Recurring inspection and monitoring contracts
Code-mandated inspection agreements with schedules and renewal terms are the asset. Installation and construction work is valued far lower than the recurring base.
El Paso Owner's Guide · Fire Sprinkler, Alarm & Life Safety
Fire protection is the rare trade where the law does your selling: inspections are code-mandated, on a schedule, forever. Buyers — including some of the most aggressive consolidators in any industry — pay premium multiples for contracted inspection revenue, licensing depth, and technicians who stay.
The Local Market
Every warehouse, school, hospital, hotel, and commercial building in El Paso's fast-growing industrial base must be inspected on a code-driven schedule. That mandated recurring demand — plus a national consolidation wave in life safety — is why these companies command premium interest.
Code-mandated inspection agreements with schedules and renewal terms are the asset. Installation and construction work is valued far lower than the recurring base.
State licensing for sprinkler, alarm, and extinguisher work has qualifying-person requirements. Licensed employees convert your credentials into transferable value.
Inspections that generate repair work are a compounding revenue engine, and buyers model the conversion rate closely.
Signed installation backlog at real margin, plus certified technicians who stay, determine what the buyer can deliver after closing.
Free Estimator · No Email Required
Move the slider. This uses owner's discretionary earnings (SDE) — your net profit plus your salary, personal expenses run through the business, interest, depreciation, and one-time costs. Inspection-heavy companies command the top of the range.
$180,000 / year
Which of these are true today?
Illustrative Range
Estimated enterprise value
$693,000 – $1,098,000
That’s roughly 3.9× to 6.1× your owner’s earnings, before any real estate you own.
Every box you check is a lever you can still pull before you list. Owners who fix the books and the lease first routinely land at the top of their range instead of the bottom.
Illustration only — not an appraisal or an offer.
Step by Step
Three years of P&Ls and tax returns, reconciled, plus inspection contracts with schedules and renewal terms, revenue split between inspection, service, and installation, deficiency conversion rates, backlog, technician roster with certifications, and licensing structure.
Not a broker's opinion, and never a consolidator's opening number. We commission a certified valuation from an independent NACVA-credentialed appraiser — the caliber of report banks, buyers, the IRS, and courts rely on.
If the company's authority to operate rests on your personal license, that caps who can buy it and on what timeline. Qualifying employees before listing removes the ceiling.
State licensing and qualifier status, inspection documentation and code compliance, contract assignability, monitoring agreements, insurance and claims history, technician certifications, vehicle titles, WIP on installation jobs, and unpaid taxes.
No word to your customers, your technicians, or the companies you bid against. We market blind on capability and financial profile to vetted, financially verified buyers — including national life-safety consolidators — under NDA.
Offers, escrow, quality-of-earnings and contract verification, licensing transition, technician retention, earnout structure, and funding. We stay on it through closing.
Costly Mistakes
New-construction work ends when the job does. The recurring inspection base is what earns the premium multiple — build it before you sell it.
It is the single most common ceiling on value in this trade. Licensed staff is the difference between selling a company and selling your credentials.
Recurring revenue a buyer cannot verify or inherit gets little credit. Signed, assignable agreements are the asset.
The inspection-to-repair engine is a large part of your story. If you cannot show it, the buyer will not pay for it.
Certified techs are scarce and recruitable. Confidentiality until the right moment protects the capacity being valued.
Life-safety acquirers are among the most active in any industry, which means competition works in your favor — if you create it.
Questions Owners Ask
Straight answers, no hedging. If yours isn’t here, call us and ask it directly.
Inspection-heavy companies commonly trade between roughly 4 and 6 times owner's discretionary earnings, with contracted recurring revenue, licensing depth, and technician retention at the top of that range. Installation-dependent companies land below it. Only a certified independent valuation survives a lender's underwriting.
Because the revenue is mandated by fire code, recurs on a fixed schedule, and rarely leaves. It is among the most predictable revenue in any trade, and buyers finance predictability.
State fire protection licensing has qualifying-person requirements, and the buyer's entity must hold qualified licensing in its own right. If you are the only qualifier, that shapes both the buyer pool and the transition. Confirm requirements with your own counsel.
It depends on assignment language, and some customers require consent. Reviewing agreements before marketing prevents a mid-diligence problem.
Qualified buyers can access SBA 7(a) financing up to $5 million, and recurring-revenue trades are a favored lender profile. Larger companies frequently sell to strategic consolidators with their own capital. SBA pre-qualification is a preliminary, non-binding lender assessment, not a loan commitment.
Not from us. Your company is marketed blind to vetted buyers who sign a non-disclosure agreement before they learn who you are.
Where we work
Whether your fire protection company sits on the east side, downtown, out in the valley, or across the state line in Doña Ana County, the sale process is the same: verified financials, an independent certified valuation, and a confidential, competitive market of qualified buyers. We meet owners at a time and place of their choosing.
Fire Protection Company Owners · Confidential
One confidential conversation with a partner — not a coordinator. We will tell you where your numbers put you today, what would move the multiple, and whether now is your moment.