Security Alarm Company
The only business valued at 40x a single month's revenue
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.
Avg Revenue
$350K
Profit Margin
55%
Acquisition Multiple
2.5x - 4x
Startup Cost
$25K - $80K
Difficulty
3/5
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.
Revenue Range
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
Quick Facts
- Category
- service
- Difficulty
- 3/5
- Acquisition Price
- $875K - $1.4M
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Security Alarm Company
$350K/yr • 55% margins • 2.5x–4x multiple
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