High employee turnover (over 100% is common, but 200%+ is a warning). Expired guard cards or missing state certifications. Under-the-table payments to staff.
: You inherit patrol vehicles, uniforms, and reporting software. Key Steps to Acquisition 1. Define Your Niche
Security companies typically sell for . High-margin, long-term government or corporate contracts can push this multiple higher. 🚨 The Red Flag Checklist
Buying a security firm is ultimately a "people business." Success depends on your ability to manage a remote workforce and maintain high service standards to prevent contract churn.
: Hiring and vetting guards is the hardest part of the business.
: Labor is your biggest cost; ensure the "bill rate" covers guards, insurance, and overhead.
: Check for pending litigation regarding use of force or wage disputes. 4. Valuation