Looking to sell your fire alarm company? If you are and you’ve been in the market for a while, you may have noticed that many buyers are unwilling to pay what you feel your company is worth. This can be frustrating, especially if your company has been for sale for longer than you expected and you are anxious to hand the reins over to a capable buyer who truly understands the value of your organization.
So why does this happen? What’s causing this trend – and what can be done to help you find a buyer for your fire alarm security business?
Why Some Buyers Won’t Pay Top Dollar For Fire Alarm Companies
Determining the value of an alarm company can be a challenging task. Some brokers and buyers rely on specific models when it comes to performing alarm company valuations. The reality is, while these models work well for some alarm security businesses they don’t provide an entirely accurate valuation for others.
Fire alarm companies often fall into the second category. Many times, traditional valuation models don’t necessarily work for them.
Why? Because of the importance of service revenue and test and inspect revenue in the fire alarm industry.
Many alarm company buyers are hesitant to acknowledge service and test and inspect revenue as an asset when purchasing a fire alarm company. The reality is, however, that service revenue is an important factor that should be considered when determining how much your fire alarm company is worth and how much a buyer is willing to pay.
How To Find a Qualified Buyer When Selling Your Fire Alarm Security Business
There are a number of ways to find qualified buyers when it comes to selling your alarm company. In most cases, the best way to find a well qualified buyer willing to pay top dollar for your company is to work with an experienced alarm company broker. This is especially true when it comes to selling a fire alarm company.
In fact, finding an alarm company broker who is experienced in mergers, acquisitions and sales involving fire alarm security companies is imperative if you want to sell your fire alarm business for maximum profit to a buyer who is capable of maintaining and growing the business you have worked so hard to build.
Why? Because you need a broker who recognizes the value of service revenue and test and inspect revenue. One who has connections to buyers who are willing to pay dollar for dollar for that revenue.
If you are working with a broker that sticks to standard valuation models, chances are your business will be undervalued, leading interested buyers to the conclusion that they can pay less for it. Working with an experienced broker who truly understands the fire alarm security industry will lead to a more accurate business valuation and, in the end, a more profitable fire alarm company sale.
Selling Your Fire Alarm Company? AFS Can Help!
At AFS, we recognize that every alarm company valuation is different. There is no one-size-fits-all model. And when it comes to determining the value of fire alarm companies, we understand the importance of taking service revenue into account.
Perhaps even more importantly, we have access to buyers who recognize the value of service revenue and are willing to pay dollar for dollar for it.
If you’re in the market to sell your fire alarm business, AFS can help you get the job done. With decades of experience in the industry, Rory Russell is one of the top brokers for the fire alarm industry. He has the knowledge, resources and connections necessary to sell your fire alarm security business for top dollar.
Looking to learn more about fire alarm company or account sales before taking the next step? The following resources are a good place to start:
Four Things You Need to Know About Fire Alarm Business Sales: We share four of the most important things you should be aware of as you approach selling a fire alarm business so you are well informed as you start the process.
Service Revenue in the Fire Alarm Industry: Service revenue is one factor that can complicate fire alarm company sales – but it’s also an incredibly valuable asset. Find out how to capitalize on service revenue when selling your fire alarm company.