PE in security: Poll reveals concerns

YARMOUTH, Maine — Private equity (PE) made waves in the security industry in 2025 with several high-profile acquisitions and a flurry of smaller deals consolidating companies under investment firms. But according to the latest Security Systems News (SSN) poll, what benefits investors may not always benefit the industry. 

The push for private equity has been driven by the opportunity for companies to access larger amounts of capital to fuel growth, as with high profile acquisitions made last year like Simplisafe, AMAG, and Netwatch. In the case of smaller acquisitions like those regularly made by Pye-Barker however, it may be the security of a bigger tent in an increasingly tumultuous market. 

Mixed views on PE’s role 

Poll respondents expressed skepticism about PE’s influence on established security manufacturers and software providers. Nearly 39% said PE firms prioritize financial returns over the needs of integrators and customers. 

“Seems to be profit at all costs,” wrote one participant. “Limited choices. Not good for any industry.” 

Still, 26% of responses were positive, citing PE’s ability to inject capital and accelerate innovation. 

“Ultimately, PE investment is a positive force when focused on sustainable, long-term value creation rather than purely financial returns; when that balance is lost, it becomes a legitimate cause for concern,” one respondent wrote. “The status quo is our biggest competitor, and our clients in private equity tend to challenge long-standing assumptions regarding innovation, talent, compensation/incentive. Yes, there can be cultural disruption, potentially impacting service quality and long-term relationships.” 

Top concerns: short-term focus and leadership turnover 

When asked about their biggest concerns following a PE acquisition, 52% of respondents cited short-term exit strategies over long-term stability. Other concerns included: 

Leadership turnover and loss of institutional knowledge (21.7%) 

Pricing increases or less favorable channel terms (17.4%) 

“(I’m) uncertain of the impact as a plus or minus,” wrote one respondent. “Obvious money/profit play, but at what cost? Have watched upper management roles filled, but leaders do not understand the industry – over 20 years in a unique industry where wisdom matters.” 

Consolidation vs. volatility 

Despite the negative sentiment, 21.7% of readers believe continued PE investment will strengthen the industry through consolidation and scale. However, 52% also expect increased volatility as companies are bought and sold. 

“In the recent past, private equity transactions have grown and will apparently continue to be considered as reasonable alternatives for security service enterprises,” one respondent wrote. “The scale and other differences between publicly owned companies and privately owned firms (financial regulatory issues, capital requirements, EBITDA metrics, growth and management strategies, etc.) will necessarily be focused on short-term goals.”