When you want to make plans for the future in regards to your business, you need to know where you stand. A business valuation is the first step towards reaching your goals.
If you want to sell your company you need to know what it is worth. If you want to expand and buy another business you want to know what you are buying into.
- You want to sell your interest in the business.
- Your partner wants to sell their interest in the business.
- You are looking for financing.
- For estate planning reasons
- You are going through a divorce or separation
- You simply want to know what your company is worth.
It is important to understand that a security business very often has Recurring Monthly Revenue (RMR). RMR gives rise to a different valuation than the standard multiple of earnings valuation. Instead of strictly relying on multiples of earnings, cash flow or EBITDA, the alarm industry also uses multiples of (RMR) to value the monitoring revenue. HSSI has developed a template and has lots of industry experience in evaluating what the RMR in the security industry is worth.
In addition we have worked in the fire industry to value companies there as well using a mixture of a multiple of RMR for fire inspection revenue and a multiple of earnings for the rest.
We do valuations that are accurate and will not cost too much.