How To Sell Your Security Integrator

Author: Brian Karas, Published on Jul 19, 2016

Consider this a tutorial in how to sell a security integrator. If you own an integrator, want to buy one or even are thinking of starting your own one day, this is a must read.

We spoke with an M&A advisor specializing in security integrator sales, Final Image, who shared their experiences on integrator deals. The post covers:

  • How much an average security integrator is worth / can get in a sale
  • How much the sales price is driven by RMR 
  • How to know when it might be time to sell your business
  • How long it takes to get a sale completed
  • How much it costs to hire an M&A advisor and prep for sale
  • What to expect after the sale

******** **** * ******** ** *** ** **** * ******** integrator. ** *** *** ** **********, **** ** *** *** or **** *** ******** ** ******** **** *** *** ***, this ** * **** ****.

** ***** **** ** *&* ******* ************ ** ******** ********** sales,***** *****, *** ****** ***** *********** ** ********** *****. *** **** covers:

  • *** **** ** ******* ******** ********** ** ***** / *** get ** * ****
  • *** **** *** ***** ***** ** ****** ** *** 
  • *** ** **** **** ** ***** ** **** ** **** your ********
  • *** **** ** ***** ** *** * **** *********
  • *** **** ** ***** ** **** ** *&* ******* *** prep *** ****
  • **** ** ****** ***** *** ****

[***************]

Valuing ** *********** ********

***** *** **** ******* **** *** ****** *** ********* ** a ******* **********, *** * ***** ******** ***** ** *.* times ****** ***** *** ** ******* *********** ********. * **** ******* *********, and *** ****** ** ********* ******* ***** **** ** *** would ** ** *** * ******** ** *** ********* ****** of * ******** (** ******* *-** *****) **** ****** ********* profit ****** ***** **-**% ** *******.

****, ** ********** *****, ***, $** ******* ******** **** * 10% ($*,***,***) ********* ****** ***** ******* * $* ******* **** (5 ***** $*,***,*** ********* ******, ** *.* ***** $**,***,*** *******).

**** ******* **** ***** ***** ****** **********:

  • ****** ********* ******* ******* ********** (******* ** **** ****** *****)
  • ******** ******** **** ****
  • **** ****** ****

** *** ********, ***** ***** ****** *********:

  • ***** ** ********* *****/****** **** ** ***********
  • **** ** *** ********* (**** ** ******** ********* *** ********** annual *****)
  • ********* ** ******* ********** (** *** *** ** **** **** business ** * ****** ** *******)
  • ********** *** ******* (**** **** ~**% ***** *******)

RMR ****** ** *****

*********** **** ****** *** *** **** *** *+ ***** **** of *********** **** ****** ***. *** ** ********** ****** ******* *** the ********, *** ** ** ****** **** ****** **** ******** sales.

**%-**% ** ******* ** *** ** ********** * ******* **** in ***** ** ********* *** **** ******** ***** *********. ******* so *** *********** **** *** **** *% ** ******* **** RMR *** ** **** ** * ******** ************** *** *** business.

******* ** $*,***,*** ** *** ******** ** **** **** ********* and ***** **** **** **** ******* $*,***,*** ** ******* *****, integrators *** ****** ** **** ***** ******** ** *** ****** need ** *********** ** ******** *** ***** ** *******. 

*** ********** *** ********** *** *******, **** ***** *****, *** to ******* ******** ***** ** ******* ************.

When ** *** ***** **** ** ****

** **** ******** ** ******** * ******* *******, ** *** be ** ********* **** *** **** ***** *** ******* ** far ** *** *** ** *** ******* *************.  ****** ******* points ********* **** ****** * *** ******* *** *** ******* ** annual *****, ****** **** *** **** ** ****** ** ***** factors **** ************* ** ********* *******.

* ******** ** ********* *****, ** ****** ********* **** *** significant *** **** **** **** **** ** ******** (>* ****) can **** ** ********** * ******** ********* **** *** *** a ********* ********* ** ** * **** **** ** **** a ****.

*********** *** **** ***** *** ******* ****** *** ******** **** indicates * **** **** ** *** ***** ******* ** *** sale.  ** ***** ************ *** ***** ****, ****** ******* ** nationally, ** *** ** ********* **** ********* **** ****** ** capital *** ****** ************ ** **** ***** ** * ***** of ************** *********.

****** **** ** ***** ** *********** *** **** ******** ** is **** ** **** *** *******, *** ** **** **** more *** ******** ******* **** ******** ****.  ** ******** *** see ********* ** ******* **** ******** **** ***** ************* ********** to ****** * ******** ******* *******.  ****** ***** ********** ** this ****, ****** ** *** ** ********** ** ****** ****** the ******* ******* **** ** **** ** ******* ** **** afloat.

How **** ** ****

********** ** ********** **** **** *** ****** *******. ***** ***** recommended *********** **** * ***** *****, *** **** ** **** but ** *** *** ******** ** *** **** ******** ***** for ******* *********. ***** *** *** **** ******* ** *** ******* is **** ******* *** *** ****** ** ******.

************ *** ******* *** ***** * **** ** ******* ** the *********** **** ** ******* *** ******* ** *** ******. ********* like ***** ***** *** ** ***** ** **** ***** ** *********** to ** * ***-**** *** *********. **** **** ******** ********* ******** **** the ******** ***** ** *** **** **** ** ******* **** before ******* ** ********* *********.

*** ******* ** ******* *** ******* ** *** ****** *** completing * **** *** **** *-** ******. **** ****** **** to **** **** ********* *********, **** **** **** ** ******** their *** *** ********* ******* ** ** ******* ********** *** come ** **** * *********, *** **** ********** *** ****** sale.

Advising / *********** ****

** ********** ***** *** ********* **** ***** ******** ** ***** own, ********* ** ***** ********* ********** *** ***** ****** ** prospective ******.

***** *** *&* ********, **** ***** ***** **** **** **** the *******. ******** **** *****:

  • ***-**** *** ********* ******* **** ******* *** ******** *** **** up **** ******** *** *********** *** ********* ******* ***** **** ********* cost $*,***-$**,***.
  • ********* ** "**** ****", ***** ** * ***** ***** **** ** the ******* ** **** ** ********* ********* ***** *** *******. This ******* *** ***** ******* $**,*** ** ***** ** ********.
  • ******* ******, ******* **** ************, ******* *** ****, ***. ********* is ******* ** * ********** ** ******* ***** ***** (******* from *-*% **** ***** ** **** ***** *** ****** ***********).

Post-Sale ************ / ****-**** / ***********

****** *** ********** ***** ** *********** ****** ****** ** ** required ** **** ** ***** *** ****. *** ********* *** considered ** ** * ***** **** ** *** ***** ** the *******, *** **** *** **** ** **** *** ******** is "******".

** **** ***** *** ******** *****(*) **** *** ** **** in **** **** *** **** ******, ******* ******* ** ****-*** over * *-* **** **** ****.  ****** **** ****** *** owner(s) ***** *** * ****** **** *** ********* *******, **** their ****-*** ******* **** *** **** ** ************ **** **** agreed-upon ****. ****-**** *** ***** **** ** *********** ******* **** continued ****** ** ************* ** *** *******, *** ** ***** targets *** *** *** ***** ********* *** ******** **** ** adjusted **** ***********.

Comments (5)

****** *** *** ****. **** ****** ****** *** *** ** course ** ******* ** *** *** ******. ***'* *** ***** a **** ******* ******* ** *** ****** * *?

**** ***** *** *** ** *** ******* *** ****** *** a ******** ******* ***** ********** ** ****?

**** ****** ****** *** *** ** ****** ** ******* ** the *** ******. ***'* *** ***** * **** ******* ******* is *** ****** * *?

** ** *****, **** *******.

****'* * **** ***** ****** ** *******. ***** ***** ***** an ******* ****** ***** *** *********** ** **-**% **** ** average ********* ******** ** * - * ***** ******, ***** is *********** *.** *******. **** ** ********** **** **** ** have **** ** ****.

****** *** **** **** **** ******* *** **** ** ******** more ** ********** ******* (*.*., *** **** *** *** *** owner *** ***** ****** **** ******** / *******).

****, * ******* ******** ** ****** *** **** ****** ** understand **** ** ****** ***. ***, ** **** *****, ** acquirer **** ********* ********* ***** ******* *** ****** ********* ***********.

"** **** ***** *** ******** *****(*) **** *** ** **** in **** **** *** **** ******, ******* ******* ** ****-*** over * *-* **** **** ****. ****** **** ****** *** owner(s) ***** *** * ****** **** *** ********* *******, **** their ****-*** ******* **** *** **** ** ************ **** **** agreed-upon ****"

**** ****** **** * *** ****. ***'* *** ** **** a ******* **** **** $*** ** ***** *** **** **% profit **** * $**** ***** ******.******* ***** *** ** ****** at $*.**. ****** ***** **** *** **** *** * ***** and **** **** $****. ***** * *****, *** ******* ***** have **** $*.** ** *** ***** ** ** ****'* **** (that's ** *** ******* ** *** *******), ******* *** ***** with **** ** *** ** ******* ********* ***** ** ** getting *** ***** ** *******. **** ** * ******* ****? Would *** ****** ****** ** ********** ** $*.** ** ** was ***** ** ****?

* **** **** ******** ** ***** *****, *** **** *** their ***** ********* **** ********:

*** **** ******* ** **** ** *** **** ** *** sale - *** ***** ***** **** ******** ** * **** amount ** *** ******** ***** - *** $* ******* ** this **** - ***** ** *** *** ** ******** ******* return. ** ******* - *** ******** ** **** ***** ** a ******** ** ******* ** **** - *** ** ** crystalizing *** ***** ***** **** *********. **** * ***** ***** be * **** ******* - ** ***** ********* *** * shorter ******* ****** ** * ** * ***** ***** ********* the ****.

******* *** ** **** ** ** ** **** *** ******* concept ** ********* **** ** ****** ** * ********* ****** number *** ******. ** - ***** ***** ******* ** ***** 4 * = $* *******. ****** ***** * ***** = 9 *******. **** ** ********** ** * ******* ** ***** plus * * **** ******* ** $*.* *** ****.

** *** ** **** **** ** *******:

*** ** *** **** ****** ******* *** * ****** **** push *** * ****** ****** ******** ** ****** ******** (*.*., "Yes **. *****, *** ** ******* ** ***** **** ******* the *** ****** ****** **** ** '*' *** **'** ******* at '*'). ** ***********, ****'** ***** ** * **** ***** with ** *********** **** *** ******** ***** ** ******** ****** upon ****** ****** ******* *** ********.

*******, ***** **** ****** **** ******* ** *** **** ** yrs ** ******* *******, ********** **** *** ******** ******* ** to ** ********** **** *******- *** ****** ***** ********. *** often *** ****** **** ****** **** *** ********* ******* ********** impacted *** ******** (******** ********* *********, ******** ***** ******, ***..) and *** ** ** ** ***********. **** *** ** ********* for **** *******.

***** ****** ** **** ****.

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