In the leadup to CEDIA Expo 2024, national smart space integration firm Daisy made some important news, acquiring Denver-area custom home integrator SaaviHome, itself a microcosm of Daisy’s model of growth through acquisition and franchising.

This marks a pivotal step in the company’s growth plan, as they now plan to double their existing locations of 11 by the end of the year, according to CEO Hagan Kappler.

Doubling Locations by Year’s End

In an exclusive interview with CE Pro in a meeting room in the Colorado Convention Center on the first official day of CEDIA Expo, Kappler and her leadership team spoke about the company’s national ambitions, how it prospects companies with which to partner and invest in, how the company attracts talent, its next geographical targets, and its perception of the future of the smart home industry.

The acquisition of SaaviHome added a tenth location for Daisy’s footprint, joining the ranks of cyberManor, First Priority Audio, Integrated Lifestyle Inc., A Shade Above, and more within the Daisy family. The company expects to operate 11 locations later this year with the opening of a Palm Springs, Calif. location. SaaviHome itself had launched a franchise model last year and so far has been able to open one location. Daisy will now take over those operations.

The SaaviHome news coincided with Daisy launching an 11th location expected to open later this year in Palm Springs, Calif. This location is co-owned by Matt Walin, a Daisy franchisee who converted a Costa Mesa, Calif. location to Daisy in February, and Charles Dyer, a career technology executive with an impressive resume including startups and Microsoft.

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According to Kappler, SaaviHome was a perfect fit and complements Daisy’s model of acquiring existing businesses and folding them into the Daisy brand. Now, SaaviHome CEO Gavin Lantzy is joining Daisy to help the company begin launching franchise locations, which is somewhat of a departure from the company’s current model.

“It was very complementary,” Kappler says. “We thought we could help him, and he thought he could help us.”

How Daisy Attracts and Retains Talent

Essentially, SaaviHome now gets the resources of Daisy, including a team of 30 support people, a 24/7 call center, training for technicians, a learning management system, a tech stack for franchisees, marketing and branding, and more.

“I think there was a lot of work and investment we had done that will help to supercharge what he’s working on,” Kappler says.

With aspirations to own and operate 20 U.S. locations by year’s end, Daisy clearly has its sights set on rapid growth in an industry where awareness and talent are sometimes hard to come by.

According to Kappler, there is more than enough demand in what she says is a $30 billion market with about 20,000 companies doing the work of installing and integrating smart home systems.

“There are plenty of companies already out there doing this work, and most of the companies we talk to can’t keep up with the demand,” Kappler says. “So, we think that growth is there. We think the demand is certainly there.”

A pain point commonly cited by integrators in both the residential and commercial markets is the difficulty in finding and retaining qualified talent, especially in technician roles. Kappler and the Daisy team believe they have this issue solved by partnering with recruiting firms, building a pool of talent, and initiatives to attract women into the business.

It also doesn’t hurt that Daisy fancies itself a national brand and has built that brand awareness integrators are constantly chasing.

“That’s the benefit of having a national brand,” Kappler says. “Customers see your truck driving around and they see your ads, but so do technicians.”

Richard Glikes, a longtime smart home industry power player and the former president of Azione Unlimited, joined Daisy as a senior advisor earlier this year. During the interview, Glikes commented on the companies that have made an attempt at a national strategy like Daisy.

“None of them had a core model,” Glikes says. “They were just amalgamating dealers into a single entity and hoping it would be successful. Egos got in the way.”

Sustainable Growth

Kappler and the Daisy team have called themselves industry outsiders, and Glikes says a different way of looking at things, coupled with interest and enthusiasm, is what makes Daisy stand apart from the others that have tried this model before.

“They analyzed the problems and deficiencies and came up with a solution to every single problem,” Glikes says. “To me, it’s very attractive, because I like the concepts and I like the solutions, and now I can kind of be the connector.”

Glikes laid out several Daisy policies that he says make the company an attractive place for jobseekers or those looking to grow their careers.
“They’re going to give you stock options, they’re going to give you maternity and paternity leave, they’re going to give you a path to be a franchisee, they’re going to give you education,” Glikes asserts. “You’re going to be part of a big thing.”

Daisy currently has established locations in Northern and Southern California, and Southern Florida–all historically attractive markets for the custom smart home industry. The company also operates locations in Northern Virginia and Connecticut.

However, the company isn’t just focused on acquisitions. Instead, Kappler and the company want to partner with integration firms to help grow their business, with the opportunity for them to eventually sell the business.

“So, it’s not to say you can never sell your business,” Kappler says. “We’re just saying, partner with us so that can be possible for you. But when we see a great business, great team, and a very attractive market where it makes strategic sense to do an acquisition or to franchise, that’s a great fit for us.”

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