The security industry is currently facing a number of unique challenges. A lot of fresh players – including the great Google giant – are entering the field, and it seems like the Internet of Things is driving new, game-changing technologies that are announced each week. If you own a security alarm business, you’ve probably heard the whispers that now is the time to sell your company so you can get out while the getting’s good.
But what if you’re just not ready to pack it in and call it a day?
Despite all the so-called obstacles you keep hearing about, you know you have a solid company that’s doing well. You have a team of dependable, hard-working employees who are both highly skilled and loyal. Your company name is respected, and you have a great relationship with your client base. Plus, you actually like what you do – and that “asset” alone is priceless.
The Times They Are A-Changin’
You’ve put together a nice list of reasons why you’re not ready to sell your alarm business, but there’s one topic you’re trying to avoid. Your customers’ expectations are starting to change.
In order to stay competitive, you need to start making some major investments in new technologies and equipment. You may even need to add some new services to your mix because your clients are looking for bundled security packages.
Your recurring monthly revenue (RMR) may be strong now, but you know it won’t stay that way for long if you don’t start making changes soon. What options do you have? Where is the money you need to grow your business going to come from?
You could always start searching for lenders, but you’re not crazy about the thought of racking up a lot of debt.
There’s no reason why you should feel pressure to take the all-or-nothing route. Instead, you can choose to sell some or all of your accounts and use that money to reinvest in your existing business.
Benefits of Selling Your Accounts
- You can close fast. In most cases, you will be able to seal the deal within 30 days and use the cash to start putting your growth plan into action.
- You won’t need to worry about loan payments and interest rates. It’s often more beneficial to cash out on some of the equity in your company than it is to seek outside financing. If you’re not sure which path is right for you, contact AFS to learn more about your options.
- From the customer’s viewpoint, it’s business as usual. Your company name and identity will remain the same – even on your customers’ billing statements. No one will know that you sold your accounts, unless you decide to tell them.
- Your company’s branding and reputation stays intact. You get to keep all of your existing marketing materials and the good name that you worked so hard to build. Logos, yard signs, decals… They all stay the same.
- You keep earning ongoing revenue. All service revenues, leads, and referrals remain yours. What if a customer requests an equipment add-on? You receive the revenue from that, too.
Want to Learn More?
If you aren’t ready to sell your business, but you do need more cash on hand for expansion projects or other reasons, selling some of your security alarm accounts is an excellent option. When you work with AFS, you’ll receive highly competitive multiples and total support through due diligence and closing of the sales transaction.
Wondering if this is the right path for you? Give AFS a call today at 800-354-3863 for a free valuation and to learn about other options available for your unique situation.
You can also get some great insider tips on selling your alarm business by downloading this ebook chock full of industry advice on timing the sale of your business for optimal gain.
© Rory Russell and Acquisition and Funding Services, 2014. Unauthorized use and/or duplication of this material without express and written permission from the author and owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Rory Russell at AFSSmartFunding.com with appropriate and specific direction to the original content.