Last year, AOS Security Ltd was acquired by facilities management company Churchill Contract Services. In this Q&A, we discuss the acquisition process with Darren Read, pictured, Co-Director of AOS and now Managing Director of Churchill Security Solutions, a Hertfordshire-based SIA ACS company.
-From a management perspective, what have been your key takeaways from the acquisition process?
We had taken the decision that it was time for AOS to begin its next chapter. Having pitched the business to ten companies in total, it started to feel like a job interview! This was as much our time to evaluate prospective buyers as it was for them to evaluate AOS’s value as a long-term investment.
The key for us was to find a company who we felt shared our beliefs and values. A company who shared our ideas on the best way to be successful in such a competitive marketplace. Fortunately, Churchill’s co-founders Joel Briggs and Phil Moxom hit the right note with us. Their entrepreneurial spirit was immediately evident. Both displayed a real get-up-and-go attitude that would take the business forward. Taking a purely practical approach – they weren’t interested in getting weighed down in the nitty gritty of contractual obligations. It was clear they knew our work cultures already aligned, and their focus was on getting to know our business, our customers, and the value AOS could bring to Churchill.
As well as this alignment of our values and forward thinking mentality, Churchill offer financial strength and stability, coupled with a vision of becoming not only a leading facilities service provider, but also security supplier. In short: we knew that AOS would be in good hands. Joel and Phil sold the Churchill vision to us and we were delighted when Churchill said they wanted to bring us into the fold.
– What immediate changes were made, and what will be made in the longer term?
After the deal had been done and all the documents had been signed on the dotted line, the immediate changes were actually quite minimal – the majority taking place back of house to our support functions. It was important to us (and to Churchill) that our customers and colleagues were not affected negatively in any way and that business continued as normal. It was Churchill’s priority to make AOS staff feel welcome.
The real change will be in the long term. When Joel and Phil brought AOS on board, they were changing the landscape of the business for a reason. Previously, security would typically be sold alongside existing cleaning contracts as an add on to a current service. With AOS under Churchill’s wing, Churchill Security Solutions is a standalone force to be reckoned with in the sector. As such, we will be introducing a completely new presence for the company over the coming year. So, watch this space…
– What do you forecast will be the biggest changes to shape the security landscape over the coming year?
Understandably, the conversation is saturated by counter-terrorism and cyber-security. I agree that these are, of course, key factors shaping the landscape at the moment. However, I think we need to look inwards at the industry itself and spark some discourse around what changes need to be made to improve contract security across the UK.
Firstly, I’d tackle profit margins. What we currently have is a balancing act between margin and value. I’ve been in the industry for 17 years now and I think that there is no excuse for the fact that it is still a challenge to make a profit. Margins continue to be unjustifiably low – we need to stop the race to the bottom, educate our clients in what we can offer them, and most importantly demonstrate how we can add value to the business. Of course, we know the value of security to our client’s day-to-day operations. We’re not just mitigating risk, often it’s a customer service role – a concierge is frequently the first person a customer meets when visiting a building, and can set the tone for the rest of the visit. Every day, I hear of our staff going that extra mile and doing wonderful things for our clients. But are we communicating this value to prospective clients? No, we’re not. If we don’t reflect the value we see in our services, in our pricing, how can we blame organisations for only caring about the costs as opposed to the value good security can bring to their business.
Churchill will lead by example on this. You simply cannot put a price on security and safety. Our solution will always focus on the value of the proposition and the return on investment. It is time for our industry to be transformed. We need to move away from outdated and restrictive practices that hold us back. The future is “Ours not Hours!”
– What do you see as the biggest opportunities for the security industry?
I think if the industry evolves in the way I hope it will, there’s scope to make some really positive changes. By moving away from a focus on price to that of a reward for a clear return on investment – companies will have the incentive to invest back into their overall security solution. This allows us to offer more attractive rewards and benefits, professional training and clear career development for our people. Working together in this way allows us to develop smarter solutions alongside our customers. Introducing innovation through the best combinations of our people, technology and expertise.
– What have you found are the advantages, opportunities, and challenges shifting from an independent, specialist provider to that over a larger multi-service provider?
We now operate within a much larger organisation, so there are more stakeholders, communication channels and formal processes and procedures to consider and follow. That said, I have been impressed with Churchill’s agility and flexibility to make quick strategic decisions with minimal bureaucracy.
The primary advantage has been the opportunity for us to grow our business, and offer clients not just security, but also a full suite of FM services. With Churchill’s financial backing and expertise across the FM spectrum, we now have a greater ability to invest and deliver against our future strategy in a way which we simply couldn’t consider before. Another positive is of course the combined revenue of AOS and Churchill has placed us onto the list of one of the UK’s top 30 security companies. We’re a combined force that fully intends to “shake” things up in a positive way in the coming years.
