The U.S. economy is shifting precipitously and the security industry is watching with intent at the effect on financial markets — chiefly, a steep climb in interest rates over the past few months. In November 2022 the prime rate in the U.S. stood at 7 percent, which is the highest level seen since 2007. Another rate hike was expected in December, which would bring the prime rate to 7.5 percent and cause interest rates to rise further.

In addition to higher interest, security companies are looking at inflation of 7.75 percent, a labor shortage, equipment delays stemming from the supply chain issue, and a recession looming on the horizon. They’re wondering if it makes sense at this time to seek capital to make an acquisition, to grow their business, or for other liquidity purposes.