Buy a Business

This is one of our best Life Safety business listings. This 39 plus year old business has been a leader in the Alarm/Security business for the Baltimore, Washington DC and Northern Virginia market area. This business is ready to go to a much higher level with a new owner. The following are some of the key elements that make this Alarm/Security business more valuable than the firm asking price of $2.5 Million.

TO START, THIS BUSINESS HAS ABOUT 2,200 MONITORED ACCOUNTS THAT PRODUCE OVER $50,000 OF RMR (RECURRING MONTHLY REVENUE). Most all of this company’s business today, come by referrals and reputation. The owner and a part-time producer are producing the present $1.3 million in sales. About 69% of their sales are government, banks, schools and commercial sales. They do a good residential business, as well. They do not do the $99 giveaways. They get full pricing and make a profit on all residential installations. Most of their residential customers are the owners, managers, and employees of the commercial businesses they service. The monitoring RMR side of the business is valued at a solid $2 million.

THE OPERATIONAL SIDE OF THE BUSINESS IS A MOST VALUABLE PART OF THE BUSINESS. IT IS VALUED AT $500,000, WHICH INCLUDES THE WORK-IN-PROGRESS AND NEW CONTRACTS. This part of the business is now doing about $700,000 in sales. Again, this is all current customer business and referrals. There is no, or very little, sales effort being done. This is because management is past ready to retire. He has all the business that he and his 5 technicians can keep up with. The owner has people he can add to his technical and sales staff, but he wants the new owner to take on that responsibility. The following are some key areas that make this opportunity much more valuable.

THE PRESENT MANAGEMENT HAS 8 PROFIT CENTERS THAT PRODUCE THEIR PRESENT VOLUME: ACCESS CONTROL, VIDEO-CCTV, FIRE ALARMS- INSPECTIONS AND REPAIRS, RESIDENTIAL ALARMS, COMMERCIAL ALARMS, MONITORING, SPRINKLER MONITORING, BANK ALARMS, GOVERNMENT “CLASSIFIED” SPECIAL SYSTEMS, PLUS TO OTHER PROFIT CENTERS. The Life Safety Industries have over 50 profit centers that this industry use collectively. You can see a complete list of these profit centers at www.lifesafetyassociation.org – The following are profit centers that the present owner would add if they were not selling.

THIS BUSINESS IS TOTALLY PREPARED TO GO INTO THE FIRE EXTINGUISHER SALES AND SERVICE BUSINESS NOW! The new owners will be given the opportunity to interview 2 manager/sales people that want to build a large fire extinguisher business, which they know will be responsible for adding a third of the new alarm/security business to their existing volume. There will be 2 full time route sales trucks calling on every business and building in their market area seeking to do their fire extinguisher work. In the process of doing that, they will let these customers, and potential customers, know that they also would like to do their alarm/security work, as well as other life safety services they offer. Each fire extinguisher route sales truck will produce about $250,000 in gross sales, with a bottom line net to the owner of $35,000 for each truck on the road. Dennis Riley, broker for this transaction, owned Beltway Fire Equipment Company. He had 17 route sales trucks on the road servicing 21,000 customers. He sold that business for $1.7 million, which is another way to measure that every time you add another productive truck to your fleet, you add another $100,000 to the equity of your business. When you add fire extinguishers to this business you will be adding 6 new profit centers. You will want to ask me, Dennis Riley, a lot more about this business. I would like to add that one of the fire extinguisher people who wants to interview for a position in this company’s potential fire extinguisher group is certified to do the water backflow inspections which are required by law. This would add another profit center. We also have another fire extinguisher person that would like to be interviewed who has a NICET certification to do the required fire sprinkler inspections. This would put him in a position to have the opportunity to be their number one producer of fire sprinkler central station monitoring.

PEOPLE – PEOPLE – PEOPLE --- ALWAYS ADD SO MUCH TO THE VALUE OF ANY BUSINESS. This business already has 9 excellent employees, most having been there for more than 10 years. A new owner will need several new great producers to help take this business to the next level. I have 2 special people the new owner should interview and hire. One of these people has been the general manager of a large alarm security business for over 10 years. He is the general manager but also the most productive sales person in the company. He handles most of the managerial issues for the business’ two owners. (I expect to list this business, as well, in the near future) This manager is ready to move into new opportunities. This manager would be a great addition to this business.

THERE ARE MANY MORE PROFIT CENTERS AND OPPORTUNITIES THAT CAN BE ADDED TO THIS BUSINESS. We have three 4-Star buyers that are “consolidators” who are focused on the Life Safety industries. We have 4 listings in this market area, one of the greatest market areas on the East Coast. If one of these buyers puts all 4 of these businesses together, they will have one of the five largest Life Safety businesses out of 300 in the area. When they do the consolidation and have one corporate office, they get rid of 3 major overheads. That savings should pay about 1/3 of the purchase monthly payments. This will add about 10% to the value of the businesses you will purchase.

I have a great deal more information to provide you about this opportunity. We have new Life Safety listings that we are adding every week. Quality is hard to find, but we are talking to thousands of Life Safety company owners and finding the best that are ready to work on their exit strategy.

Our seller is very sensitive to confidentiality and does not want us to release their name to anyone without their permission. We are communicating with over 11 qualified buyers. We only want to work with 3 buyers that we know can get to a settlement table with our seller. We need a non-binding LOI to get started as one of those 3 buyers.

Dennis V Riley, COACH to the Life Safety industries

Cell: 240-462-8220

Email: dennis@beltwaybrokerage.com

Please contact Dennis Riley or your Beltway Business Broker for more information or details.

PLEASE TAKE A CLOSE LOOK AT

www.LifeSafetyAssociation.org