By: Bob Ricucci, Rapid Fire Safety & Security
Although Godfather 3 is a mere shadow of the first two epic films, one quote that resonates for many of us fans of the series that interestingly continues to apply to our world is: “Just when I think I’m out, they pull me back in”. Such is the nature of life in the Security and Fire Life Safety industries and has certainly been my path, one for which I am grateful.
This industry is lucrative and populated by terrific people, and a career which has proven to me to be a meaningful and rewarding one.
My journey began about 40 years ago when my father started an alarm company, VidAlert, during the time I was in college. Interestingly, his vision at the advent was not from any previous experience, but because he felt he was entering a growth industry.
What has transpired since those days has proven him to be right. Going back to the beginning, we included some guard and patrol to our suite of services, but we quickly learned that technology was the way forward – even engaging in the earliest iterations of Remotely Monitored Video.
After a few years, I did try my hand in Los Angeles as an actor, but again, the siren song of the industry – and a need to make money – thankfully pulled me right back in.
After a time at Network Multi-Family and Diebold, I was blessed to join Protection Service Industries, where, under a great mentor, Larry O-Toole, I developed the strategic and leadership skills I still use today. During my time at PSI, I worked my way up to CEO, where I spent several years in that role running the 10th largest company in the industry.
While that time was very rewarding, I felt the pull to be more entrepreneurial and to “own the show”. So, at the urging of my friend Mike Matson, I took the leap and started Advanced Security Technologies with some top industry folks.
At the time, I was asked “why leave PSI, take the risk and start from scratch to build another company?” The answer was simple, I wanted to “bet on us” no matter win or lose. Either way, I was good with the result. As many of you know, in starting something new, often the plan “dies on the table” several times, requiring constant effort and nurturing before the endeavor even gets going. Such was our experience, but what made the difference was the will and commitment of a talented and supportive team.
We had adequate capital, which is critical, but without the right plan, a capable team, and a daily passion for executing our organization strategy, it would not have been enough.
And so, we built Advanced Security Technologies into a very strong company. How did we do it? We were intentional about our business plan. I am a very big believer in Strategic Planning and understanding not only what success looks like to you, but also how to achieve it in a way you can repeat it time and again. Understand your business model and articulate it to your team – often.
Know your strengths, your key metrics and the culture you wish to create and leverage your organizational strengths to best effect. That’s the value of “organizational psychology,” as everyone is aligned. Then, you identify and track your Key Performance Metrics early and drive your business accordingly.
Using those values, some specific areas which we focused on included:
- Installations with margins and RMR on every sale possible, all relevant services
- Achieving Growth in Average RMR per Site with Strategic Solutions
- Developing a talented and committed team of employees and leaders
- Forecasting to stay 90 days ahead of concerns and capitalize on opportunities
- Most importantly, we drove a “Total Solutions” approach to your business for the best results FOR YOUR CLIENTS
“Total solutions” has become a central message for today’s security businesses. There is immense value in expanding your offerings to be the “one source” for customers and new prospects. By driving as many solutions and services as possible, security companies have an incredible opportunity to drive more wallet-share from their customers, improve customer retention and ultimately serve them better and more completely.
If you act with intentionality, you get results that are predictable and positive. That was the strategic approach we took at AST which allowed us to grow to a top 100 RMR company during our eighteen years where we benefited with strong margins, retention, and EBITDA.
One underrated aspect of the success and growth we enjoyed was that we became involved in joining, participating in and volunteering time with various trade associations within our industry. The time investment in doing so allowed us access to resources that may have not otherwise been available to us, notably seeking out peers to share best practices.
If I can say with certainty the one thing helped our process the most – it was learning from the best. I was uniquely blessed in this area, and that investment made all the difference.
Make no mistake, the time we spent building AST was one of my greatest personal achievements. So why sell? My father used to say, “if you’re not getting better, you’re getting worse”. I reached a point where I needed to take the next major step or just coast to retirement. Once I realized I don’t like golf quite that much, and I am not, by nature a “coaster”, it became clear that selling and seeking a new challenge was the next step.
Many have since asked “how do I prepare to sell?”. From my point of view, the first answer is to “start early”. Begin the process well in advance of going to market.
Focus on maximizing your value in critical areas:
- Know early if you wish to stay on post-sale and in what role
- Maximize your Adjusted EBITDA, identify add-backs
- Make sure your account data and corporate documents are thorough and accurate
- Verify you have accurate and correct Financial Statements and a solid accounting system
- Have strong reporting on your Key Performance Metrics, revenue mix and valuations
- Understand your business model and how it brings and sustains value
- Ask for help if you need it. There are several good consultants to help you
- Know what you want in a buyer
These are a few of the items that will help you find the right buyer at the right value. Once you are ready, you can plan your go-to-market effort, whether with a broker, or on their own, as in my case. Be prepared to settle in for a long and sometimes frustrating process, but always keep your end goal in mind. This will help to move through the process most effectively.
Identifying the right buyer can make all the difference, and for me, that was Rapid Fire Safety and Security. There were, and most certainly still are, many good buyers, but having a wide perspective on the industry provided me the luxury of finding our best fit.
In Rapid Fire Safety and Security, I found an organization with a culture that would not only sustain but enhance the legacy of AST for me and the team. In addition, they helped us realize our unmet potential and let us share in that bounty, with the team staying intact and taking the company to the next level.
I was also able to come aboard as Chief Revenue Officer and work alongside with CEO, and long-time friend, Mike McLeod, who is one of the best in the business.
Again, the industry pulled me back to my roots, and I am now in the latest chapter of exciting growth in the amazing industry. After eighteen blessed years as CEO of AST, I am now with an amazing team, doing what I love, helping build a best-in-class business in an industry that truly matters.
Bob Ricucci has had his professional hands in many ventures and divergent paths in the past 30 years, where he rose rapidly through the ranks of three businesses until becoming the CEO of Protection Services Industries, an $80MM company. During his tenure as CEO, Bob built a reputation across the country as an industry and business expert, business author and speaker, and leader who can get results and build successful organizations, wealth, and stand-out projects.
Over the years, these experiences in operating, building, and marketing these businesses, buying and selling companies, and expertly generating consistently successful results have been invaluable in allowing Bob to hone his skills and instincts, all in service of his clientele.
Rapid Fire Safety & Security is a leading provider of integrated fire and life safety solutions, dedicated to delivering advanced protection systems, professional service, and strategic innovation for clients across diverse sectors.
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Frequently Asked Questions (FAQs)
1. What inspired Bob Ricucci’s journey in the security industry?
His father’s decision to start an alarm company during his college years inspired his lifelong connection to the field.
2. What is the “Total Solutions” approach mentioned in the article?
It’s a strategy where security firms offer end-to-end services to deliver comprehensive solutions for clients and boost customer retention.
3. How did Advanced Security Technologies achieve its success?
Through intentional strategic planning, data-driven key metrics, and a strong team culture focused on repeatable success.
4. Why did Bob Ricucci decide to sell AST?
He sought a new challenge after achieving sustained success and wanted to ensure the company’s legacy continued under the right buyer.
5. What role does Bob Ricucci currently hold?
He serves as Chief Revenue Officer at Rapid Fire Safety and Security, working alongside CEO Mike McLeod.
Source: rapidfiress.com
https://security.world/where-purpose-abounds-in-the-security-business/