2020 and 2021 have been challenging years for businesses for many reasons – but they’ve also brought about unique and unexpected opportunities for those in the security, fire, alarm, and integration industries. Opportunities that will likely carry over into 2022 and beyond.
One opportunity that 2021 brought about for many alarm business owners is the opportunity to sell their companies to well qualified buyers for top dollar. While this came as a surprise to some, there are actually a number of reasons why 2021 was a good time to sell your alarm or security business – and why 2022 will continue to be a favorable time to consider a sale.
Why is 2022 a Good Time for Alarm Company Sales?
While at first glance, 2021 seemed like a tumultuous year and a questionable time to make any kind of large-scale business decision or pivot, it was actually a favorable time for business owners to sell their companies in the security, fire, alarm, and integration industries.
Why? Here are a handful of factors that made 2021 a good time to sell and will carry over into the coming year, making 2022 a favorable year for alarm business sales as well:
Buyers are eager to find profitable businesses to purchase
Many buyers are in the market for successful alarm companies, looking to merge or expand their own businesses through a purchase. At this particular time, many company owners are a bit wary of selling, unsure that the sale will be profitable given the current market conditions and the uncertainty of the economy following the COVID-19 pandemic.
This means that there are a limited number of alarm companies on the market – which gives you a better chance of finding a motivated buyer if you do decide to pursue a sale.
Alarm business owners don’t want to pivot
Many business owners aren’t willing or able to pivot. They don’t want to rethink their businesses or invest in evolving in order to stay competitive in the current environment.
If you don’t want to adjust, now is a very advantageous time for you to sell.
Alarm companies are in high demand
Unsure of how things will shake out following the pandemic, many business owners don’t think now is a good time to sell. As a result, alarm companies for sale – especially those profitable companies in good standing with solid customer bases – are in high demand.
Businesses that are doing well are highly desirable for buyers on the hunt for a business they can merge with or acquire. This means buyers are willing to pay top dollar for your company.
The capital gains tax rate may change
At present, there is a sense that the capital gains tax rate may change and will likely increase in the not-so-distant future. This increase could increase the burden on sellers’ post-sale profits. As such, if you’re looking to sell your alarm business, doing so sooner rather than later may be advantageous.
Alarm business valuations have generally gone up
Alarm and security businesses that have been able to adapt and adjust in order to make it through the turbulence of the pandemic have generally seen an increase in value. These higher business valuations can mean higher profitability when it comes time to sell. If your business has successfully navigated the pandemic but you’re ready to let go of the reins, now may be a good time to do so.
Interested in a business valuation to gain a better understanding of what your company is truly worth in today’s market? Give Rory a call at 800-354-3863 or contact us here to request a full, confidential alarm business valuation.
The future is still uncertain
While the market is recovering in many ways following the pandemic, the future is still somewhat uncertain. Many business owners approaching retirement may be looking to mitigate their risks and get out of the market now.
If you’re unwilling to bank your future and retirement on the uncertain future of the market and economy following the pandemic, now may be a good time to consider selling your alarm or security business.
Ready to Take The First Step Towards a Successful Sale?
Convinced that now might be a good time to move forward with the sale of your alarm, security, fire, or integration business? Interested in exploring your options when it comes to putting your company on the market? We’re here to help.
With decades of experience in this dynamic market, Rory knows the ins and outs of alarm business sales and valuations. If you’re looking to better understand the value of your company, connect with buyers, or find the right time to sell, Rory is the resource you’ve been looking for.