PHOENIX—After closing on a $5 million line of credit with The PrivateBank, Titan Alarm bought one company and plans to buy another before the end of the month.
In its first acquisition of 2016, Titan bought Arizona Fire Test. Both companies are located here.
Titan CEO Mike Proudfit told Security Systems News that securing the credit line allows for future growth opportunities for the company in the local Arizona market.
“Arizona has a large need for a company that understands and deploys surveillance, access control, fire and burglar alarm systems, all under one roof,” Proudfit said. “It really just takes getting the ball rolling, and once we are known as a buyer here in the valley, things will start to come our way as far as referrals.”
With the purchase of Arizona Fire Test, which has specialized in fire alarm installation, tests and inspections in the greater Phoenix area since early 2000, Proudfit said that Titan can “circle back with their customers, and not only do fire, but we will do access, surveillance, security, maintenance and test inspection, and be a one-stop shop for all of these customers in the valley, where there are very few local companies that can do that and do it well.”
“We foresee ourselves as a company being nearly double our size within two years, and that will come from organic growth and through acquisitions,” Proudfit said.
He added that this growth would significantly drive RMR and revenue. “With these acquisitions going through this month, we will be closer to $155,000 in RMR, and we hope to double that within two years. And for installation revenue, we should far surpass the $2 million installation revenue mark this year, which is a big jump for us, as it has grown significantly—30 percent or more per year—for the last few years.”
Proudfit said Titan is focused primarily on purchasing assets, not companies. “When we say purchasing assets, we are talking about an agreement that not only includes equipment, vehicles and RMR but employees as well, and we love finding good employees.”
Proudfit said Titan differs from other buyers who “just want the RMR, whereas Titan wants good people. We are looking for a staff that knows the valley, and has created long-lasting relationships.”
Proudfit said Titan Alarm has been growing organically since he and his brother, Titan COO Taylor Proudfit, founded the company in 2008, and is now poised for rapid growth.
“One unique facet to our company that has allowed us to grow is the investment we have made in our staff, and infrastructure over the last six years to get us to where we are today,” he said.
Proudfit said he we would like to close on four acquisitions in 2016. “So we have a great running start for this year,” he said.
One area that is seeing the most growth for Titan is on the commercial side of business. Although Titan’s total customer base is approximately 70 percent residential and 30 percent commercial, “new production over the past year or so is roughly the exact opposite—70 percent commercial and 30 percent residential—as there is a lot more business focus and emphasis on fire, surveillance, access control and intrusion on the commercial side.”Topic: Residential Tags: Titan Alarm, The PrivateBank, Mike Proudfit, Arizona Fire Test