security business for Sale in Florida

Pull the RMR (recurring monthly revenue) report. Alarm monitoring businesses are valued primarily on RMR — the contracted monthly payments from customers for monitoring services. Quality RMR (residential and commercial customers under multi-year contracts with auto-pay, low cancellation) trades at premium multiples (sometimes 30–50x monthly RMR). Verify the RMR amount, the customer count, the average contract length, the attrition rate, and the payment-on-time percentage.

Manned guarding is a labor business. Guard service companies provide armed and unarmed security personnel under contracts with commercial property owners, residential communities, retail centers, and event venues. The economics are labor-driven — you bill the customer at one rate and pay guards a lower rate, with the spread being the gross margin. Verify guard wages versus regional norms, turnover rates, and customer contract structure. Guard service businesses typically trade at lower multiples than alarm monitoring.

Verify the regulatory standing. Security businesses face heavy regulation: state security licensing for the business and for individual guards, firearms licensing for armed guards, alarm installer licensing for system installation businesses, monitoring station certifications (UL listing, Five Diamond designation for high-end), and insurance/bonding requirements. The cost and complexity of maintaining compliance is substantial. Verify all current licenses and what's required for new ownership.

Pull the customer roster and contract terms. Security businesses with strong commercial accounts often have heavy concentration — one large customer might represent 20%+ of revenue. Contracts are typically 1–3 year terms with annual renewals, but customer loss can be sudden. Verify the top customer revenue percentage, contract renewal dates, the relationship strength, and any RFP cycles approaching that might put existing business at risk.

Look at guard force tenure and recent hiring. The security guard industry has chronically high employee turnover. At lower wage levels, annual personnel turnover can exceed 100%. Turnover is generally lower at higher pay rates and among higher-quality employers. Recruiting, screening, training, and licensing new guards is a constant operational task. Verify the staff tenure pattern, the turnover rate, and the recruiting infrastructure. Companies with strong retention have lower training costs and better service quality.

Look at the systems and platforms used. Modern security businesses use sophisticated dispatching, scheduling, monitoring, and reporting platforms. Some companies still operate on legacy systems that don't support real-time visibility for customers or efficient operations. Verify the technology stack, any platform upgrades planned, and how the business compares to its competitors in operational sophistication.