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BIZBITE

Fire Protection / Extinguisher Service

Compliance-mandated revenue, year after year

Bottom line

Worth studying, but do not buy without strong local proof.

Fire protection services inspect, maintain, and recharge fire extinguishers and suppression systems for commercial buildings. Fire code requires annual inspections — making this a compliance-driven recurring revenue business. Routes of 500+ accounts generate strong, predictable income.

Acquisition score
Margin · multiple · SBA data
68Strong
Avg revenue
$300K/yr
$100K–$800K range
Profit margin
35%
~$105K SDE
Multiple
2.5–5×
of SDE
Est. buy price
$263K–$525K
startup: $20K–$150K

How It Works

You visit commercial properties annually to inspect fire extinguishers, emergency lights, and suppression systems. Failed units are recharged, repaired, or replaced. Inspections are required by fire code, so customers must comply. You bill per extinguisher/device inspected, typically $15-$40 each.

BizBite verdict

Worth underwriting

Fire Protection / Extinguisher Service has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

68Strong
medium data confidence · 52/100medium financing fit

Why it may work

  • +Attractive 35% estimated margin profile
  • +SBA dataset shows 269 recent comparable loans

Be careful

  • !Source link status has not been verified yet
  • !No last-checked date yet
  • !No category operating model yet

SBA 7(a) data

Real acquisitions in this category

Change-of-ownership loans · NAICS 238220 · Plumbing, Heating, and Air-Conditioning Contractors

Deals tracked
724
269 in last 24 mo
Median loan
$711K
$299K–$1.6M p25–p75
Implied deal size
$836K
median · ~85% LTV
Charge-off rate
not enough resolved loans

Deal size distribution

<$150K
72
$150K–500K
217
$500K–1M
151
$1M–2M
154
>$2M
130

Deal flow over time

12-month momentum
−21.9%
deal volume vs prior 12 mo
Median loan Δ
+44.7%
118 recent · 151 prior

Financing profile

Median rate
9.50%
14% fixed · last 24 mo
Median term
120 mo
standard 10-yr
Collateralized
0%
of loans secured
Median jobs
11
supported per deal
Top lenders in this space
Live Oak Banking Company167
The Huntington National Bank51
First Internet Bank of Indiana23
Old National Bank14
Byline Bank13
Where deals happen
FL83
TX64
CA53
PA41
MI32
CO32
WI31
NC27
OH26
IL26

Recent comparable deals

ClosedStateLoanImplied deal
Mar 2026MI$1.8M$2.1M
Mar 2026FL$700K$824K
Mar 2026NE$800K$941K
Mar 2026WI$284K$334K
Mar 2026PA$1.3M$1.5M
Mar 2026TX$175K$206K
Mar 2026PA$75K$88K
Mar 2026TX$1.3M$1.5M
Mar 2026LA$320K$376K
Mar 2026WI$1.2M$1.4M
Volume rank #7/544Deal-size rank #263/544Momentum rank #243p90 loan: $2.8MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Deal Calculator

Priced off $105K SDE — can this deal service its own debt?

2.03×
DSCR · Lender-comfortable
Purchase multiple — 3.5× SDE ($370K)
Category range: 2.5×–5× SDE
Down payment — 10% ($37K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 9.50%
SBA median for this category: 9.5%
Loan term — 10 years
SBA median for this category: 120 months
Purchase price
$370K
3.5× of $105K SDE
Cash to close
$48K
$37K down + ~3% closing
Debt service
$4K/mo
$52K/yr on $333K loan
Cash-on-cash
111%
cash back in ~11 mo
Debt service coverage · what the lender sees
2.03×+$4K/mo after debt
Most SBA lenders want ≥1.25× coverage; 1.5×+ is a strong file.

SDE = revenue × margin estimate for this niche; it includes owner compensation, so budget your salary out of cash flow. Excludes working-capital injection, capex reserves, and taxes. Actual SBA terms vary by lender and borrower.

Pros

  • +Compliance-driven — customers legally must have annual inspections
  • +Very high customer retention (95%+)
  • +Scales with routes — add technicians and trucks
  • +Additional revenue from installations and replacements

Cons

  • -Requires state licensing and certifications
  • -Route building is slow initially
  • -Some seasonal concentration in inspection renewal months

Best For

Route-builders who want compliance-driven recurring revenue with minimal churn

Operating Costs

Costs include vehicle fuel and maintenance, recharge chemicals, replacement inventory, technician wages, licensing, and insurance. Labor is the primary cost when scaling beyond owner-operator.

Where to Buy

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