The security industry is changing! In fact, it is changing so fast, it’s hard to keep track of it all.
Pye-Barker keeps adding to the list of great companies that they have acquired. In fact, the growth is so exciting that you hear rumors such as, “Pye-Barker is looking for a buyer willing to pay in the billions of dollars,” and you know that that’s not just a hallucinatory thought one of the executives is having. It’s real!
And that’s not taking into account any activities from other companies looking for entrée into the top three industry giants. It’s for real! If the numbers of companies you hear in the industry is correct, that only leaves 14,970 companies to acquire. And I’m not betting that it won’t happen.
No question: the security industry is changing.
What Are the Opportunities?
But you may not be as concerned about the changes in the industry as much as you are about the opportunities that these changes represent.
Let me assure you there are an awful lot of people in the industry puzzling over what their next move will be. Buy? Sell? Look to be acquired? Look to acquire? Do nothing at all? And a whole lot of other options that are just waiting for somebody to come along and create a whole new paradigm in the industry.
I freely admit that I don’t know. But what I do know is that there is going to be a whole lot of movement in the industry, a whole lot of money is going to change hands and probably, by this time next year, we won’t even recognize the industry as it has become.
You might question how this happened. Very simply, a whole bunch of very bright people found that, instead of looking at reasons why big things wouldn’t happen, they thought of all the things that could happen if they moved fast enough to overwhelm the industry before anybody could figure out a plan to change that.
To make the situation worse, we are entering the trade show and financial seminars season, and there will be a significant portion of the industry in these meetings. Many of the people there will be bemoaning the question “what to do…what to do….”
Seeking the Answer in a Changing Security Industry
Knowing this was going to happen, I decided to devote a good portion of my column-writing time to seeking the answer. Here’s what I came up with.
None of this is proprietary, and certainly things have a propensity to change. However, if there are no changes, here are some questions that I think you could ask the major players in this industry. You might not like the answers, but there are answers there. So, let’s go!
“I missed the warning signs of what was happening. How can I become a player at this stage of the security industry’s growth?”
“I have put together a small investment, and I would like to give it to you for my belief in what you are doing!”
“Let’s say I put together a group of small alarm companies that would like to join forces with you. Any opportunities?”
“Should I hire an investment counselor who is intimately familiar with the industry and the financial opportunities within it, listen to his or her advice, and then do it?”
“Let’s say a rich uncle of mine just passed away and he left a considerable amount of money to me. Do you think I should invest the money of these growth companies?”
Being a Player
I’ve been in this industry for around 50 years, and I’ve done a lot of things. However, I can say this with absolutely no hesitation and no fear: The first thing you should do is decide if you want to be a player in this new addition to the alarm industry.
Secondly, decide what your financial resources are, or could become, if you choose to wait for the right moment and make your move. Then, take a look at the company you’re with now, pick up a pad of paper and make a list of all the things you’re doing right, a list of all the things you would like to change and decide if there is an opportunity in that list.
Next, if there is an opportunity, talk to as many people as you can who are knowledgeable about financial management and find out if you really are a potential player. Finally, take a hard look at the industry as it is now, or as you’re pretty sure it’s going to be.
Talk to people in the industry, ask hard questions and be ready for tough answers. Good sailing!
