Security Alarm Company
The only business valued at 40x a single month's revenue
Bottom line
Strong cash-flow candidate with manageable operations.
Security alarm companies install and monitor burglar alarms, fire alarms, and cameras for homes and businesses. The monitoring contract — typically $20–$60/month per account — is the real asset. These accounts renew automatically, churn less than 5% per year, and trade at 35–45x monthly recurring revenue (MRR) — a valuation model unlike any other industry. A company with 300 monitored accounts at $35/month is worth $370K–$470K, even if it's a one-person operation.
How It Works
The company installs alarm systems at residential or commercial properties, often at low or no upfront cost, then charges a monthly monitoring fee. Monitoring is outsourced to a central station ($3–$8/account/month), so the owner pockets the spread. Revenue scales with account count. Acquisitions are typically priced at 35–45x MRR, meaning 1,000 accounts at $35/month = $35,000 MRR = worth $1.2M–$1.6M to a buyer.
BizBite verdict
Worth underwriting
Security Alarm Company 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.
Why it may work
- +Attractive 55% estimated margin profile
- +SBA dataset shows 6 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 561621 · Security Systems Services (except Locksmiths)
Deal size distribution
Deal flow over time
Financing profile
Recent comparable deals
| Closed | State | Loan | Implied deal |
|---|---|---|---|
| Feb 2026 | FL | $542K | $638K |
| Feb 2026 | OK | $999K | $1.2M |
| Nov 2025 | MS | $245K | $288K |
| Jan 2025 | TN | $3.3M | $3.9M |
| Jan 2025 | MS | $540K | $635K |
| Dec 2024 | CO | $400K | $471K |
| Dec 2023 | AZ | $1.1M | $1.3M |
| Oct 2023 | AR | $1.6M | $1.9M |
| Jul 2023 | PA | $630K | $741K |
| Nov 2022 | AR | $3.5M | $4.1M |
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 $193K SDE — can this deal service its own debt?
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
- +35–45x MRR valuation — the most premium exit multiple of any small business
- +Sub-5% annual churn on monitored accounts — customers rarely leave
- +Monitoring is outsourced — no 24/7 operations overhead
- +Recurring revenue is easy to forecast and finance against
Cons
- -Licensing required in most states (alarm contractor license)
- -Initial customer acquisition cost is high ($200–$500 per account installed)
- -Thin margins per account — requires scale to generate meaningful income
Best For
Patient operators focused on building an MRR base for a premium eventual exit; buyers of existing account books
Operating Costs
Key costs: central station monitoring pass-through ($3–$8/account/month), technician labor for installs, licensing/insurance ($3K–$8K/year), and customer acquisition. At 300+ accounts, the business becomes meaningfully profitable. At 1,000+ accounts, it becomes an acquisition target.
Where to Buy
Security Industry Association — industry contacts and M&A resources for alarm company deals
Security alarm company listings across the US
Buyer's Toolkit
Essential tools to get started
Some links may be affiliate links. We only recommend tools we'd use ourselves.
Ready to Buy? Start Here →
Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
Some links may be affiliate links. We only recommend tools we'd use ourselves.
Get the full breakdown in your inbox
Weekly boring business breakdowns
One boring business. Real numbers. Every week. Free.