Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.
Issue link: http://sdi.epubxp.com/i/209760
Not All Qualify There are companies SDI has looked at that they decided not to acquire. "With the LLR Team, SDI had identified more than 50 potential candidates for acquisition activity that fit our initial profile," Gupta says. He says the list was "down-selected" when organizations did not meet certain criteria. First on his list is what he calls "Culture Fit" — a meshing of professional services and client commitment. They also were looking for firms that complemented existing SDI service offerings and would expand SDI's geographical and/or client base. Among the other factors were a need to find acquisitions with annual revenue greater or equal to $12 million, ability to maintain long-term contracts, a record of consistent revenue and profit growth over time, and demonstrated opportunities to sell additional services within the company's existing client base. Even in a business as far-spread as the security integration field, it takes some doing to find potential acquisitions that meet all of those requirements and will help expand on SDI's basic business direction. Getting Started SDI originated as the in-house technical staff within Environmental Systems Design Inc. (ESD), an engineering firm in Chicago. In subsequent years, the information services division was sought after to provide standalone technology services to local governments, utility clients and businesses in the real estate, health care and finance industries. On Nov. 22, 1996, the information services division emerged from the parent company as SDI (System Development Integration LLC) with a mission focused exclusively on providing information technology solutions and advisory services. "SDI has a core competency in successfully managing long-term contracts with our clients, delivering exceptional client care and value-add engineering/advisory services," Gupta says. Gupta himself worked for ESD in electrical systems engineering and information technology. He saw the pending big move to digital and IP for the security industry. "The business is more than hanging cameras," he says. "It's helping customers with workflow and how to manage their security environment." That environment becomes more dynamic every month. He actively avoided the conundrum some companies face in deciding whether to be a product provider or a true systems integrator. "A company has to go beyond construction to IT, managing change, managing the process," Gupta says. "We are not a product provider. We feel a need to be the best integrator offering IT management, consulting and change management." Making the Merger To help ensure a smooth and structured approach to the acquisition process, SDI put together a dedicated integration team that is responsible for implementing the company's oft-tested integration plan. In advance of the close, the team identifies how best to combine personnel, functions and departments, along with a prioritized timeline for these areas once the acquisition was officially completed, Gupta explains. Merging company cultures is not a one-way street and not an instant fix. Upon close of the acquisition, SDI immediately presents as much information as possible to all legacy and new employees as part of its system to move forward with important action items and fully "The business is more than hanging cameras. It's helping customers with workfow and how to manage their security environment," says David Gupta, SDI's founder and CEO. "We feel a need to be the best integrator offering IT management, consulting and change management," CEO David Gupta explains. www.SecurityInfoWatch.com | SD&I; | November 2013 53