Imperial Capital Releases Review And Outlook For Security Industry

Apr 1, 2008 3:14 PM

According to Imperial Capital, an investment banking group, 2007 started out with stable economic conditions and an abundance of private equity capital available for investment. The blistering pace of merger and acquisition (M&A) activity witnessed in the first half of the year suggested that the industry was well on its way to a fifth consecutive year of increased M&A activity.

However, by the second half of 2007, these trends began to slow, as growing concerns over the lending markets and general economic conditions began to impact the landscape of the M&A environment. This year has shown that concern to be true in a way not even considered in December.

Imperial Capital says that activity in the security industry will continue to sustain momentum, because the core need has not gone away, and given the profile of the typical security company, the industry has not been as greatly impacted by the tightening lending market as the larger deal market. As capital for larger deals becomes more scarce, the investment banking group says that strategic and financial acquirers will continue to seek value in the middle market.

Consistent with this view, Imperial Capital was the host of The Sixth Annual Security Growth Conference, which took place on March 4-5 at the Loews Santa Monica Beach Hotel, in Santa Monica, Calif. Nearly 40 companies representing a broad spectrum of the security industry presented exciting business and investment opportunities to a well attended audience of global strategics, investors and other interested parties who are seeking business development opportunities in the security industry.

To view the report, visit www.imperialcapital.com/Account/PDFReports/Technology/TechnologyQ12008.pdf

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