December 1, 2007
ASG Security, Beltsville, Md., must be doing many things right to be an SDM Dealer of the Year honoree for the second year in a row. “We’re getting better with time,” maintains Bob Ryan, vice president of sales and marketing about the company, which was founded in 1999 under another name and received new owners in 2002. “If you look at commercial capability in terms of sales and technical expertise, we are becoming more and more productive. We expect next year we’ll be even better than we are today.”
Joseph Nuccio, ASG’s president and CEO, agrees. ASG ranked 15th in recurring monthly revenue in this year’s SDM 100 and 16th in total gross revenue.
“We’re very much on track in 2007 and will exceed our expectation,” Nuccio says of the company’s growth, which he estimates will be 38 to 40 percent rather than the 32 percent originally predicted.
Last October, ASG completed a recapitalization with Parthenon Capital. “We basically recapitalized our company for future growth and infused more capital and more bank credit to really go out and become what we want to be,” Nuccio explains.
“I think we’re going to continue to grow over the next five years and double and maybe triple the size of the company,” Nuccio predicts. “We think the business climate is very good for future acquisitions and continued internal sales growth within our commercial and residential sectors.”
Recent acquisitions by ASG include Accutech Systems Inc., Rockville, Md., which has a large government customer base, in December of 2006. During 2007, three Texas security companies were acquired, including Abbot Security in February.
“We’re very picky on who we look at,” Nuccio says about acquisitions. When ASG acquires companies, it uses a best practices approach to blend the companies’ cultures.
“We’re a service company,” Nuccio adds. “We don’t manufacture products. We pride ourselves on providing a high level of service and have an outstanding array of employees. That’s what I feel is the secret sauce. That’s the recipe on how good companies succeed, by being very consistent in their delivery of services to customers.”
Nuccio characterizes the company’s conceptual thinking as “superregional.” ASG has locations in Texas, Maryland and Pennsylvania that serve more than 77,000 residential, small business, commercial and government customers.
The company’s mix is approximately 47 percent commercial, but Nuccio says he would like to increase that to a 50:50 split in the future. ASG’s goal is to transform itself from a traditional alarm company into a well-balanced total services provider to the commercial, government and residential sectors.
“We’ve always been about 50 percent internal growth and 50 percent acquisition,” Nuccio reports. “We’ll still stay within those mixes.”
At a GlanceASG Security, Beltsville, Md.
Number of full-time employees: 411
Revenue: $40.54 million in 2006
Recurring revenue: $2.49 million