During the past few decades, I have been to every conceivable U.S.-based security trade show, conference and gathering — everything from national expos and regional association meetings to thought leadership conferences and vendor-sponsored summits to media junkets and beyond.
In fact, I’ve been to most of them multiple times.
I have had the pleasure of attending — often, as an exhibitor or a speaker — more than 20 ISC Wests, GSX shows (formerly ASIS Expo) and PSA TECs, as well as all but one ESX since its 2008 inception.
As Security Sales & Integration’s editor-in-chief through summer 2023, I faithfully reported on these events and offered analysis to the industry.
Most Prominent and Important
However, there was one event — one that happens to be among the most prominent and important annual assemblies — that always eluded my presence. This was largely due to its exclusivity and cost.
That finally changed earlier this year when I had the privilege to partake in the Barnes Buchanan Security Conference, which was held at its customary upscale location: The Breakers Palm Beach (Fla.).
Yes, the resort is impressive. However, what I found especially fascinating was discovering its history. Built in the late 19th century, the hotel, through the years, has provided accommodations for many famous people. The list includes Clark Gable, Elizabeth Taylor, Cary Grant, Rita Hayworth, the Rockefellers and the Vanderbilts.
Listed on the National Register of Historic Places, the hotel, during World War II, served as an army hospital for thousands of soldiers.
The Barnes Buchanan Security Conference was founded and organized by the financial and M&A consulting firm Barnes Associates (whose principal is 2005 SSI Industry Hall of Famer Michael Barnes) and the law firm Buchanan Ingersoll & Rooney. This year’s event marked its 30th edition.
As Barnes told me, they, in the early 1990s, recognized the need within the security alarm industry for more financing sources. As a result, they were pioneers in creating a conference at which members of the lending and investment community could meet with, and learn from, industry leaders.
New Trends and Opportunities at Barnes-Buchanan
The two-day format offers a combination of panel discussions and presentations by industry leaders, with an emphasis on new trends and emerging opportunities. At its core, it is a deal-making conference at which investors, lenders, borrowers, buyers and sellers are able to network easily and in a relaxed setting.
According to Barnes, there were more than 200 attendees; however, from my observation, it seemed to be about half that. (Presumably, that was because, at any given time, many were off conducting private meetings.)
I would estimate the mix to have been about 60% financial and business professionals, with the rest consisting of security company owners and executives.
Among the latter was Vector Security CEO and 2012 SSI Industry Hall of Famer Pam Petrow, who delivered the keynote. Her engaging talk encouraged security leaders to look to the president for inspiration — not because of politics or because of his policies but, rather, because of his brashness and seemingly fearless attitude. She noted how critical it is for today’s leaders to think outside the box, adapt and try new things.
Another highlight of the event was a mock cybersecurity tabletop exercise that walked through the effects and the best course of emergency action to take when a breach occurs. It served as a compelling wake-up call.
However, the main highlight of the Barnes Buchanan Conference, and why I have always wanted to attend, was the annual “Security Alarm Industry Overview & Update.”
This included nearly 70 slides of mostly exclusive data and analysis. It addressed growth, business structure, operating metrics, Wall Street’s view, technology, threats and market values.
Extremely Healthy With Robust Upside
The bottom line is that the security industry remains extremely healthy, and, for the most part, it continues to present a robust upside.
Key takeaways included the following:
- 6% installation, monitoring and service growth during 2024;
- double-digit growth for large commercial, video and smart home revenues;
- an ongoing decline in the number of local providers (down 11 percentage points since 2015) versus regional and national ones;
- a slight decline in overall gross attrition; a 1x increase in RMR creation multiples; and
- a decline in acquisition multiples.
Barnes noted that, for those looking to raise capital or sell, there are plenty of buyers and money out there, with increased interest from private equity. He also said that he expects inflation to continue rising, and he praised security industry operators for universally raising their prices to keep up.
Returning to Petrow’s theme, Barnes said that companies will be faced with increasing complexity across the board and a faster rate of change. This will require management to be ever more agile and sophisticated.
