Re: ADT-Broadview reaction

[Jim Rojas <jrojas@xxxxxxxxxxxx>]

tourman wrote:
> On Jan 29, 8:07 am, nick markowitz<nmarkow...@xxxxxxxxx>  wrote:
>> On Jan 28, 7:13 pm, Jim Rojas<jro...@xxxxxxxxxxxx>  wrote:
>>
>>
>>
>>> Industry Reaction Rolls in on ADT/Broadview Deal
>>
>>> By Kevin Campbell at SDM Magazine
>>
>>> It's not that often, especially given the current economic climate,
>>> that two major national players in an industry get together through
>>> acquisition. Yet, as it was widely reported last week, that's exactly
>>> what happened in the security industry as number one ADT acquired number
>>> two Broadview Security for $2 billion.
>>
>>> Now that the dust has settled and folks have had some time to reflect on
>>> the deal, the reaction to last week's announcement seems to be a
>>> positive, if not surprised, one. How the two biggest national players in
>>> the industry kept their big deal a big secret we may never know. But
>>> what some of the experts SDM has spoken with have said is that, in the
>>> grand scheme, it's good for the industry.
>>
>>> "We've seen periods or cycles of consolidation in the industry over the
>>> years, and both then and now I think what it really does is reinforce
>>> the value of RMR with the investment community that watches our space,"
>>> says Jim Callahan, chief operating officer of Ackerman Security Systems,
>>> Atlanta. "The result is that the industry has always gotten stronger. So
>>> we certainly see nothing negative; only positives coming from it."
>>
>>> Others view the deal from a competitive standpoint. Fewer competitors
>>> can mean more business for other dealers. But other benefits come along
>>> with it, too.
>>
>>> "For the rest of the industry, it's good. It's just one less competitor
>>> out there, and a big one," says Bob Bonifas, CEO and chairman of the
>>> board of Aurora, Ill.-based Alarm Detection Systems Inc. A big one,
>>> indeed. And that may become a factor for many security customers, says
>>> Lessing Gold, a partner with the legal firm Mitchell Silberberg&  Knupp
>>> LLP and SDM's legal columnist.
>>
>> I come now not to praise Broadview but to bury it.
>> who did not see this coming. thats the name of the game now get so big
>> then sell to tyco.
>
> RHC: It will be interesting to see if they decide to keep the Brinks /
> Broadview name in place, since this acquisition is only being done by
> the executive to improve Tyco's balance sheet. Either way, it's not
> likely to affect service quality to the customer in any positive way
> for either company, so I think the market will remain pretty much as
> is. Usually consolidation comes with confusion on the part of the
> buying company acquiring the other company, as they struggle to mesh
> the two operations. That only bodes well for the 85% balance of the
> market held by independant companies, as ADT Brinks attrition rates
> continue unabated, leaving us even more opportunities for
> takeovers...
>
> Such is life in the world of big business....

ADT is like a vulture...they will pick it clean and leave no trace. The
Broadview crews are all in serious danger of unemployment. ADT does not
like trained monkeys that can only work on a handful of proprietary
panels. All those BHS panels will be sold as scrap, or fill up many
local landfills. I guarantee you none of the BHS panels will be on ADT's
approved list of acceptable panels.

Jim Rojas