At the close of 2011 fiscal year, SDM reported on an apparent decrease in merger and acquisition (M&A) activity for security dealers and integrators. At the time, however, several industry consultants predicted that the volume of small-to-medium acquisitions would increase significantly in 2012. The end of the second quarter has seen that prediction come true — in spades. Three dealers in the top half of the SDM 100 completed very strategic acquisitions recently, each following a different growth strategy but all presenting a revitalized M&A landscape.
Local and regional integrators that face a choice between expansion and annihilation by the global players have an uphill battle to fight. Facing down the giants requires some intelligent uses of key market principles including: niche identity, co-branding, and planning for modest growth.
It may not have been a full double-dip, but confidence in the security industry appears to be pulling out of its second significant downturn of the past few years.
