Core Thesis - APi Group Corporation is viewed positively due to its strategic evolution, disciplined acquisitions, and focus on recurring, higher-margin service work, positioning it for long-term value creation [1][5][6] Company Evolution - APi Group has transformed from a small plumbing shop in 1926 into a global safety and specialty services platform, reflecting nearly a century of expansion and strategic reinvention [2] - The company entered a new phase under CEO Russell Becker in 2002, culminating in its acquisition by Martin Franklin's SPAC, J2, for $2.9 billion in 2019 [2] Acquisition Strategy - Franklin's history of improving acquired businesses sets expectations for APi to unlock substantial value through disciplined mergers and acquisitions (M&A) and margin expansion [3] - At the time of acquisition, APi operated over 40 businesses in essential services, including fire protection and HVAC, and has since shifted towards higher-margin service work [4] Strategic Shift - The company accelerated a strategic shift towards recurring service work, particularly inspections, which improved customer retention and reduced reliance on low-margin contracts [4] - This transition has positioned APi to consolidate a fragmented market, capturing smaller, recurring jobs efficiently [4] Financial Performance - APi's organic growth strategy is complemented by disciplined acquisitions, with a notable purchase of Chubb for $3.1 billion in 2021, which doubled its scale and increased service revenue above 50% [5] - The company targets a long-term EBITDA margin of 13%, a service mix of 60%, and an 80% cash conversion rate, with projected revenues exceeding $7 billion in 2024 [5] Market Outlook - The bullish thesis on APi Group remains intact, with a focus on its inspection-led recurring model and disciplined acquisitions, contributing to steady margin expansion [6]