$436M more profit a year and $200M of one-time cash — from the business Pavion already runs.
Five moves do it, no acquisition required. Two lift profit — cross-sell (move 1) and finishing the integrations (move 2) — taking profit from to $2.34B, margin 21.4% → 23.9% and the Rule of 40 (growth + margin, investors' health test) from 39 to 42. Two free cash — collect faster (move 3) and pay smarter (move 4) — releasing $200M to fund the next deal. One protects the lead (move 5). Each card says exactly what you do and what changes.
Sell a 2nd or 3rd service into the $3.50B of accounts that buy only one — led by the 26%-growth data-center segment.
These are existing, credit-cleared customers already renewing at 105% — a second service is sold through the standing relationship, with no competitive bid and a far higher win-rate than a new logo.
Finish merging the four newest acquisitions onto one back-office, one purchasing desk and one sales motion.
Not hypothetical: the earlier deals (AFA, Firecom, DavEd) already hit ~90%+ and added ~5 margin points each. The four newest are stuck at 78% — the same playbook on $1.87B removes the duplicate overhead.
Put the slowest-paying acquired units on Pavion's billing discipline and clear the $217M aged over 60 days.
It's hygiene, not demand: ISC (67d) and Signet (66d) collect ~13 days slower than the 62-day company average because they're still on legacy billing. Standardising them frees cash with zero customer impact.
Pay suppliers on the 50-day terms Pavion already holds (it pays in 48 today) and switch on early-pay discount capture.
Pure timing, no renegotiation: terms are already 50 days but invoices clear in 48, and 0% of available early-pay discounts are captured on $2.63B of spend — money left on the table.
Lock in the one-platform advantage with service/monitoring, and use the borrowing room to buy 1–2 more regional players.
Regional rivals sell one or two disciplines; Pavion is the only provider of all four (fire + security + AV + monitoring) as one platform — which is why customers renew at 105%. Debt at 1.3x vs a 5.5x limit leaves room to buy and widen the gap.
Run them in the order they pay back. Cash first (moves 3–4) — $200M lands within six months, needs no new sales, and funds the next deal outright. Profit second (move 2) — finishing the integration of the $1.87B of acquired businesses turns promised savings into +$89M of permanent profit. Growth third (move 1) — the $3.50B of cross-sell compounds for years. Move 5 is the moat that makes the rest stick: the only company selling fire, security, AV and monitoring as one platform, renewing customers at 105% — an edge the regional players Pavion is buying can't match.
Pavion is chasing $2.20B of work, has won $9.10B, and carries $1.80B into next year.
The company is pursuing a and has already won . Because Pavion is , the keeps growing.
The biggest prize is hiding in plain sight: buy one of Pavion's services but not the others. That is revenue the company can win from accounts it already serves — usually without bidding against a competitor.
→ Growth lever · $875M. Mine the base before chasing new logos. $3.50B sits in accounts that already buy one Pavion service — and because they renew at 105% and are already cleared for credit, a second service is sold through the relationship, not a competitive bid, so the win-rate beats cold demand. A 25% take at the 39.7% margin is $347M of profit. Start where the gap is widest: Integration installs go in at just 24% recurring, so attaching monitoring there both wins the cross-sell and lifts recurring revenue toward the 45% target.
Three disciplines, nine verticals — and the demand is tilting to data centers.
Pavion sells through three businesses. Security is the largest at , Fire Safety follows at $3.12B, and Integration — audiovisual, monitoring centers, nurse-call and networking — is the smallest at .
By industry, the pattern is clear: growth is concentrating in a handful of expanding markets. Data centers and technology is both the largest and the fastest, growing , followed by healthcare and government. Retail and corrections are flat. The shift toward technology, healthcare and government is where Pavion should place its bets.
→ Where to grow. Concentrate, don't spread. Data centers are the only segment that is both the biggest (21% of revenue) and the fastest (26% a year) — that combination is rare, so it earns the pursuit capacity and certified-tech coverage rather than the flat retail and corrections lines. The watch-out is mix, not demand: Integration is the fastest-growing business (18%) but sells the least recurring (24% vs 44% in Security), which is what holds the company's 4.6% recurring share below the 45% target. Make monitoring a standard line on every AV/integration deal so growth doesn't dilute the annuity.
Service is where Pavion earns its recurring revenue — and keeps its promise to keep people safe.
Pavion delivers through 35+ U.S. locations across 6 regions and 90 countries, keeping under constant watch. This is the heart of the recurring business: every monitored device pays Pavion year after year — and carries a legal duty to keep it working.
Service quality is good but short of target. against a 99.5% goal, on-time service is 97.5%, and . The number that matters most is how busy the technicians are: at 71% productive time against a 78% target, this is the single biggest efficiency lever in the field.
→ Profit from capacity you already pay for. The field force is a fixed cost whether or not it's billing — so the 7 points between today's 71% productive time and the 78% target is labor already paid for and sitting idle; billing it adds revenue with zero new hires. First-time-fix at 92% (vs 90%) compounds the waste — every repeat visit is a second truck-roll at full cost and no new revenue — so fixing both drops straight to margin. Clear the 11 critical life-safety issues first, though: those run on a regulatory clock, not a financial one.
Where the $8.90B gets delivered — and how profitably.
Revenue is spread unevenly across six regions. The integrated heartland — Mid-Atlantic (HQ) and the Northeast, anchored by AFA (Nyack) and Firecom (Woodside) — carries the margin and reports clean office-level numbers. The watch regions are the ones still absorbing recent acquisitions: the West (RFI, San Jose), the Southeast (Ion247 / ISC) and Mountain & Central (ECD, Signet). The problem there is profitability and data maturity, not demand.
| Region | Locations | Revenue | Share | Health |
|---|---|---|---|---|
| Europe | 13 | $2.03B | 22.8% | On track |
| North America | 12 | $1.87B | 21.0% | On track |
| Asia | 13 | $1.73B | 19.5% | Watch |
| India | 12 | $1.52B | 17.1% | Watch |
| LATAM | 10 | $1.38B | 15.5% | Watch |
| Africa & Middle East | 7 | $363M | 4.1% | Watch |
→ Same root cause as the profit lever. The watch regions aren't a demand problem — they are where recently acquired offices still run on legacy systems, so they post at region level and carry below-plan margin until cutover. The newest (ISC in Birmingham, Signet in Tulsa) are only ~45% on the common ledger; finishing those integrations recovers the margin and turns region-level estimates into office-grain actuals. Leave the integrated heartland alone: Mid-Atlantic and Northeast are 43.8% of revenue, on track, and carry the company's margin. See the office-grain map on the Locations page.
The $410M of recurring revenue is Pavion's most valuable asset — and it grows faster than it loses customers.
Pavion's most valuable asset isn't on the balance sheet — it's the from monitoring contracts on 412,000 devices — now 4.6% of total revenue and rising. And it compounds. At , existing customers spend 5% more each year on average — so the base grows before Pavion wins a single new account.
→ The constraint is attach, not retention. The annuity is already sticky: at 105% net retention the base grows on its own, so keeping customers isn't the problem. The gap is at the front door — only 4.6% of revenue is recurring vs a 45% target because Integration, the fastest-growing business, installs at just 24% recurring: it sells the box but not the monitoring. Make monitoring a default line on every install and one-time project work becomes income that recurs every year — at the highest margin in the book, and the number Pavion's owner values most.
Revenue up 18% and margins improving — but the real prize is cash.
Revenue is , up 18% on last year, with a and (a 21.4% margin). Margins are improving for one reason: as acquired businesses are absorbed, overhead is falling — from 20.5% of revenue toward 19.2%.
Cash is the harder story. Pavion against a 48-day target, and out of $1.32B owed in total. Every collection day is worth about $24M of cash — so closing that six-day gap frees real money to fund acquisitions.
| Month | Revenue | EBITDA | Margin | Bookings | Cash collected |
|---|---|---|---|---|---|
| Jan | $714M | $102M | 14.3% | $782M | $680M |
| Feb | $737M | $107M | 14.5% | $816M | $714M |
| Mar | $748M | $109M | 14.5% | $828M | $726M |
| Apr | $782M | $113M | 14.5% | $873M | $760M |
| May | $805M | $120M | 14.9% | $907M | $782M |
| Jun | $816M | $125M | 15.3% | $930M | $816M |
| 6-mo | $4.60B | $676M | 14.7% | $5.14B | $4.48B |
The drag is concentrated, not broad: the slowest-paying acquired units (ISC 67d, Signet 66d) sit well above the 62-day average. Standardising their billing is the fastest path to the $171M.
The 90+ bucket alone is 61.1% of the provision — past-due isn't default, but the oldest dollars carry the risk. Coverage at 3.4% is healthy; the named watch-item is distressed accounts like Staples.
| Account | Open AR | DSO | Risk |
|---|---|---|---|
| Netatmo IoT Assets | $13.3M | 67d | High |
| Data Center Segment | $25.2M | 63d | Medium |
| IBM | $15.7M | 52d | Medium |
| Group Legrand India | $12.3M | 55d | Medium |
| Regional Operations | $7.5M | 59d | Medium |
| North America Operations | $25.6M | 58d | Low |
Work the list top-down — biggest, riskiest, latest first.
Video surveillance is the biggest controllable line — the place to consolidate and negotiate terms.
→ Cash is the bigger one-year lever · $200M. Margin is already climbing, so this year the larger prize is cash — and it's a hygiene problem, not a demand one. DSO is 62d vs a 48-day target, but the drag is concentrated in recently acquired units still on legacy billing (over 65 days); standardising them and clearing the $217M aged past 60 days frees $171M with no customer impact. Paying suppliers to the 45-day terms Pavion already holds adds $29M. That $200M lands within months and funds the next acquisition outright — more than any margin move available this year.
$2.63B of equipment, bought from six core suppliers.
Pavion buys most of its equipment from six suppliers — Axis, Honeywell, Motorola, Milestone, Hanwha and Crestron — totaling . The two biggest, and Honeywell at $658M, are where better pricing matters most. And Pavion against a 45-day target — taking the full terms would hold onto cash longer for free.
→ Cash now, continuity next · $29M. The terms already exist: Pavion holds 50-day terms but pays in 48 and captures 0% of available early-pay discounts on $2.63B of spend — so $29M is sitting unclaimed at no cost to profit. Separately, two of the six suppliers are the weak links on delivery — Arrow Electronics (90% on-time) and Oracle SCM (89% on-time) — and the 26%-growth data-center pipeline will strain lead times; qualify a second source on the most exposed products before that demand lands, not after.
Pavion was built by acquisition — $3.59B of bought-in revenue, now being turned into profit.
Pavion grew by buying companies — 21 of them since 2020, backed by its owner, Wind Point. The businesses tracked here add and $1.44B of recurring income. The strategy is simple: buy a company, then make it more profitable by combining back-office, purchasing and sales. It is working — since purchase — but only have been captured, with the newest deals still early.
| Brand · acquired | Revenue | EBITDA Δ | Integration | Status |
|---|---|---|---|---|
| BTicino · 2021 | $385M | +$57M | 100% | Integrated |
| USystems · 2021 | $249M | +$57M | 100% | Integrated |
| Netatmo · 2022 | $1.09B | +$57M | 95% | Integrated |
| Legrand North America · 2023 | $658M | +$34M | 82% | In progress |
| Legrand India · 2024 | $465M | +$23M | 60% | In progress |
| Legrand Data Center Solutions · 2024 | $419M | +$34M | 80% | In progress |
| Legrand Retail · 2024 | $329M | +$11M | 45% | Early |
→ Highest-return work in the company · +$89M. The model is proven — the 2021–22 deals (Firecom, DavEd, AFA) reached 95–100% integration and added ~$5M of profit each. The four newest, $1.87B of revenue (Legrand, Legrand, Legrand, Legrand), are stuck at 78% of planned savings, with Signet the laggard at 45%. Finishing them banks +$89M of permanent profit — and because the same legacy systems cause the slow billing and the margin drag, it also speeds cash and steadies retention. Put each on a dated 90-day plan and sequence Signet first.
Pavion has turned 21 acquisitions into a single $8.90B company, with $410M of income that recurs every year, operating across 35+ locations and 90 countries. It earns a 21.4%profit margin, keeps 105% of its customers' spend year over year, and carries comfortable debt with room to buy more. The next phase of value comes less from buying companies than from finishing the ones it already owns.
Attach monitoring to every install and chase the $3.50B of customers who buy only one of Pavion's services — lifting recurring revenue from 4.6% to 45%.
Capture the rest of the promised savings (78% → 100%) on $1.87B of recently bought revenue — profit, cash and customer loyalty all improve together.
Cut collection time from 62 to 48 days to free about $341M — money that funds the next acquisition.
of acquired revenue is not yet fully absorbed. Until each of these businesses is integrated, Pavion is leaving savings on the table, collecting cash slowly, and running a higher risk of losing customers — all at once. The whole strategy rests on finishing the job.
Data note: Pavion structural data (business units, brands, customers, partners, geography, SDM rankings, acquisitions) is researched from public sources. Pavion is privately held (Wind Point Partners); all financial figures are modeled estimates anchored to public signals. The "LIVE" indicator and source tags reflect the governed SQLite metric layer that powers this cockpit.