PPavionExecutive Cockpit

Value Creation Plan

The Wind Point owner's view — entry → today → exit, the multiple-expansion that recurring revenue earns, and the synergy programs behind it.

Pavion · FY26 (modeled)
#4 SDM Top Systems Integrators (2025)
2,800 employees · 70+ US sites · 23 countries
Executive read· the answer, then the moves

Enterprise value has gone from $104M at entry to $1.28B today; $1.73B of the plan remains to the $3.01B exit. The prize is multiple expansion — push recurring mix from 40% toward 45% and bank the $17M of open synergy before exit.

4 of 4 headline metrics improving vs prior · still off target: Adjusted EBITDA $116M vs $120M, Adj. EBITDA Margin 14.8% vs 16.0%, Recurring Revenue Mix 40.0% vs 45.0%

Do now — ranked by urgency
  1. 1
    Capture the $1.73B of value remaining to exitWatch
    Why it matters

    $1.73B of enterprise value stands between today's $1.28B and the $3.01B exit plan — the swing that realizes the Wind Point thesis.

    What's driving it
    • EV $104M → $1.28B today → $3.01B exit
    • $1.17B created, $1.73B remaining
    FYI
    • Driven by EBITDA growth and multiple re-rating
    • Recurring mix 40% → Platform (multi-state) tier (8–12×)
  2. 2
    Bank the $17M of open synergy run-rateWatch
    Why it matters

    $17M of $24M run-rate synergy is still to capture — the same work that finishes integration and flips the newest brands to actuals.

    What's driving it
    • Synergy $24M run-rate, $7M banked
    • 1 of 6 workstreams behind plan
    FYI

    Insurance, fleet, purchasing and systems consolidation

  3. 3
    Re-rate the multiple: push recurring mix past 45%Opportunity
    Why it matters

    Reaching the scaled tier (45%+ recurring) is worth 2–3 EBITDA turns — on $116M of EBITDA that is $232M–$348M from re-rating alone.

    What's driving it
    • Recurring mix 40% · Platform (multi-state) tier
    • Monitoring book worth $573M at 40× ($430M–$717M)
    FYI
    • Monitoring RMR $14.3M/mo valued at 30–50×
    • Attach ON-X on every install
💎 Value creation → exitStep 2 of 7 · entry → today → exit value leversStrategy & GoalsEnterprise 360All journeys
🌐 Enterprise 360 modules· on Value Creation PlanBrowse all 31 views ▾
● LiveBuilt forWind Point / Board· thesis progress to exitCEO / CFO· what moves the multipleCorp Dev· accretive M&A in the plan

Wind Point underwrites a Value Creation Plan from entry to exit. Pavion has gone from ~$100M to $785M of revenue; the prize from here is multiple expansion — recurring revenue re-rates the business, and monitoring RMR is valued separately at 30–50×. This is the screen that tracks it.

Data backing: vcp (value-creation plan) · synergy_prog · service_line (RMR) · kpi · industry multiple conventions
Enterprise value · entry → today → exit (EBITDA × multiple)
Entry (2020)
$104M
$13M EBITDA × 8×
Today (FY26)
$1.28B
$116M EBITDA × 11×
Exit (plan)
$3.01B
$215M EBITDA × 14×
Value created · remaining
$1.17B · $1.73B
The plan

Value-creation workstreams

Each lever shown entry → today → exit, with progress through the plan.

WorkstreamLeverEntryTodayExitProgressStatus
Scale the platformOrganic + accretive M&A100M785M1200M
On track
Shift to recurringAttach monitoring / ITM on every install34%40%48%
Behind
Expand marginSynergy capture + operating leverage12.8%14.8%18%
On track
Grow profitScale × margin13M116M215M
On track
DeleverEBITDA growth + cash6×4.2×3×
On track
Re-rate the multipleRecurring-driven re-rating8×11×14×
On track
Why recurring re-rates the business

The multiple ladder

Recurring mix moves the EBITDA multiple. At 40%, Pavion sits in the platform tier — every point toward 45% pulls it up.

Project-heavy installer
recurring mix <20%
3–5×
Recurring-mix operator
recurring mix 20–35%
5–9×
Platform (multi-state) · Pavion today
recurring mix 35–45%
8–12×
Scaled platform
recurring mix 45%+
12–20×

Reaching the scaled tier (45%+ recurring) is worth 2–3 EBITDA turns — on $116M of EBITDA, that's $232M$348M of enterprise value from re-rating alone.

The hidden asset

Monitoring RMR · valued at 30–50×

Recurring monitoring revenue trades on its own convention — separate from, and on top of, the EBITDA multiple.

$573Mmonitoring-book value at 40× ($430M$717M at 30–50×)
Monitoring ARR (ON-X + Central Station)$172M
Monthly recurring revenue (RMR)$14.3M
Implied value @ 30× / 40× / 50×$430M / $573M / $717M

So what: growing the monitoring book (attach ON-X on every install) creates value at 30–50× — far above the 11× the whole company trades at. It's the single highest-return dollar in the plan.

How synergy actually gets captured

$24M of run-rate cost synergy · $7M banked

The concrete programs behind the synergy % — not a slogan, a checklist.

Purchasing / vendor consolidation
One buying team; preferred panel (Axis, Honeywell…).
$9MIn progress
Systems (CRM / ERP / HR)
Standardized platforms; retire legacy ERPs.
$6MIn progress
P&C insurance consolidation
Acquired companies onto Pavion's master policy.
$4MCaptured
Fleet / auto program
Single national fleet & telematics contract.
$3MCaptured
Real estate / office overlap
Consolidate overlapping offices in shared metros.
$2MPlanned

Wind Point's playbook in action: put acquired companies on Pavion's insurance, fleet, purchasing and systems. $17M of run-rate is still to capture — the same work that finishes integration and flips the newest brands to office-grain actuals.