If you’re looking to enter the fire alarm industry or you’re thinking about integrating fire into your alarm business, acquiring a fire alarm company may be among the first steps you’re interested in taking.
But while purchasing or merging with an established fire alarm business can be an effective way to join the industry or create a more diverse integration company, acquiring a fire alarm business can be complicated.
A fire alarm business acquisition is not something you should enter into lightly. There will be many logistics to work out and a learning curve to navigate as you enter this new realm of the security industry.
At the most basic level, it’s important to be prepared for the fire alarm business acquisition itself.
3 Basic Things to Keep in Mind as You Approach a Fire Alarm Business Purchase
Fire alarm business acquisitions are different from traditional alarm business acquisitions in a variety of ways, and there are a few important things you should keep in mind as you approach the purchase of a fire alarm company.
Valuations Are Key
Knowing and fully understanding the value of the fire alarm business you’re aiming to purchase is hugely important as you approach a merger or acquisition. You’ll want to have a solid comprehension of how much the company is truly worth to ensure that the price you’re paying is fair and reasonable.
If you’re looking to merge your existing security business with a fire alarm business, you’ll also want to have a solid understanding of how much your current business is worth.
It’s important to have all of the information in order to make an informed and responsible decision, and to ensure that the sale of the business is fruitful and beneficial for both parties involved. As such, valuations are key.
Wondering where you can get an accurate alarm business valuation? Contact Rory Russell today to get the valuation process started.
Service Revenue is Worth More Than You Might Expect
Fire alarm businesses are big generators of service revenue – and service revenue is incredibly valuable. It’s reliable, consistent, and substantial in many cases, making it a tremendous asset.
While service revenue is a factor that can sometimes complicate fire alarm business sales, it’s a very important factor to accurately take into account when purchasing a fire alarm company.
Being knowledgeable about service and test and inspect revenue, and willing to pay for the true value of the service revenue you’re acquiring with the fire alarm business you’re purchasing will help to make you a more well-qualified buyer. This could put you at an advantage when it comes to acquiring a fire alarm business.
You may end up paying more than you had initially expected for a fire alarm business, but if you’ve done your due diligence the investment will likely be a beneficial one.
Fire Alarm Company Sales Are Often More Complex Than Typical Alarm Business Sales
For the reasons mentioned above, and others, fire alarm company sales are often a bit more complex to navigate than other alarm company sales.
Like most alarm companies, fire alarm businesses can’t be valued accurately using the EBITDA model. But due to the presence of service revenue and test and inspect revenue, fire alarm sales can be extra complicated.
It’s important to be prepared for the complexity of the purchase, and to understand that the timeline you expect for acquiring a fire alarm company may not be exactly what you experience. It’s also a good idea to work with an experienced broker, who can help you to navigate the purchase successfully and knowledgeably.
It’s also important to recognize that integrating a fire alarm business into your existing security business may present challenges. You’ll want to be sure that your business is well-positioned to take on the challenges of fire integration before you move forward.
That being said, integration can be incredibly advantageous if you can achieve it successfully. You can learn more about the benefits you stand to gain by integrating fire and security here.
Acquiring a Fire Alarm Business? AFS Can Help!
If you’re in the market for a fire alarm business Acquisition & Funding Services can help!
Whether you’re looking to expand your existing fire alarm business or you’re hoping to integrate fire into your security company, we have the knowledge and insight necessary to guide you through the acquisition process.
As one of the top brokers in the fire alarm industry, Rory Russell knows what it takes to connect well-qualified buyers with sellers who have valuable companies on the market and ready to sell. If you’re looking to navigate a complex fire alarm business purchase successfully, you want Rory on your side.
Interested in more insight regarding acquiring an alarm business? Check out our post about what to look for in an alarm business you intend to buy here.