The fire and life safety industry is experiencing one of its most active consolidation cycles on record. M&A deal activity increased by approximately 67% year over year in 2025, with roughly 125 transactions completed across the sector,¹ and 2026 is on pace to remain just as active.
For owners who have been watching from the sidelines, that level of activity is hard to ignore. But transaction volume only tells part of the story. What's changing is who is buying, why valuations have increased, and what that means for the legacy you've spent decades building.
Despite the recent consolidation, the market remains highly fragmented. No single contractor holds more than 5% market share at the installation level,¹ making well-run, relationship-driven local businesses some of the most sought-after organizations in today's market.
Not all buyers are the same and that distinction matters.
Scaled platforms with strong recurring revenue are transacting at 17x to 20x EBITDA, while project-heavy businesses with limited inspection or monitoring revenue are typically valued between 3x and 5x EBITDA.¹ That difference reflects how the market values recurring customer relationships, predictable revenue, and long-term business fundamentals.
Today's buyers are also evaluating customer retention, recurring revenue quality, and operational performance more closely than ever.² Companies that have invested in exceptional customer service, long-standing relationships, and reliable service contracts are being rewarded accordingly.
At Zeus, we approach acquisitions as long-term partners, not short-term investors. We're building a company designed to create lasting value for customers, employees, and the businesses that join our family. That means preserving local leadership, maintaining the trusted brands customers know, and investing in the people and capabilities that made each company successful in the first place.
If you're interested in learning more about what's driving today's market and how experienced operators are thinking about their next chapter, we encourage you to listen to a recent episode of the Why We Like It podcast.
Zeus Founder and Executive Chairman Scott R. Elkins joined Luke Webb, Managing Director of Business Services at Lincoln International, alongside Sam Tidswell-Norrish of Access Holdings, for a discussion on the forces shaping consolidation in the fire and security industry. Together, they explore what differentiates companies that command premium valuations, why the market continues to evolve, and how Zeus' house-of-brands approach allows businesses to preserve their local identity while benefiting from the scale and resources of a national platform.³
It's an insightful conversation featuring the perspective of an industry investor, an M&A advisor, and an operator actively building one of the industry's fastest-growing platforms.
Listen to the podcast here.
Sources
¹ CT Acquisitions, Private Equity in Fire & Life Safety and Security 2026: Active Platforms, Multiples, and Consolidation. May 2026. ctacquisitions.com
² SDM Magazine, A Year of Surprises: M&A Activity in 2025 Slightly Improves. February 2026. sdmmag.com
³ Why We Like It (Access Holdings), Fire and Security Gold Rush: Inside one of the Fastest-Consolidating Sectors in the Lower Middle Market. June 5, 2026. Apple Podcasts