The Importance of Accurate Security Business Valuations

alarm company broker calculating the value of a security company

If you’re a business owner in the alarm, CCTV, fire, or security industry, you’ve probably heard over and over that it’s important to have an accurate business valuation. Whether you’re in the market to sell your business, or you’re planning to be at the helm for years to come, it’s no secret that it’s a good idea to know your security business’ worth.

But what actually makes accurate security business valuations so valuable?

Here, we delve beyond the fact that you should have a solid understanding of your company’s worth to explore why having that knowledge can benefit you, both now and down the road.

Why Accurate Alarm Business Valuations are Important

You’ll Better Understand Your Business’ Assets

As a business owner, you probably have a good sense of what your company’s assets are, and you may even have a sense of what its most valuable assets are. However, you might be surprised just how much the property and resources associated with your business are really worth.

A business valuation can help you take stock of the resources you have currently so you have a solid understanding of the value of the property associated with your company. An accurate valuation can also help you decide where you need to pare down and where you should invest more when it comes to company resources.

You’ll Have a More Solid Understanding of Your Current Profitability

A security business valuation can help you take into account value that you might not be able to see tangibly. By accounting for recurring monthly revenue and/or service revenue your business is generating, a valuation will help you to understand where you stand financially. This can help you gain a better sense of how your company is doing profit-wise, but it can also help you to determine whether or not you need to adjust your margins.

You’ll Be Able to See New Opportunities

Business valuations are helpful in that they take inventory of all valuable aspects of your business, but they’re also beneficial in that they make gaps and potential opportunities for improving and strengthening your business evident as well.

After another set of (well-qualified) eyes analyzes your business, you may be able to glean suggestions regarding how to increase profits and/or further build your company’s value. In this way, a security business valuation can both help you understand your business’ current value and see how you can continue to stimulate growth and profitability moving forward.   

You’ll Have a Better Holistic View of Your Business

There are a wide variety of factors that influence the true value of a security business. From equipment and technology to sales, contracts and recurring monthly revenue, there’s a lot to consider when it comes to determining how much a company in the fire, CCTV, integration or security business is worth. 

Obtaining a business valuation that’s been done by a qualified individual can give you a more accurate sense of the overall value of your business and help you ensure that you’re not overlooking anything.

You’ll Know Your Company’s Worth When The Time Comes to Sell

After spending your life working to build a solid business, when it’s time to hand over the reins you’ll want to do strategically – and you’ll want to hand them to a buyer who is willing to pay top dollar. The only way to know you’re selling for a reasonable profit is to have a solid, accurate understanding of what your business is really worth.

Before you start searching for a buyer or decide to put your company on the market, take the time to secure a business valuation. That way, you’ll be able to sell confidently, knowing that you’re comfortable with the price you’re asking and its relationship to the value of the company and assets you’re selling.

Knowing What Your Security Business Is Worth Will Help You Now and Later

Exploring and understanding your business’ value can provide a lot of value in both the short and long term. From helping you to better understand your current profitability and assets to ensuring you sell for top dollar when the time comes, accurate security business valuations are key.

Interested in obtaining an alarm business valuation for your company? AFS can help! With decades of experience, we know how to evaluate security businesses accurately to assess what they’re worth.

Ready to fully understand the true value of your company? Contact us for a full confidential business valuation here, or give us a call at 800-354-3863 to talk with Rory Russell directly about the value of your company.

Curious about the factors that influence your company’s worth? You can learn more about the factors that impact the value of your company here.