Study points to possible alarm firm acquisition targets

Plimsoll says the survey has assessed each of the leading burglar and intruder alarm systems companies on their overall financial strength and eight measures of acquisition attractiveness. According to the research, 41 companies have sales growth above the industry average, 31 companies have a low financial rating, 18 companies generate high actual earnings, yet lose money, 12 companies have a big difference between their current and future values, 37 companies have directors' fees taking a high proportion of profits, 23 have a high average directors' age, 66 do not have a parent company, and 65 are controlled by a small board of directors.

For each of these criteria, a company was awarded a point. The more points it scored, the more likely it was considered to be attractive to a potential acquirer, Plimsoll's David Pattison said. "The full analysis is ideal for curious acquirers," he said. "They almost certainly will have some targets in mind. This analysis will help them to consider these and other options objectively."