DIGITAL TRANSFORMATION & PHYSICAL SECURITY: A CALL TO ACTION
The physical security industry is extremely active right now, with an addressable market estimated at $124.9 billion for 2020 and growing to $232.5 billion by 2027. This growth reflects the increasing demand for security as traditional threats like terrorism and crime grow exponentially in terms of variety and technical sophistication. This trend is of course exacerbated by the global pandemic. However, as important as growth is that digital transformation and advancements in areas such as automation, artificial intelligence, cloud computing, and blockchain are all fundamentally transforming the sector and the way security companies do business.
Digital transformation involves the integration of digital technology from all areas of the enterprise into the security infrastructure. While digital transformation is exceptionally promising for the physical security industry today, the fact is not everyone will survive the journey. Significant portions of the industry are seriously lagging behind their more data-driven contemporaries. These companies risk becoming displaced and disrupting the entire security ecosystem.
The physical security industry was built upon precursors of digital transformation, which bodes well for a promising future.
Ironically, the security industry has been transformative for quite some time, stemming from early advancements in technologies that fundamentally changed its business long ago. IP-based cameras, for instance, were an early advent of the IOT sensor. Access control programs of yesterday constructed some of the world’s first physical-digital identities. Security central stations had for years monitored customers’ assets remotely and on a 24/7 basis. However, despite these advancements, the industry historically has not leveraged the gold mine of untapped data because it failed to think creatively, and instead opted to use products and data only for the purposes for which they were originally designed and failing to apply these solutions in unique ways to address more complex problems. A great example from the past would be only using CCTV cameras to solve a crime, but not using them for parking enforcement at the airport, as is so common today. The security industry years ago also rarely had the tools or skills in place to solve more diverse security problems, like using access control logs to proactively discover insider threats. To some degree, this failure had to do with architecture and purpose-built solutions as well as limitations of technology at the time.
[…] read more
About The McLean Group
For over 30 years, The McLean Group has been providing investment banking and financial services offerings focused on the Defense, Government & Intelligence (DGI), Security, Critical Infrastructure, Maritime, Facility Services, Unmanned Systems, and Public Safety markets. Our 60+ professionals bring deep industry experience and relentless execution to every client engagement. We provide solutions that blend financial creativity with operational expertise. Whether we are providing transaction advisory, valuation opinions, or growth capital, our services are unmatched in these core markets. Learn more at www.McLeanLLC.com.
RECENT NEWS
One Valuation Partner, Portfolio-Wide
In the article “One Valuation Partner, Portfolio-Wide,” we explore why many private equity firms are consolidating valuation services with a single independent partner across their portfolio companies. As valuation increasingly serves as a core element of governance, financial reporting, and risk management, a unified approach can deliver significant advantages, including consistent methodologies, more efficient audit processes, improved portfolio-level benchmarking, and better economic alignment. When paired with a nimble, best-value provider, this model allows sponsors to maintain institutional-grade rigor while reducing operational friction and preserving portfolio company economics.
Government Shutdown Impact on Financial Due Diligence And Quality of Earnings
This white paper examines the ways the 2025 shutdown influenced the FDD and QofE processes for GovCon targets. It also examines how our practice helps sellers present defensible, normalized financial positions that support strong valuations in challenging deal environments. As specialists in financial due diligence for GovCon and defense transactions, we provide targeted strategies to address shutdown-related volatility and position clients effectively in M&A negotiations.
Tech Connect Series – What 2026 May Hold
The McLean Group is hosting an exclusive, in-person Tech Connect Series event focused on the 2026 economic outlook and its implications for technology companies. This private C-suite forum will examine the macroeconomic conditions, capital markets environment, and strategic considerations shaping the technology sector, with an emphasis on how leadership teams should be positioning their organizations for the year ahead.
The program will feature a fireside chat and interactive Q&A with Kevin Depew, followed by cocktails and executive networking at the RSM Conference Center in McLean, Virginia. Attendance is complimentary but limited and reserved exclusively for C-suite operators of technology companies. Registration remains open for qualified executives. […]