El Paso Owner's Guide · Alarm Monitoring, Access Control & Guard Services

How to Sell a Security or Alarm Monitoring Company in El Paso, Texas

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.

(915) 318-2226
24×–40×
Common valuation range as a multiple of monthly recurring revenue
$1M+
Range where established security companies commonly transact
100%
Confidential — customers and technicians never know

The Local Market

What buyers pay for in an El Paso security company

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.

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.

Attrition rate

Annual account attrition is the number that determines your multiple. Documented low attrition can be worth several turns.

Commercial versus residential mix

Commercial accounts, access control, and video monitoring typically carry larger RMR and stickier relationships than basic residential alarms.

Licensing, technicians, and guard contracts

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

What is my El Paso security company worth?

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

$40K$1.2M

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

The six steps that get a security or alarm company sold — in that order.

  1. 01

    Document RMR, attrition, and contracts

    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.

  2. 02

    Commission an independent, certified valuation

    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.

  3. 03

    Clean up contracts and reduce attrition

    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.

  4. 04

    Fix what diligence will find

    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.

  5. 05

    Market it confidentially — to more than one buyer

    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.

  6. 06

    Negotiate, survive diligence, and close

    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

Six mistakes that cost security or alarm company owners real money.

01

Selling an installation business

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.

02

Not tracking attrition

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.

03

Month-to-month or unsigned agreements

Contract term and assignability are literally what the buyer is purchasing. Missing paperwork reduces the account base they will pay for.

04

Accepting a per-account offer without testing it

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.

05

Ignoring licensing structure

Alarm and guard licensing has qualifying-person requirements. If the company operates on you personally, that caps who can buy it.

06

Letting technicians or officers hear it early

In guard services especially, staff departures take contracts with them. Confidentiality protects the revenue being valued.

Questions Owners Ask

Security or Alarm Company owners ask us these first.

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

Security or Alarm Company owners we represent across El Paso, West Texas, and southern New Mexico

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.

  • El Paso
  • West El Paso & Upper Valley
  • East El Paso
  • Northeast El Paso
  • Central & Downtown
  • Horizon City
  • Socorro
  • San Elizario
  • Clint & Fabens
  • Canutillo
  • Anthony, TX & NM
  • Fort Bliss corridor
  • Las Cruces, NM
  • Sunland Park, NM
  • Doña Ana County
  • Alamogordo & Deming, NM
  • Van Horn & Fort Hancock
  • Midland & Odessa

Security or Alarm Company Owners · Confidential

Find out what your recurring revenue is actually worth.

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.

  • Confidential — nothing is shared or listed without your written consent.
  • A reply within one business day, usually the same afternoon.
  • No fee, no obligation, and no pressure for the first conversation.
What's this about?
How should we reach you?

Your information goes only to our team. We never list, market, or mention your business to anyone without your written permission.

Built on accuracy. Sold with certainty.

El Paso, Texas

(915) 318-2226

Monday – Friday · 9:00am – 5:00pm MT

Serving El Paso County, Doña Ana County, West Texas, and businesses across all of Texas.

“Plans fail for lack of counsel, but with many advisers they succeed.”

Proverbs 15:22

Valuation ranges and estimator results on this page are general market illustrations for education only. They are not an appraisal, an offer, or a prediction of any sale price, and nothing here is legal or licensing advice. Every business is valued on its own verified financials by an independent NACVA-credentialed appraiser.

Covenant Business Brokers facilitates the confidential sale and acquisition of privately held businesses. Engaging our services does not guarantee the sale of any business or any particular price, timeline, or outcome. Every transaction depends on factors outside any broker’s control, including market conditions, financing availability, and buyer interest.

Valuations. Our complimentary Broker’s Opinion of Value is an informal estimate of likely market value prepared by a business broker for the purpose of evaluating a potential sale. It is not a certified appraisal and should not be relied upon for tax, legal, lending, litigation, or financial reporting purposes. Certified business valuations are prepared by independent NACVA-credentialed appraisers under a separate, client-paid engagement and are not included with every listing.

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Results and testimonials. Testimonials and case studies reflect the experiences of individual clients and are not a promise or prediction of similar results. Past transactions are not indicative of future outcomes.

Financing. SBA pre-qualification is a preliminary, non-binding assessment made by a lender, not a loan commitment or approval. Covenant Business Brokers is not affiliated with or endorsed by the U.S. Small Business Administration or any lender.

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