Our Vision: Growth and Transformation in a Crucial Industry

The Freedonia Group states that the global security service industry is $95 billion and will grow by 7.7% per year through 2008, with contract guarding being the largest industry segment. According to the same researchers, the industry is estimated to be a $37 billion market in the U.S. alone. In September 2005, Bear Stearns published a report on the state of the security industry claiming these markets numbers and identifying a key trend in the industry’s near future: large scale consolidation. Because the security industry is so highly fragmented, forecasters see the consolidation in three prime capacities: 1) big players will buy smaller complementary players, 2) service providers will purchase product-focused companies and 3) continued international consolidation likely.

Revenue growth within the industry will be powered by rising demand for better-trained and more skilled guard personnel who will command significantly higher wages.

Since September 11, 2001, the market's perception and demand for guard services has dramatically changed. The image of the low-tech night watchman has given way to the reality of sophisticated, well-equipped, highly trained personnel who must deal effectively at a moment's notice with a number of threats.

Tri-S Security understands the rise in demand by government and corporations for high-quality guard services. More importantly, we understand the state of the market. We see how the industry must evolve in order to provide the security that the government and the private sector demand.

The challenges of managing change

The security industry traditionally has been highly fragmented. A large number of small-to-midsized companies have offered quality services and operated profitably.

While the industry is in some respects mature, it is now engaged in a remarkably sudden and long-term transformation. Government and corporations continue to allocate far more resources to secure their facilities. They are demanding a higher level of security than ever before. Security company managers, therefore, require more information, more resources and the ability to use it. Operations require far more sophistication. Personnel need better training.

Managing such change and growth is stressful and difficult for many of the entrepreneurial organizations that form the backbone of the industry.
Yet on balance these changes in the guard services industry, including the growth of revenue, are highly positive. For companies capable of running sophisticated, modern organizations, the opportunity is greater than ever.

Our Mission: To Acquire, Consolidate and Create Value

Tri-S Security was formed in October 2001. Our mission: to acquire and consolidate quality contract guard and electronic security companies in order to provide an enterprise of highly trained security professionals to keep America safe at work and home. We seek companies with established reputations for superior customer service. Our plan is to add value to these companies by leveraging the benefits of a larger, public corporation: greater financial resources, greater management expertise, greater efficiency, and a higher level of sophistication in sales and marketing.

Because of the security industry’s fragmentation, we are finding no lack of opportunities for our acquisition efforts. We evaluate opportunities frequently, and at any given time we may be in various stages of due diligence or preliminary discussions with respect to a number of potential acquisitions.

We are aggressively serving our shareholders by identifying and acquiring companies of value that we can develop and enhance in this critical, high-growth, 21st century industry.