As global security threats evolve, customers, businesses, and governments are investing heavily in perimeter security to protect assets, data, and infrastructure. Companies specializing in perimeter security solutions have benefited from these strong, secular tailwinds. 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 with strong organic and inorganic growth prospects. Griffin believes that this trend will continue for the foreseeable future. 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 one of the contacts listed.
Key Takeaways
- Large Addressable Market: The perimeter security services industry is a massive addressable market valued at $24.2Bn with an extensive installed base requiring upkeep plus continuously evolving demand for upgrades and new installation
- Critical Services to a Diverse Set of End Markets: Critical components of customer facilities in almost all end markets. Key end markets driving demand include schools, utilities, distribution and storage facilities, DoTs, prisons, airports, military, industrial facilities, public works, retail, and many others.
- High Fragmentation and Strong Rollup Opportunity: Despite the industry’s longevity, size and long-term growth, the industry remains highly fragmented with most market share controlled by small, family-owned operators, creating a long runway of M&A activity.
- Adjacent Service Offerings: Several opportunities to expand service-based offerings to capitalize on recurring revenue model that has been successful in many other consolidating industries such as HVAC, landscaping, pest control, and fire and life safety.
- New Opportunities for Owners: Interest in this segment from outside investors continues to grow. New buyers entering the space expands the options available to business owners interested in exiting. More opportunities to partner with outside capital and pursue growth have become available to owners as well
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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