Safeguard: Now public & looking to acquire
SANTA MONICA, Calif.--Safeguard Technology, a small residential security company that serves celebrities and other "high net-worth individuals with high threat levels" who live around the Hollywood Hills, on April 12 completed a reverse merger and is now officially a public company listed on the OTC-Pink Sheets market.
SG Martin Securities in Rocky Point, N.Y., gave Safeguard $1 million in equity financing to become public, expand its product line and explore acquisitions (see the December issue of Security Systems News).
Don Moore, executive vice president of Safeguard, said the company will now aggressively pursue acquisitions. Safeguard, a full service security company, including CCTV installation, hopes to bring " several companies [including home entertainment and other security-related businesses] under the Safeguard umbrella."
Safeguard also moved from Redondo Beach to a new offices here at 2716 Ocean Park Blvd., Suite 1004 at the beginning of April.
Moore said Safeguard's strategy is to "do what the big guys do on a smaller scale," with one exception. Moore believes the big guys, like ADT, "are too short-term oriented, where immediate profit takes precedence over long-term issues ... [Safeguard will] try and take a more customer- and dealer-oriented approach."
As an example of big company short-sightedness, Moore said he's seen first-hand a large company ax an entire customer service department to temporarily boost its bottom line, without really looking at the department or individuals in that department.
In the business in this area for 23 years, Moore is also the owner of Moore Protection, the wholly owned subsidiary of Safeguard. Moore said he knows personally many of the principals of local security companies, and he believes they'll be interested in becoming wholly owned subsidiaries of Safeguard, as well.
They're people who value being independent and who usually have "one part of the business that they really like to do, interfacing with customers, designing systems or the installations," Moore explained.
These people may agree to be acquired, Moore said, because Safeguard will let them retain their independence and their own company name, but will take over the parts of the business that these individuals do not enjoy.
"You never hear them say, 'my favorite part is the hours I spend doing workmen's comp claims or doing payroll or insurance,'" Moore said
If they're acquired, it will "free them up to do what they want to do and feed their top line," Moore said.