I’ve just finished attending my 21st CEDIA Expo in Denver, Colo. For the first 20 Expos, I participated as the founder of cyberManor in Los Gatos, Calif. This year, however, I attended as a six-month employee of Daisy. In all my previous years at CEDIA Expo, the most common question I received was about the exciting new products on the show floor. This year, the question shifted to, “How is it going with Daisy?” Given the fast pace of the tradeshow, I usually only had time for a quick, “CliffsNotes” answer. But a complete, more accurate response requires much more detail. So, I decided to put my thoughts in writing for my fellow integrators who want a deeper understanding of my personal experience with Daisy, what Daisy has done for cyberManor, and what Daisy aims to achieve for the custom integration channel over the next one to two years.
Setting the Stage
After a thorough yet quick acquisition process, cyberManor was fully acquired by Daisy on February 26, 2024. On that day, my entire team — including myself — became Daisy employees. We were Daisy’s second national acquisition. Under the leadership of founder and CEO Hagan Kappler, Daisy is backed by a seasoned executive team of 24 professionals and an initial round of seed capital. You can learn more about our team here.
The founders of Daisy have extensive experience in building and managing nationally recognized brands in the home services industry, having led companies such as Merry Maids, ServiceMaster, Terminix, and Trane, among others. They strongly believe the smart home market would benefit from a nationally trusted brand, locally supported by the custom home integration channel. Their acquisition of cyberManor — and several other companies across the country over the past six months — has given the Daisy leadership team deep insights into the custom installation industry, its processes, customers, and vendor partnerships. With this knowledge, the Daisy corporate team is developing a compelling franchise model for entrepreneurs looking to start their own smart home installation and services business, or for existing integrators interested in converting their operations into a Daisy-branded franchise.
Securing Staff and Funding
To date, Daisy has completed six acquisitions, primarily in California, Florida, and Connecticut, and launched five franchise operations. By the end of this year, they plan to expand to 20 locations nationwide, with a goal of over 150 locations by the end of 2026. This national footprint will tap into the $29 billion domestic smart home products and services market. Daisy’s remarkable growth extends to its staff as well. On October 1, 2023, Daisy had just two employees. As of this year’s CEDIA Expo, that number has grown to 134 employees — half of whom attended the Expo.
When Daisy acquired cyberManor, the executive team initially used seed funding from friends and family. Over the past six months, Daisy has raised more than $20 million through oversubscribed Series A and B funding rounds from established venture capital firms. This capital is being used to expand their support team, now totaling 28 people, acquire or convert existing custom integration companies, launch new franchisees, and implement their enterprise-grade software stack across Daisy branches nationwide.
Day 1 at cyberManor, February 26, 2024
On the day we finalized our acquisition, half of the Daisy executive team visited our office to introduce themselves and provide an overview to our employees. They shared who Daisy is, the company’s values, why they were interested in acquiring cyberManor, and their vision for the custom installation channel. Naturally, there was some apprehension — many of my employees had been with cyberManor for more than five years, and no one had heard of Daisy before that day. However, as they listened to Hagan Kappler and the executive team explain Daisy’s mission, my team began to see the potential positive impact on cyberManor, our customers, and their own career growth. It certainly didn’t hurt that they were now receiving full healthcare benefits, including vision and dental insurance, as well as a profit-sharing plan and stock options in the new Daisy company.
6 Months Later
It took longer for my employees to fully embrace Daisy’s initiatives than it did to ease any concerns our customers had about cyberManor’s acquisition. After all, cyberManor had been our identity for over 25 years, so the shift was significant for the team. For our customers, the key reassurance was that there were no changes to our installation and service personnel — so as long as the same familiar faces were handling their projects, they were happy.
To ensure a smooth brand transition, our vans still feature the cyberManor name, which is now accompanied by a “Powered by Daisy” decal. Our front office signage and uniforms now read “Daisy, fulfilled by cyberManor.” This gradual rebranding has helped ease the team’s adjustment over these initial six months.
Related: Watching Daisy Grow
I also discovered that as our sales, project management, service, and finance teams interacted more directly with Daisy’s executive team overseeing those functions, they grew increasingly comfortable with the enhanced tools and expertise Daisy brought to the table, boosting both productivity and profitability. Six months in, this transition is still a work in progress, but we’ve made significant strides. By the end of the year, I expect we will have fully implemented Daisy’s CRM and Learning Management Tech Stack, gained full access to Daisy’s remote support team — staffed with highly skilled technicians — leveraged Daisy’s sales tools, realized significant supplier savings, and integrated proposal software along with the NetSuite accounting platform.
Once fully implemented and training completed, we’ll have a comprehensive, end-to-end software backbone for our business. This system will provide a detailed, customized record for each new and existing client, all housed in a centralized, searchable, AI-enhanced database that will include:
- The initial phone call, email, walk-in lead information
- The subsequent follow-ups, including all call and text communications, visits and proposals
- Proposal revisions and acceptances (or losses)
- Proposal designs, products procured and installed, and labor resources utilized over the lifetime of our relationship with each client
- All documents and photos related to any and all projects by customer
- All material and labor associated with any and all projects and services transferred seamlessly for billing and collection to the NetSuite accounting platform
- Service plans, communications, and actions taken during each and every client service visit
- A customized login portal for each client to view their home technology installation documentation, the network health of their system, and all related installation and service visits, including detailed warranty information
The Future: How Daisy Plans to Improve the CI Business Model
Today, the custom installation channel remains highly fragmented, lacking a trusted national brand — a structure that has persisted for over 35 years. This model worked when custom installers served a small percentage of high-net-worth households, designing, integrating, and installing home technologies. However, today’s demand for smart home integration expertise far exceeds our industry’s staffing resources. Smart homes are no longer a luxury — they’ve become a necessity. To meet this growing demand, we need a nationally trained and recognized smart home workforce. As Daryl Friedman, CEO of CEDIA, points out, the number one challenge facing our industry is the lack of consumer awareness and understanding of the custom integration profession and the value it brings to their homes and lifestyles.
Daisy is addressing these challenges head on through the following initiatives across all their branches nationwide:
- A national recruitment and training program to bring more new and young talent (men and women) into the custom installation industry
- A technology stack based on a Microsoft Dynamic’s platform that will serve as the Custom Relationship and Learning Management backbone of our national company that will provide a level of knowledge and consistency that will be used to earn the ongoing trust of our clients
- A nationwide marketing effort that will educate the homeowner on the value of a smart home and having their home designed, installed, serviced by a trusted national brand.
- A trusted 24/7/365 ongoing home technology maintenance program called DaisyCare
The Future Looks Bright
As the weeks and months go by, the cyberManor team and I are increasingly excited about what Daisy has already done for our company. Daisy’s executive team has quickly strengthened our Los Gatos office, recruiting a first-class branch manager and several outstanding technicians. In the custom installation business, we’re only as strong as our team, and Daisy’s brand and benefits program have already attracted some of the best talent in the industry.
Our recent successes, combined with Daisy’s impressive national growth, have lifted our spirits and reinforced our belief that cyberManor’s future is brighter as part of Daisy’s national network of custom home technology integrators. As I approach my 70th birthday this December, I had originally planned to retire soon after the acquisition. I signed a two-year contract with Daisy, and now, six months in, instead of feeling like I need to “get through” the remaining 18 months, I find myself disappointed that I only have 18 months left. Being part of Daisy has re-energized me, and I’m thrilled to continue on this journey to enhance the performance and long-term value of our company.
I think my future pickleball career will just have to wait a few more years.
