M&A activity in the perimeter security industry has seen growing demand from PE investors and strategic buyers that offer strong valuations for scalable platforms. Griffin believes that this trend will continue for the foreseeable future as customers, businesses and governments are investing heavily in perimeter security to protect assets, data and infrastructure. If you have questions on the information presented in this report or how the current market impacts your company’s valuation, don’t hesitate to reach out to the listed contacts.
Key Takeaways:
- Valuations Remain Elevated: Buyer interest continues to outpace the availability of large, differentiated perimeter security businesses.
- Repeat Revenue Matters, Even Without Contracts: While true maintenance contracts are limited, repeat work from national and regional GCs is highly valued. Buyers will be looking for owners to show who their long-term customers are and what the backlog and pipeline looks like.
- Labor Stability Is a Core Risk Factor: Crew availability, foreman depth and wage inflation are central concerns for buyers. Businesses with in-house crews, strong retention and documented training programs command premiums versus subcontractor-heavy models.
- Professionalized Systems Drive Premiums: Robust estimating, project management and financial reporting materially impact valuation. Businesses that can operate independently of the owner can mean the difference between a 6x and 8x valuation multiple.
- Optimal Timing: Perimeter security remains in the early stages of consolidation, creating a favorable seller’s market. This will not last forever, as ongoing consolidation shifts leverage to buyers.
For more information, please contact Thomas A. Hill, Senior Managing Director, at 610.478.2034, or Andrew D. Rudner, Vice President, at 610.205.6102.
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