If you know you want to sell your fire protection business in a few years, your impulse may be to slow down or simply maintain your current workload. But, the opposite can be the better way to prepare for more competitive offers.
Here are a few ways to sell your fire protection business for more:
Expand Your Fire and Life Safety Services
If your company has limited services, consider adding to them. More services help you become a bigger competitor in your area and reach new customers. It is also a great way to increase your recurring revenue. Expanding your services to include sprinkler systems or alarm systems can be costly, so you need to consider how quickly you hope to sell or exit.
If you know you have a few years before you’re ready to sell, now is a great time to build out your services and start helping more customers. Depending on your company’s size, you may even be able to diversify through acquisition and purchase another specialty provider to quickly start offering a new service through your own business.
Protect Your Reputation as a Quality Service Provider
The only thing more attractive to buyers than profitable companies are companies that also have stellar reputations and high customer retention. If your business already has a positive name in the local community, it will be easier for it to gain traction and maintain a skilled team.
How can you protect your reputation? First, make sure you are keeping up with the basics. Only use quality products. Operate with safety first, which includes following proper protocols on job sites and when operating company vehicles. Offer 24-hour service if you can, so your community thinks of you as a reliable resource during an emergency.
You can also clean up your digital presence. Encourage satisfied customers to leave reviews on Google and ask your employees to review your company on Indeed. Happy customers and happy employees sharing their thoughts publicly is the most powerful way to show investors your company is committed to excellent service.
Build Up Your Sales Team to Keep Adding Inspections
Recurring Monthly Revenue (RMR) is every investor’s favorite thing. Inspections are the golden way to build your company’s RMR. Although the installation of a suppression system is a high-dollar initial sale, it only happens one time.
Annual, semi-annual, or monthly service calls to inspect fire extinguishers, kitchen suppression systems, sprinkler systems, and alarm or security systems keep money flowing through the business on a regular basis. This is what investors want to see.
If you are relying on your service technicians to do most of the selling, your business is only going to grow so quickly. By building up your sales team, you add employees whose sole focus is to call target customers, pitch your fire and safety services, and expand your customer base. Even adding one more sales representative to your team can speed up your growth!
Organize Your Office and Processes
Sometimes it all comes down to the basic day-to-day function of your business. How does your office team answer and respond to phone calls? What is a typical customer service experience? Are your invoices easy to pay? How many outstanding bills do you maintain on average? Are you wasting money on parts or supplies you have, but can’t find due to a lack of organization?
A business that runs smoothly both inside the office and out in the field is a dream for investors. The less a new owner or investor would have to do to help your business become more successful, the more attractive it is as an acquisition option. So, if part of your process is bumpy or causing frequent issues, now is the time to fix it!
Ready to Exit Your Fire Protection Company?
If you are ready to sell or exit your fire protection company now, then don’t wait any longer to talk to buyers! By working with an experienced fire protection broker like Rory Russell, you have a better chance of receiving great offers, regardless of how prepared you were to sell. Rory can help generate interest in your business and will be your advocate when the negotiations get tough.
To learn more about working with Acquisition and Funding Services, you can check out our FAQ section here. You can also talk to Rory today by calling 800-354-3863. We look forward to helping you take your next step!