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cover of episode APi Group: Safety Services at Scale - [Business Breakdowns, EP.205]

APi Group: Safety Services at Scale - [Business Breakdowns, EP.205]

2025/1/29
logo of podcast Business Breakdowns

Business Breakdowns
AI Deep Dive AI Chapters Transcript
People
A
Adam Wyden
C
Chadd Garcia
Z
Zach Fuss
Topics
Zach Fuss: 我是Zach Fuss，今天我们将深入探讨API集团，这是一家为建筑物和建筑项目提供生命安全和专业服务的领先供应商。虽然它并非家喻户晓，但公司提供的服务在我们居住和工作的建筑物中发挥着至关重要的作用。它从20世纪60年代的一家小型管道公司发展成为全球消防、安防和建筑服务的领导者，通过100多次收购，战略性地建立了一个EBITDA超过10亿美元，市值超过100亿美元的业务。 API集团的业务发展源于其从一次性建筑项目转向经常性收入模式的战略转变，通过提供消防系统、电梯、安全摄像头等的检查和维护等基本服务，产生了稳定的收入流。目前，超过55%的收入来自经常性业务，短期目标是超过60%。在首席执行官Ross Becker的领导下，公司取得了成功，他自1998年起在公司工作，自2004年起担任首席执行官，并带领公司最近成功上市。 Adam Wyden: 我于2011年创立了自己的投资公司ADW Capital。我们曾进行过一些激进投资，但在职业生涯中，我们更倾向于投资由所有者经营的公司。我曾投资过Diamond Resorts，而Diamond Resorts的副董事长恰好是Martin Franklin儿子的岳父。他向我推荐了API集团，称他们擅长打造企业，并在Jarden取得了巨大的成功，他们对这次机会非常兴奋。这引起了我的兴趣，我们自2019年末投资以来，一直收益颇丰。 Chadd Garcia: 我在Ave Maria共同基金担任增长部门经理，负责管理我们的Focus基金，这是一个法律上非多元化的共同基金。该基金约有15个投资项目，API集团是其中规模较大的一个。我参与了Martin Franklin的其他两家公司Element Solutions和Nomad Foods的投资，因此了解了他的经营理念以及他如何通过SPAC收购公司。API集团上市时，我起初并没有太关注，但在疫情期间，我仔细研究了它，并在2020年末或2021年初进行了投资。

Deep Dive

Chapters
This chapter introduces Finley, a debt capital management software designed to streamline credit management. It addresses the operational challenges of managing debt capital, offering solutions for both borrowers and lenders.
  • Finley translates unstructured credit agreements into code.
  • Streamlines covenant reporting, interest and fee tracking, and portfolio analysis.
  • Used by borrowers like Ramp and Innova, and lenders like Trinity Capital and Valley Bank.

Shownotes Transcript

This is Zack Fuss. Today, we are breaking down APi Group, a leading provider of life safety and specialty services to buildings and construction projects. While not necessarily a household name, APi's services play a vital role in the buildings where we live and work. 

With over 100 acquisitions under their belt, they've strategically built a business that exceeds a billion dollars in EBITDA and sports a market cap exceeding $10 billion dollars.  The evolution of the business has come via an intentional shift from one-off construction projects to a recurring revenue model, generating a steady stream of income by providing essential services like inspections and maintenance of fire systems, elevators, security cameras, and more. 

To help us break down APi, I am joined by Adam Wyden) and Chadd Garcia). Adam is the founder and portfolio manager of ADW Capital, and Chadd is a portfolio manager at Ave Maria Mutual Funds. Chadd and Adam will share their insights on the company's competitive advantage and go to market strategy, including its unique decentralized management structure and its strong culture. 

Please enjoy this breakdown of APi Group.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.)

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This episode is sponsored by** Finley**)** - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at**** finleycms.com. **)

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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes).

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)).

Show Notes

(00:00:00) Learn about Finley

(00:05:34) Overview of API Group's Business

(00:08:54) Specialty Services Division

(00:10:59) API Group's Financial Profile and Growth

(00:17:18) Company Culture and Management Structure

(00:23:12) Capital Allocation and Strategic Acquisitions

(00:29:37) Understanding Stock Gains and Share Issuance

(00:30:51) SPACs and Martin Franklin's Reputation

(00:31:19) Challenges and Successes in Acquisitions

(00:32:55) Focus on Inspection and Service Work

(00:35:04) The Chubb Acquisition and Its Impact

(00:37:10) Financial Profile and Capital Allocation

(00:42:09) Valuation and Market Perception

(00:46:47) Lessons from API Group Investment