Why Security Companies?

Fragmented Sector

Did you know an estimated 10,000 baby boomers are retiring each day? With baby boomer business owners now reaching retirement age, there is an abundance of motivated sellers – some of whom we’re most likely negotiating with right now. Our strategy is to cherrypick the security companies with great track records and sound growth prospects (at a reasonable price).

Recession Resistant

The Security Services is historically recession resistant. Security services will be one of the last things that will be given up in a deep recession. Moreover, part of our strategy is to diversify our revenue as much as possible to prepare for recessions (for example: Diversifying the solutions that we offer by combining and tailoring our services with technological solutions combined with manned and physical services.

Leverage

We can use commercial debt to combined with other government backed options to prudently leverage transactions and increase investor ROI (today, the cost of debt is much cheaper than equity). Our access to low-cost debt financing is growing as we continue to prove ourselves as operators. Banks are looking, more now than ever before, for good operators to entrust with low-cost debt.

Global Demand

With increasing global instability, along with risk factors such as global terrorism and increasing crime rates. The security sector is growing at an annualised rate of 3.8% in the UK alone, placing us in a prime position to grow our capabilities rapidly in this sector.

Technological Innovation

With the constant innovation in the industry and pressure to cut costs and drive up profitability, there is an ongoing drive to incorporate the use of technological solutions in tandem with with manned and physical forms of protection in order to increase the effectiveness of security solutions.

High Returns on Invested Capital

Security service companies have the potential for high returns on capital invested in the business. Our acquisitions prioritise efficient spending on new assets versus our peers. There is a lot less capital required to run a security company versus, say, a car manufacturer. The less capital we have to invest on large machinery and equipment, the easier it is for us to profitably grow revenues. This is another reason we love this sector. This offers our investors a great opportunity to receive a high return on invested capital.