How do I sell my
Security Systems
business?
Business Advisors of America helps security systems business owners document RMR quality, demonstrate low attrition rates, and position the business to security platform consolidators and individual operators. We present your RMR base as an institutional income stream that buyers can underwrite with high confidence.
Why sell your
Security Systems
business?
Security systems companies are prized acquisition targets because of the recurring monitoring revenue that comes with them. Buyers pay premium multiples for the predictable monthly billing, the high retention, and the durable customer relationships, and private equity backed platforms are consolidating alarm and integration firms to build national monitoring bases. That competition has lifted valuations for operators with clean recurring monthly revenue and solid documentation. The owner base in this trade is aging, so more companies will reach the market as founders retire. Selling ahead of that supply means less competition and stronger terms for you. The business also demands ongoing reinvestment as technology moves toward cloud video, smart access, and integrated monitoring, and keeping licensed technicians on staff is a continuing cost. A larger acquirer can absorb those pressures while paying up for your monitored accounts. If you are considering retirement, stepping back from daily operations, or locking in today elevated multiples while consolidation is in full swing, the timing strongly favors a sale now.
frequently asked questions
We’re here to answer your questions.
Here's where we answer the most common questions about
Security Systems
How is my security systems business valued?
Security systems businesses are valued on a multiple of EBITDA, typically 3.0x to 4.9x. RMR accounts trading at 35x to 45x monthly revenue, attrition below 8 percent, automated billing, and a diverse account mix all push toward the upper end.
How do I document my RMR separately from installation revenue?
We help you pull and present RMR data separately from project and installation revenue. Buyers apply a premium multiple to RMR and a lower multiple to project revenue. Separating these two streams clearly in your financial presentation maximizes your total valuation.
What attrition rate do buyers expect?
Buyers prefer attrition below 8 percent annually. Higher attrition signals that customers are canceling monitoring after initial contracts expire, which compresses both the RMR value and the overall business multiple. We help you document your attrition history accurately.
How do I handle legacy monitoring systems that need upgrading?
We help you assess which upgrades generate more value than they cost and which are better negotiated as price adjustments in the deal. Modern IP-based monitoring systems command significantly higher RMR multiples than legacy analog systems.
How long does it take to sell a security systems business?
Most deals close in 4 to 9 months. Businesses with low RMR attrition, documented account bases, automated billing, and diverse industry mixes tend to move faster and at premium prices.
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