Security dealers say independence still delivers an edge

YARMOUTH, Maine – While large providers continue to roll up acquisitions across the security industry, a majority of business owners (70%) say staying independent gives them a competitive advantage, according to a recent Security Systems Newspoll.

“Most innovation comes from the need to be viable AND offer new, extra and unique services to your clients,” wrote one respondent. “New unique and extra services are hard to roll out with a large and scaling business. Independent businesses roll out more innovation and can try more unique solutions.”

Independent providers say they also have the ability to offer top-notch service to customers, something that can get lost as a company grows larger.

“The M&A activity has actually increased our business,” wrote one respondent, who predicts the dealmaking will level off. “The larger companies are providing lower service levels then dealers were getting before and they are actually moving to smaller companies. This roll up is temporary like it has been for the past 50 years.”

Still, the upswing in recent deal activity has providers taking notice – and considering their future plans, with an equal number of respondents (46%) split between selling or staying put.

To sell his business, one respondent said the buyer would need to offer more than a good price.

“Any potential sale would include all staff input as to the outweighing reasons to sell,” they wrote. “Selling would include contractual requirements to maintain customers and the standards that we have set, maintain all staff and benefits while improving customer and staff quality of life.”