Buy a Business

THIS BUSINESS IS ABOUT 42 YEARS OLD AND THE OWNER IS RETIRED. Most of the Managers now running the Business have been with the Business for well over 15 years. The Business has 3 experienced Technicians that take care of the 12 existing “Profit Centers”, below we will talk about the dozen plus Profit Centers they are ready to add to this Business. In six months it will have about 24 “Profit Centers” related to the Life Safety Industries.

THIS BUSINESS HAS 980 MONITORED ALARM SYSTEMS, THESES SYSTEMS PRODUCE $24,000 PER MONTH IN R.M.R. (REOCCURRING MONTHLY REVENUE). This is the most valuable asset of any Alarm-Security Business. The Best and Largest Life Safety Businesses sell their account for 40 times the R.M.R. this has been the market price for the last 20 years. The reason these accounts are so valuable is the fact that the life of an average Monitored alarm account is 9 to 11 years. This sellers accounts have had an average life of over 14 years. The Value of the Asking price has the accounts valued at $1.1 Million. The Building and Land is valued at $400,000 and has 3,400 sq. ft. The Operational side of the Business will do about $900,000 this year and when you add in the R.M.R. income of $300,000 the total Gross Sales will be $1.2 Million with a 10% net of $120,000 The seller wants $400,000 for the operational side of the Business. The Central Station is valued at $295,000 and will be talked about later. With the 4 items listed above the Business has been Listed for One Million Nine Hundred Ninety Nine Thousand Dollars ($1,999,000).

FIRST LET’S TAKE A LOOK AT THE OPERATIONAL SIDE OF THE BUSINESS THAT HAS BEEN VALUED AT THE $400,000. When the Owner slowed down and retired about 3 years ago, sales went from $900,000 down to a little over $500,000. The New Management team this year will take that to well over $1.2 million with a solid net of 15% or $180,000. The New Management is Focused on the Fire Alarm 4 major existing Profit Centers. New Fire Alarms being installed for New Construction and the General Contractors is a large active Profit Center. A most profitable Profit Center is doing the annual required Inspections. This Market area has over 10,000 Fire Alarms that need to be inspected each year. Life Safety USA will get more than their Market Share. These Inspection find many needed repairs and add-on new installations. This profit center is highly profitable. Most all these systems must be monitored by our Central Station.

THE CENTRAL STATION A MOST INTERESTING PART OF THIS BUSINESS TODAY HAS ONE PROFIT CENTER AND IN 6 MONTHS WILL HAVE 5 PROFIT CENTERS. The Central Station has been valued at $295,000. The Central Station has a negative cash flow of $6,000 per month. It now has about 980 accounts that they Monitor. These Accounts can be moved to one of our other Central Stations and our Cost to have them Monitored would be $4 per month per account. Today our Costs are $10 per month creating that $6,000 monthly loss. Our relationship with Beltway Nationwide Business Brokerage & Life Safety USA will give us the ability to move 3,000 of Life Safety USA accounts to this Central Station. 3,000 times a simple $4 monitoring fee adds $12,000 of new Income and puts the Central Station well into the “Black Ink”. Now the New Goal will be to have this Central Station to be the Number One Alarm Dealer Central Station with a focus on Fire Alarms with the Electrical Contractors and Sprinkler Companies and their Sprinkler monitoring. The Central Station will use its dozen employees that are on duty 24/7 to send special e-mails to millions of Business Owners to get their Alarm Monitoring and be the largest developer of Quality Sales Leads for Dealers and Life Safety USA “Partners”. We want to give you a lot more information about the Central Station.

LET’S TAKE A CLOSER LOOK AT ONE OF THE MOST VALUABLE PARTS OF OUR BUSINESS. BURGLAR ALARMS, ACCESS CONTROL, VIDEO-CCTV AND OTHER PROFIT CENTERS ON THE OPERATIONAL SIDE OF OUR BUSINESS. Burglar Alarms are the Foundation for most all Alarm Businesses, about 50% of all Businesses have Alarms. A big focus needs to be on Residential, Commercial & Industrial and I like to add Government Sales. Since our owner looked at retirement several years ago, sales went down from an average of 12 to 14 monitored systems to about 4 or 5 per month for the COVID -19 period which is just about gone. In 90 days we will be up to our 20 Systems per month, and then go to a real goal of 35 Systems per month and we do not do free or low cost systems. Our average Income of R.M.R.(Reoccurring Monthly Revenue) is $30 per month. We Credit $4 of that to the Central Station and $26 is gross profit and our only expense is Billing costs of $2. $30 times 20 accounts is another $600 of cash flow each month. You will want to make sure that you understand that each account is worth a solid $1,200 , I like to be conservative and say that every new account is worth a solid $1,000. 20 accounts is a real $20,000 of real equity gain THAT IS NOT ON YOUR BALANCE SHEET ANYWHERE. When you multiply that by 12 months that is a real equity gain of $240,000 for the year. When we show you how we move the New Monitored sales from 20 per month to 35 per month you will understand why the Life Safety Industries is the grestest ever Business to be in.

THE 7 PROFIT CENTERS FOR THE FIRE EXTINGUISHER BUSINESS IS OUR NEXT BIG ADDITION . Dennis Riley the Broker-“COACH” for this Business started his first Fire Extinguisher Business about 25 years ago (Beltway Fire Equipment in Beltsville, Md.) He started with a Jeep, no customers and one technician. 12 years later he had 17 Trucks on the Road, 21,000 Customers and sold the Fire Extinguisher Business for $1.7 million. He got into the Fire Extinguisher Business because he knew if he was in the door going after the Fire Extinguishers, it would get him first in line to get their Alarm-Security and other Life Safety Services. We sold over 3,000 Monitored Alarm accounts that we would have never sold if we were not in the doors with our Fire Extinguishers. Those 3,000 Alarms were SOLD to ADT for $3.4 Million. We want to do something similar with this Business. Fire Extinguisher are needed by everyone and must be inspected each Year. Life Safety USA has dozens of ways to always keep the Fire Extinguisher Group Growing. Every time we add a New “Route Sales Truck to your Business, we are adding another $240,000 of gross annual sales and another $100,000 of Equity Gain.

If you would like another SIX Pages of info about this Business please send me an E-Mail today.

Dennis V, Riley phone #’s and e-mail above.