John Robuck, managing director, security finance at Capital One, discussed key industry metrics and trends. Among the topics, he laid out why debt can help drive additional growth, and what a lender is looking for in a borrower. Here are few bullets points of interest he touched on:
- A significant majority of the market is still held by small security dealers.
- Attrition is the most important metric when valuing a company.
- The security alarm market is estimated at $55 billion. Installation and other revenues ($28 billion) are said to be growing ~4% YoY, and monitoring and service revenue ($27 billion), ~7% YoY
Robuck strongly advocated that companies of all sizes seek advisement from business peers.
“A board of advisors is important , even if your are not going to be formalized. This helps companies think outside the box,” he said.
A company with, say, $500,000 of RMR may want to meet informally on a regular basis with 2 or 3 advisors. Whereas larger firms are best suited to create an actual board to interact with, he explained.