Recurring monthly revenue and contract term
Contracted RMR with remaining term, automatic renewal, and rate escalators is the core asset. Installation and project revenue is valued far lower.
El Paso Owner's Guide · Alarm Monitoring, Access Control & Guard Services
Recurring monthly revenue is the most valuable asset class in small business, and alarm monitoring is its purest form. Buyers pay premium multiples for contracted RMR with low attrition — and far less for installation work that ends when the job does.
The Local Market
Commercial development, warehouse and logistics facilities, retail, and residential growth all drive demand here, and national alarm buyers actively acquire account bases. Guard-service companies price differently — on contracts and margin — but the logic is the same: recurring revenue wins.
Contracted RMR with remaining term, automatic renewal, and rate escalators is the core asset. Installation and project revenue is valued far lower.
Annual account attrition is the number that determines your multiple. Documented low attrition can be worth several turns.
Commercial accounts, access control, and video monitoring typically carry larger RMR and stickier relationships than basic residential alarms.
Licensing structure, retained technicians, and for guard companies signed contracts with real margin and manageable overtime all shape both price and buyer pool.
Free Estimator · No Email Required
Move the slider. This uses owner's discretionary earnings (SDE) for a directional read. Alarm companies are most often valued as a multiple of recurring monthly revenue, and guard companies on earnings — which is why a certified independent valuation is essential here.
$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 an account-level RMR schedule with contract dates and terms, attrition by year, average account age and rate, commercial versus residential split, and installation revenue separated out.
Not a broker's opinion, and never a national buyer's per-account offer. We commission a certified valuation from an independent NACVA-credentialed appraiser — the caliber of report banks, buyers, the IRS, and courts rely on.
Current, assignable agreements with remaining term and documented low cancellation are what earn the top of the range. This work pays for itself many times over.
Licensing for alarm and guard operations, technician and officer licensing, central-station agreements and assignability, customer contract enforceability, false-alarm and municipal permit compliance, equipment financing, dealer-program obligations, and unpaid taxes.
No word to your customers, your technicians, or your officers. We market blind on account and financial profile to vetted, financially verified buyers — including national account acquirers — under NDA.
Offers, escrow, RMR verification and account attrition holdback terms, contract and central-station assignment, licensing transition, staff retention, and funding. We stay on it through closing.
Costly Mistakes
Project revenue earns a fraction of what monitoring RMR earns. Building the recurring base before selling is the difference between a modest sale and a life-changing one.
It is the single most important number in this category. If you cannot produce it, buyers assume the worst — and their holdback terms will reflect it.
Contract term and assignability are literally what the buyer is purchasing. Missing paperwork reduces the account base they will pay for.
National acquirers buy account bases at multiples set by their own models, often with meaningful holdbacks. Competition and an independent appraisal are how you test the number.
Alarm and guard licensing has qualifying-person requirements. If the company operates on you personally, that caps who can buy it.
In guard services especially, staff departures take contracts with them. Confidentiality protects the revenue being valued.
Questions Owners Ask
Straight answers, no hedging. If yours isn’t here, call us and ask it directly.
Monitoring companies are commonly valued as a multiple of recurring monthly revenue, frequently in the range of roughly 24 to 40 times RMR depending on attrition, contract terms, and account mix, and cross-checked against a multiple of earnings. Guard-service companies are valued on earnings and contract quality. Only a certified independent valuation survives a lender's underwriting.
Recurring monthly revenue is the contracted monitoring fee your accounts pay every month regardless of whether anyone visits the site. It is predictable, transferable, and financeable, which is why buyers pay far more for it than for installation work.
Frequently. Many alarm transactions include an escrow or adjustment if accounts cancel within a defined window, so how attrition is defined and measured deserves close attention.
Contract assignability and central-station agreement terms both matter, and some require consent. Reviewing them before marketing prevents a mid-diligence problem. Confirm specifics with your own counsel.
Qualified buyers can access SBA 7(a) financing up to $5 million, and recurring-revenue monitoring is a favored lender profile. Larger account bases often sell to strategic acquirers 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, and account-level detail is released in stages at your direction.
Where we work
Whether your security or alarm 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.
Security or Alarm 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.