When you put the alarm company you’ve spent your life building on the market, you don’t just want to sell it. You want to sell it for what it’s truly worth – or more if possible.
Whether it’s a fire alarm company, a burglar alarm company or another type of security business, it’s in your best interest to maximize the profits from the sale. Doing so will give you the opportunity to take on your next venture or retire knowing that your hard work paid off and you did what was best, both for you and for the company you worked so hard to build.
But how do you sell your alarm business for maximum profit? Is there some kind of magical formula or strategy for ensuring that buyers understand the value of your company and will be willing to pay top dollar for it?
The short answer to that is no – but there are some steps you can take to maximize the profits generated by the sale of your alarm business.
5 Tips For Maximizing The Profitability of Your Alarm Company Sale
Want to sell your alarm business for top dollar? Keep these tips in mind.
Tip 1: Have a Succession Plan In Place
There’s a reason why our top tip for planning for the future of your alarm business is to have a succession plan in place.
Succession planning is good for your business, good for you, and good when it comes to selling your organization for maximum profit. Well qualified buyers understand that companies with strategic succession plans in place are more valuable, and they’re willing to pay top dollar for them.
If you’re hoping to sell your company in the near future or down the road a ways, it’s well worth the time and effort to implement a succession plan. It’s a great place to start if you’re looking for ways to maximize profitability when you ultimately move forward with selling.
Tip 2: Know The Value Of Your Company
Having an accurate business valuation is key if you want to sell your business for top dollar. After all, if you don’t know exactly how much your company is worth, how will you know how much you can realistically sell it for?
For alarm companies specifically, accurate business valuations can be hard to come by. Because they can’t be accurately evaluated using the EBITDA model, and because there are number of additional factors that influence their value – including RMR and service revenue – it’s sometimes a bit more challenging to determine their true worth.
Despite the fact that it may be challenging, obtaining an accurate business valuation is imperative if you want to sell your alarm company for maximum profit. Working with an experienced alarm company broker is one of the best ways to do so.
Tip 3: Know the Market
Is now a good time to sell my alarm business? This is an incredibly important question to ask yourself as you’re contemplating when to sell.
If you’ve been in the industry for a while, you probably have a good understanding yourself as to what’s going on in the industry as a whole and whether or not now’s a good time to sell. But if you’re not sure you have a handle on it, it’s well worth it to partner with someone who has a finger on the pulse of the industry.
There are a number of important factors to consider when you look at the market to determine whether or not it’s a good time to sell your alarm business. Some of these factors include:
- How is the Internet of Things impacting your business?
- Is it currently a buyer’s market or a seller’s market?
- What’s going on with the capital gains tax?
- If you’re hoping to start a new venture in the industry, is now the ideal time to do so?
Tip 4: Work With An Alarm Company Broker
As the time to sell approaches, you’ll likely be looking for allies. People who can help your sale go smoothly, and help you to generate maximum profits from the sale of your business.
We highly recommend working with a trusted and knowledgeable alarm company broker. Brokers can offer you and your company a number of advantages, including:
- Access to qualified buyers
- Insider industry knowledge and insight
- Accurate alarm business valuations
- Fast, no hassle sales
- Expert negotiation on your behalf
These benefits can help you greatly especially if you’re working towards a maximally profitable sale.
Tip 5: Don’t Settle
When you’re finally in the process of selling, don’t settle. It may be tempting to accept an offer that’s lower than what you’d hoped for, especially if your business has been on the market for a while. But waiting for the right buyer who is willing to pay the right price is key if you want to maximize your profits. And sometimes that requires patience.
If you’re uneasy about the direction a buyer wants to take your company, you’re not confident in their leadership abilities, or you simply feel that your business is worth more than the current buyers are willing to pay, don’t be afraid to wait.
You’ve put in the time and the effort, and your business is worth it.
BONUS Tip: Choose The Right Type of Sale
This may be a bonus tip, but it’s one of the more important things to consider as you approach the prospect of selling your alarm business.
There are a number of ways that alarm company sales can be structured. Two of the most common structures are asset sales and stock sales. Understanding these two sale types and determining which of the two will benefit you and your business the most from a profitability perspective is key if you’re hoping to sell for top dollar. You can learn more about the pros and cons of stock sales and asset sales for sellers here.
Cash In On Your Alarm Company – Sell For Top Dollar!
Keep these tips in mind to help you on your way during your quest to sell your business for maximum profit.
Looking for more insight about selling your alarm company for top dollar? We have two great downloadable resources available:
Download our FREE webinar slides, How To Sell Your Alarm Business for Maximum Profit, a valuable resource for anyone looking to achieve a profitable sale.
Want access to additional insight that will help you mitigate risk as you approach the sale of your alarm business? Read our top tips for avoiding hazards and risks when selling your security business here.
How To Know When It’s Time To Sell Your Alarm Company: It can be tough to know when the right time to sell is. Read our insight on what to look for to know now’s the time to put your company on the market.
7 Mistakes To Avoid When Selling Your Alarm Company: Part of selling for top dollar is knowing what NOT to do. Learn from other business’ past mistakes! Find out how to avoid key mistakes when putting your alarm company on the market.
Tips for Successful Alarm Company Sales: The alarm company sale process, broken down into 5 manageable steps. Get a sense of what’s coming your way if you’ve decided now is the time to sell.