The roll-up thesis: durable growth, margin expansion, recurring-revenue quality, prudent leverage and disciplined capital allocation.
The roll-up thesis is proving out: 3 integrated cohorts delivered +5pts of EBITDA margin and leverage sits at 4.2x against the 5.5x covenant. The remaining value is in the 4 unintegrated cohorts — finish synergy capture before exit diligence prices it.
4 of 6 headline metrics improving vs prior · still off target: Adj. EBITDA Margin 14.8% vs 16.0%, Rule of 40 33 vs 40, Revenue Growth (YoY) 18.0% vs 20.0%
Sets deal capacity and refinancing risk.
4 of 7 cohorts sit below 80% synergy capture; integrated cohorts already show +5pts of margin — the same playbook is unbanked EBITDA until applied.
Hold management to 90-day synergy recovery plan; track at next board meeting.
Synergy at 78% of model; integration 80% complete.
Push subscription/ON-X attach on Integration installs.
Recurring 40% vs 45% strategic target; Integration BU dilutive.
Consistent top-line growth with steady margin expansion.
Proof of the roll-up: EBITDA uplift and synergy realization per acquired brand.
| Acquired brand | Year | Revenue | ARR | EBITDA uplift | Synergy | Status |
|---|---|---|---|---|---|---|
| Firecom | 2021 | $34M | $12M | 9%→14% (+5) | 92% | Integrated |
| DavEd Fire Systems | 2021 | $22M | $8M | 8%→13% (+5) | 90% | Integrated |
| AFA Protective Systems | 2022 | $96M | $52M | 11%→16% (+5) | 88% | Integrated |
| RFI Enterprises | 2023 | $58M | $19M | 10%→13% (+3) | 74% | In progress |
| Integrated Security & Comms (ISC) | 2024 | $41M | $14M | 9%→11% (+2) | 55% | In progress |
| ECD Systems | 2024 | $37M | $13M | 9%→12% (+3) | 78% | In progress |
| Signet | 2024 | $29M | $9M | 8%→9% (+1) | 40% | Early |
Integrated cohorts (AFA, Firecom, DavEd) show ~5pt EBITDA expansion post-integration; newer cohorts (ISC, Signet) remain early with synergy capture in progress.
Covenant headroom funds the continued M&A program; cash generation supports debt service.
High-materiality external signals and competitive M&A from the adapter feed.