Despite a bumpy economy, the security industry has been operating in top gear throughout 2013. An unprecedented number of buyers, lenders and new investors are courting dealers and systems integrators. The activity is being fueled by a combination of low interest rates, the security industry’s ability to weather the recent U.S. recession like a champ, and plenty of available capital. The result is a plethora of options for security dealers who are looking to either cash out or take their businesses to the next level.
Security industry mergers and acquisitions (M&A) and financing experts report that they are handling a dizzying number of requests to buy both businesses and contracts. Sales are correspondingly brisk and multiples are the highest they have ever been — in the 40× recurring monthly revenue (RMR) range.