Security M&A boom spurs need for better seller preparation, experts say

DENVER—With mergers and acquisition activity in the security industry setting a record pace, Kelly Bond and Marc P. Katz say sellers need to understand the work, timing and preparation required to successfully complete a deal. 

Bond, partner at Bridgepoint Advisors, and Katz, attorney-at-law at the Law Offices of Marc P. Katz, have spent years helping owners, dealers and integrators navigate transactions. They’ll share their insights in a session, “The Maze of Mergers and Acquisitions – Navigating the Pitfalls Early for an Outcome of Success,” at PSA TEC 2026 on April 22 at 11:45 a.m. MT. 

“We’ve been there, done that,” Katz said. “We want people in the industry to understand where they can hurt themselves and how to prepare before they start a process.” 

“You go through this process once,” Bond added. “If we can instill anything before they begin, the better. Otherwise, they’re shocked at how much work it takes.” 

A shifting landscape 

Private equity continues to drive strong M&A activity, often creating unrealistic expectations for owners sizing up their potential value or comparing themselves to peers. 

“Owners see the multiples they think they hear and create expectations that are completely unrealistic,” Bond said. “I explain how transactions really work so they’re not disappointed when things don’t look like the deal their friend across town got.” 

Katz added that because press releases rarely list purchase amounts, sellers often fill in the blanks with wishful thinking. “We get a lot of unrealistic expectations. We have to explain, this is what the marketplace really looks like,” he said.  

At the same time, the influx of buyers has made the space more attractive than ever. “I feel like the security industry is the prettiest girl at the dance right now,” Bond said. 

What makes security M&A different 

While M&A fundamentals mirror other industries, the security sector’s reliance on recurring monthly revenue (RMR) adds complexity that many sellers and first-time buyers aren’t ready for. 

“RMR deals are very different,” Katz explained. “A lot of industries don’t have recurring revenue at the center of their valuation model. As more deals have gone to EBITDA (earnings before interest, taxes, depreciation, and amortization), those look more typical – but when it’s an RMR deal, the structure and language are different.” 

Bond noted that even integrators – traditionally more EBITDA-focused – are being pushed toward recurring revenue by today’s buyers: “I’ve seen that shift. Buyers want recurring revenue to be part of the overall revenue mix,” she said.  

Dig in for the duration of a deal 

Timing and readiness also remain top pitfalls. 

“Sellers think it won’t take long, that it can get done in a month,” Katz said. “Then they see the buyer’s request list and say, ‘Why do they need this?’ Well, they do.” 

Bond recalled a seller with $400,000 in unclear expenses. “They had no idea what was personal or business,” she said. “We had to take them off the market.” 

Preparing long before a sale 

Bond and Katz will outline tools owners can use to prepare early – contract reviews, financial cleanup, internal reporting, and established documentation systems – long before going to market. 

“This is their retirement,” Bond said. “They need a plan.” 

Katz added that early preparation reduces stress and cost. “You have to do some homework,” he said.