Chad Connor started Affordable Fire and Safety in 1998, building a family-owned company that installed commercial and residential fire safety equipment. Over two decades, AFS became a trusted name in the industry — but by the time Chad brought in outside help, the business was carrying an underperforming division, tight cash flow, and no clear plan for what came next.
“I hired John with WBCG in February of 2019. We now have much better cash flow, we just had our best month ever (both top and bottom line) and we believe that better months are in our future,” said Chad Connor, Owner of Affordable Fire and Safety. “John’s team will provide a business with the resources needed to grow. We meet weekly and it forces me to focus on my business and not just get wrapped up in the day-to-day. Now that we are getting a firm grip on establishing our processes, my stress level has decreased dramatically and I’m starting to enjoy my business again.”
A Business With Room to Improve
AFS needed help across several fronts at once. Operations, processes, and procedures had room to tighten up, and gross margins and cash flow both needed attention. The company’s construction division was underperforming, dragging on overall results, and there was no exit strategy in place despite Chad’s long tenure running the business. Revenue performance needed improvement, EBITDA and business valuation were both low, and the company’s culture needed real investment.
Fixing the Fundamentals First
Waters Business Consulting Group leaned on John Waters’ own experience operating, building, and growing construction businesses, applying it directly to how AFS managed jobs and job costing. The team established a baseline for days of sales outstanding (DSO) and worked with the entire team to track the leading indicators that would move that number — and the cash flow behind it. Key performance metrics were tied directly to performance-based compensation plans, giving technicians a real incentive to improve efficiency. Alongside the numbers, the team worked with AFS to refine workflow processes across the organization.
Better Margins, a Bigger Service Business, and an Eventual Sale
The results showed up quickly and then compounded. DSO improved from 46 days down to 35 days, driving cash flow improvements substantial enough that Chad was able to take a full month away from the business — something that would have been unthinkable before. The team also worked alongside Chad to hire a qualified new Operations Manager, and today AFS has stronger people and a stronger culture, built on real standards for technicians.
An Efficiency Tracking Board helped technicians become more productive, driving up gross margins. After identifying the construction division as a drag on the business — its low gross margins were working against AFS’s growth goals — the team helped Chad make the strategic call to close it and redirect those resources into the Service division. That division has since doubled in revenue, and gross profit margins trending toward 40%. Waters Business Consulting Group also worked with Chad on a strategic buyout plan with his business partner, continuing to grow toward a $10 million annual revenue target.
The strength of that turnaround ultimately made Affordable Fire and Safety an attractive acquisition target, and with Waters Business Consulting Group’s help, the business was successfully acquired by Marmic Fire & Safety in 2021.
Ready to Fix Your Fundamentals?
Sometimes the biggest growth opportunity is cutting what isn’t working and doubling down on what is. If your business needs a clearer picture of its margins, cash flow, or exit strategy, a free consultation is the place to start.
Contact Waters Business Consulting Group to schedule your free consultation.
