This article originally appeared in the March 2024 issue of Security Business magazine. Don’t forget to mention Security Business magazine on LinkedIn and @SecBusinessMag on Twitter if you share it.
For the past 29 years, Buchanan Ingersoll & Rooney PC has partnered with Barnes Associates to bring together security alarm industry investors, private equity players, lenders, borrowers, business brokers, and buyers for the annual Barnes Buchanan Conference in Palm Beach, Fla. This year's conference in early February focused on the latest trends impacting the industry, and more than 135 companies were represented at the two-day event full of insightful panel discussions, networking, and surely some deal negotiating.
"There are lots of buyers and sellers' representatives there, with brokers like me presenting their companies to various buyers," explains Rory Russell, owner of Acquisition and Funding Services. "Typically, what I find myself doing is presenting my clients' opportunities to potential buyers. It is more of an exploratory mission for me to find out what types of businesses buyers are looking for and what type of money are they willing to spend for good quality businesses."
It is no secret that the security industry – particularly alarm companies and security integration firms – have become attractive acquisition targets for private equity; however, some of these PE executives are still learning about our industry.
“There are a lot of young people working for PE firms that are there listening in and taking notes,” Russell says. “They are all evaluating, getting the facts, and going back to their PE groups to decide if they want to get into this business.”
In that regard, the highlight of Barnes Buchanan is the Alarm Industry and Market Overview, annually presented by Michael Barnes of Barnes Associates. During the presentation, Barnes reported a 9% spike in installation revenue for alarm integrators in 2023, with the highest growth in the commercial segments.
He also reported gross attrition rate was down to its lowest level in a decade.
Another topic at the show highlighted by several presentations was the evolving role of monitoring in alarm company offerings. A full panel discussion on video monitoring featured Chris Brown of Immix, Daniel Forrest of EyeForce, and Markus Scott of EyeQ Monitoring on the future of the technology in both commercial and residential applications. Another panel tackled the topic of PERS with Henry Edmonds of the Edmonds Group and Daniel Oppenheim of Affiliated Monitoring.
In all, Barnes Buchanan serves as a microcosm of the momentum and attractiveness of the industry to investors. “There are just a lot of high-quality buyers, and their funds are huge,” Russell says. “And they are looking into buying up security, fire, and integration companies.
Russell will be available at ISC West for private meetings to discuss buying or selling security, fire and integration business. Contact Stacy Spector to schedule: [email protected].
Paul Rothman is Editor-in-Chief of Security Business magazine. Email him your comments and questions at [email protected]. Access the current issue, full archives, and apply for a free subscription at www.securitybusinessmag.com.
