Transcript
Introduction
Zack
I'm Zack Fuss and today we are breaking down APi, a leading provider of life, safety, and specialty services to buildings and construction projects. While it's not necessarily a household name, the services the company provides play a vital role in the buildings where we live and work. What started as a small plumbing company in the 1960s has evolved into a global leader in fire protection, security, and building services. 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.
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. Today, over 55% of their revenue is recurring in nature, with a near-term target of exceeding 60%. The business has enjoyed success under the guidance of its CEO, Ross Becker, who has been with the company for over 20 years. Ross started as president of one of APi Group's subsidiaries in 1998 and has been leading the company since 2004, eventually leading the business through its debut on the public markets more recently.