINSTER, Colo.—Thinking about selling your systems integration company this year? What kind of price can you expect for your business?

Integrator insights in Florida

AMAG Technology expands its specifier event to include integrators
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04/09/2012

ST. PETERSBURG, Fla.—Access control and security management systems provider AMAG Technology expanded its annual consultant event this year to include a handful of select integrators.

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