Private fire protection companies play a vital role in ensuring the safety of businesses and organizations. While their owners may know how to do a great job protecting lives and property, understanding how to pitch their businesses to potential buyers is not as easy as it seems.
To successfully negotiate the best deal for your fire protection business, you want to have a current understanding of the economic climate. You also need to know where your company stands in its local and national markets to ensure you remain competitive and relevant.
In this blog post, we discuss the key things you need to know about selling private fire protection companies at the right time, for the right price.
If you are itching to get your business on the market and start fielding offers, you can call our managing owner, Rory Russell, for a confidential conversation at any time. His direct number is 800-354-3863 and he is always available for fire and security business owners ready to sell, so call today!
What is the Basic Difference Between Public and Private Fire and Emergency Services Organizations? Why It Matters
As a fire protection business owner, you’ve likely heard from customers who get confused about your role after the fire department comes by and performs a safety inspection. The role of public safety organizations like the fire department is to look out for general safety in the community and respond to emergencies. These spot checks of businesses are more equivalent to the monthly inspections your customers can perform on their own than they are to the inspections your technicians perform. They are not sufficient to certify the equipment is functioning up to code-regulated standards. These safety checks also do not look at the more complex and important fire suppression systems throughout the building.
Private fire protection companies provide necessary services to businesses. They maintain a current understanding of the safety codes and regulations as they apply to general and specialized situations and spaces. They also keep the right parts and equipment in stock to ensure their customers are always protected and prepared for an emergency. They have the expertise to offer specialized services such as fire risk assessments, compliance audits, or training workshops. They also perform the required inspections and maintenance that keep a business in compliance.
It is important to know how to explain this difference and the essential role of your fire protection company to those outside the industry if you want to sell. Even if you are speaking with buyers in the industry, learning how to explain your company’s importance will prepare you to pitch it with confidence when negotiating.
Private Fire Protection Companies Near You? Know Where You Stand in Your Market
When preparing to sell your business, you want to make sure you understand how you compare to the other private fire protection companies around you. A buyer interested in your company will likely be exploring other options that are similar. Your nearest competitors will also be your competition in the acquisition market. Some buyers will purchase multiple fire protection companies in one area, but that is not the case every time. So, you want to have an accurate idea of how you compare as you begin to consider selling.
You can use market research to determine the demand for your services and talk to your technicians about the complaints or comments they hear in the field. Often customers will share things about other companies’ pricing strategies and selling points with your technicians if they’re considering a switch. If you can identify the strengths and weaknesses of your competitors, you can decide how you compare. You can then leverage your unique selling points to gain a competitive edge. You can also start to address any areas that are weak so your company is more attractive when it hits the market.
How a Broker Can Help Owners of Private Fire Protection Companies Secure Better Offers
While private fire protection companies can conduct market research themselves, they can benefit significantly from working with a broker. The primary reason is that brokers have privileged insights into the markets they operate in and can provide tailor-made solutions to match the needs of private fire protection companies. Brokers also offer a range of financial services that can help you grow your company faster or stay steady through a difficult time.
While most brokers will be able to offer generalized financial advice and tips to prepare for selling, a broker with fire and security experience will help you gain the most attention and better offers. This is because fire protection companies have to be evaluated differently than other businesses. Brokers without industry experience will not know how to properly represent the value of the RMR your business generates. This is one of your biggest selling points and is what interested buyers will want to hear about the most.
Working with a broker not only improves the outcome of the sale, but it also simplifies the negotiation process. Many private fire protection companies are family-owned. This makes the selling process even more complicated and emotional. If your company is one of these, letting a broker handle the financial side of things can allow you to handle the emotional side. You can be more present for your team and for your family members as you prepare for the big transition. You can also feel assured that someone is helping you get a good price for this business you have poured so much time and effort into building.
Ready to Sell Your Fire Protection Company? Make AFS Your First Call!
Private fire protection companies play an essential role in protecting businesses and organizations from fire and other emergencies. To remain competitive, owners need to understand their unique market position and know where they stand in their local markets. Working with a broker can help them gather privileged insights into their value, gain access to better buyers, and increase their offers as a result.
With over 30 years of experience brokering sales in the fire and security sectors, Rory Russell knows exactly how to pitch your business so you get the offers you deserve and can exit when you like. With warm buyers standing by, he can connect you with interested investors within days and help you form a reasonable idea of what the future could hold for you and your business.
To request a professional valuation of your company and start learning about your options, fill out our confidential form here. We look forward to hearing from you!