Selling a Security Technology & Hardware Business

Most security integrators sell on a multiple of cash flow (usually SDE or EBITDA), and price moves with what buyers can prove and finance. Durable, contract-backed RMR, consistent gross margin by job type, and a workable license and qualifier bench usually support stronger valuations. Heavy project mix, GC dependence, thin tech bench, or weak service metrics often pull multiples down. Start with Rejigg’s free valuation calculator, then sanity-check the result against RMR assignability, churn, and job-costing proof.

No, although it depends on how complex your deal is and how comfortable you are running a process. Brokers often charge 5–10% and mainly provide buyer outreach, NDAs, and process management. In security integration, buyers usually want operational evidence early, like licensing maps, ticket aging, backlog by stage, and RMR contract terms, so a buyer-ready data room matters more than a glossy deck. Rejigg provides pre-vetted buyers, digital NDAs, secure document sharing, and offer tracking. Start with the preparation guide.

Often yes, especially when cash flow is documented and RMR is contractual and assignable. SBA lenders tend to scrutinize customer concentration, margin stability, and license or qualifying-agent transfer because a licensing gap can stop revenue. They also focus on working capital needs created by hardware buys and AR timing on project work. Use Rejigg’s SBA loan calculator to model payments, then be ready with clean financials, RMR detail, and a transition plan.

Working capital is often a real negotiation point because integrators can front hardware, carry AR for 45–90 days, and wait on payment until commissioning or closeout. Most buyers expect a “normal” level of net working capital at close, then true-up after closing based on the target definition. If AR is bloated or AP is stretched, expect a price adjustment. Build a monthly working-capital trend and tie it to backlog and WIP so buyers can see the pattern. Rejigg’s deal tracking helps you compare offers with different working-capital targets.

Earnouts show up when buyers worry about RMR retention, service performance, or project margin volatility on backlog. Common earnout metrics in security include RMR retained at 6–12 months, gross margin on converted backlog, or new bookings from specific channels like property managers or GCs. Definitions matter. You should spell out how property sales, service credits, and central station pass-throughs affect “RMR.” If you accept an earnout, negotiate measurement rules, reporting rights, and operating control. Rejigg’s offer comparison helps you weigh earnout-heavy terms against higher cash at close.

Buyers usually start with financials, then ask quickly for operational proof. Expect requests for job-level margin history (bid vs actual labor), backlog by stage (signed, released, buildable), RMR detail by service type with contract terms, service ticket aging metrics, and a license and credential map by jurisdiction. Many will also ask about vendor programs like dealer tiers, rebates, and distributor credit terms. Rejigg’s data room is built for this upload-once workflow, with controlled access under NDA. See the due diligence checklist.

Many deals close in 3–6 months, but timing depends on licensing, customer consent requirements, and how clean your backlog, WIP, and RMR documentation is. Deals slow down when buyers cannot confirm qualifier transfer, assignability, or service performance without weeks of back-and-forth. The fastest processes happen when the seller can answer early questions with exports and documents, including ticket aging, backlog stages, and contract samples. Rejigg helps by pre-vetting buyers, handling NDAs digitally, and centralizing diligence in one data room. If timing is tight, start prep 30–60 days before listing.

Tax impact depends on whether you do an asset sale or stock sale and how the purchase price is allocated across goodwill, equipment, software or IP, and non-compete. In security integration, allocation can matter because vehicles, tools, and inventory may be treated differently than customer relationships and RMR. Buyers often prefer asset deals to limit legacy liability, especially when monitoring contracts, central station relationships, or dealer agreements are involved. Talk to a tax advisor early and model after-tax proceeds across a few structures. Rejigg’s deal tracking helps you compare offers by estimated net proceeds.

Most buyers treat vans, tools, ladders, testers, and IT gear as part of normal operations and value the business mainly on cash flow. Large fleets or specialized equipment may be valued separately or used in purchase-price allocation. In diligence, the bigger issue is proof: condition, titles versus leases, and whether the equipment list matches what is actually on hand. Build a list of vehicles and major gear with VINs, lease terms, and maintenance history. Store it in Rejigg’s data room so buyers do not assume the worst and discount the price.

Sometimes, depending on how separable your accounts are. Buyers will look at who holds the central station relationship, whether contracts allow assignment, how billing and collections are handled, and whether service obligations are bundled into the monitoring promise. A common friction point is operational entanglement: if truck rolls, inspections, or access-control programming are required to keep cancellations down, the buyer may require a service agreement or transition services. Rejigg’s buyer marketplace can help you find monitoring-focused buyers while keeping carve-out terms and diligence organized.

Strategic integrators often pay up when your geography and platform stack fit their operations because they can gain dispatch density, improve vendor pricing tiers, and share programming and commissioning talent. Financial buyers usually focus on management depth, reporting, durable RMR, and repeatable job costing. Both will care about licensing transfer and key technician retention, especially for access control and networked video. Rejigg’s buyer vetting and direct messaging make it easier to run parallel conversations and compare offers on structure and certainty. Start with finding buyers.

It depends on assignment clauses and the customer environment. Many service agreements and monitoring contracts allow assignment with notice, but some require consent, especially in government, healthcare, education, and other secured facilities. Buyers also look for change-of-control triggers in vendor and dealer agreements, including central station, VMS licensing, access-control software, and cellular programs. Before you go to market, summarize assignability and notice requirements by contract group, and upload representative agreements to Rejigg’s data room under NDA so buyers can diligence without overreaching on price.

Non-competes usually restrict the seller from competing in a defined geography and service scope for a set period, and they are often paired with a transition services agreement (TSA). In security, TSAs commonly cover qualifier continuity, customer introductions to key property managers or GCs, and support for complex cutovers where site knowledge and programming history matter. The details vary by market and buyer type. Negotiate clear hours, responsibilities, response expectations, and what is included versus billable. Use Rejigg’s transition planning guide to structure it.

Confidentiality is especially sensitive in security because customer site lists, system details, and vendor pricing can create real harm if they leak. Most sellers use staged disclosure: share high-level financials and mix first, then release customer names, site details, and vendor terms only after the buyer is qualified, under NDA, and far enough into diligence. Some deals also use redacted contract samples until later. Rejigg supports this with pre-vetted buyers, digital NDAs, and a permissioned data room where you control who sees each file and when.

Deals most often break when the basics do not hold up under proof. Common issues include qualifier transfer that does not work on the buyer’s timeline, RMR that is less assignable or more cancellable than represented, job margins that cannot be supported with job-level costing, or service operations with old tickets and unbilled labor. Vendor risk can also surface late, such as dealer status that cannot transfer or distributor credit constraints. You can avoid many of these by organizing the evidence early in one diligence package. See due diligence and closing.

Yes, because clean books reduce retrades and make SBA and conventional financing easier. Security buyers typically want installs, service, and monitoring or managed services separated, with add-backs supported by payroll detail and receipts. They will also look closely at how you treat hardware purchases, inventory, and project billing and closeout since those drive working capital. Rejigg’s QuickBooks integration can pull financial data into a buyer-ready data room so you spend less time rebuilding spreadsheets and more time answering operational diligence questions with proof.

Yes, as long as the lumpiness is explainable and the margins are consistent. Buyers usually accept project-heavy integrators when job gross margin holds by job type, backlog is signed and buildable, and working-capital swings are predictable given hardware buys, AR timing, and pay-when-paid terms. A real service and RMR base helps, especially when service metrics are controlled. Bring closed-job margin history, backlog stages, and billing cadence so the buyer can model cash. Rejigg helps you package those artifacts and compare offers that price project volatility differently.

Compare offers on risk and certainty, not just the headline price. In security deals, you usually want to line up cash at close, seller note terms, earnout triggers (often tied to RMR retention), working-capital targets and true-ups, and any holdbacks tied to licensing or customer consent. Also, evaluate operational fit, including platform overlap and technician bench, because that can drive churn and affect earnouts. Rejigg’s offer dashboard lets you compare terms side-by-side so you can pick the best risk-adjusted outcome. See negotiate a deal.