If you're running a fire, security, or alarm integration business, chances are you’ve fielded a few calls from buyers. Maybe more than a few. Private equity firms. Industry consolidators. All sniffing around, looking for their next acquisition.

At first, it might feel like a pat on the back. You’ve built something worth buying. But then come the harder questions: Should you take the call? What’s your company really worth? And how do you keep your team steady while you figure it out?

That’s where Rory Russell comes in. As Founder of Acquisition & Funding Services (AFS), he’s helped commercial fire and security business owners navigate buyer interest and succession for over 25 years. 

With more than $1 billion in deals closed, Russell shares what works, what backfires, and how you can stay in control, whether you’re thinking of selling soon or just keeping your options open.

Why Buyer Interest Is Heating Up

Right now, small to midsize fire and security firms are hot. Buyers aren’t just after equipment and customer lists. They want the recurring revenue from monitoring, test and inspect, and service contracts. That monthly cash flow is rock solid, even when new construction slows down.

Banks love it too. Service contracts count as collateral, so buyers can borrow at favorable rates and pay more for your company. It’s even better if your techs already hold state licenses and NICET certifications, that labor force adds serious value in today’s talent-short market.

Russell says many of these firms have also modernized with remote diagnostics and software tools, which lowers churn and keeps margins high. It’s a powerful combo of reliable revenue, skilled techs, and sticky contracts.

Don’t Negotiate From the Breakroom

If a buyer reaches out, resist the urge to start talking numbers on the spot. Russell’s advice: keep it short, polite, and direct them to email you a profile and letter of interest. 

This buys you time, keeps the conversation on record, and avoids saying something off-the-cuff that can come back to bite you.

It also helps protect the most valuable asset in the deal: your team. Loose talk near the service desk about a possible sale can spark rumors, kill morale, and even drive people out the door, which is the exact opposite of what buyers want.

Why Now Is the Time to Prepare

Industry consolidation is moving fast. Private equity is flush with capital. Banks are lending. Big integrators can’t staff fast enough. So they’re looking to acquire rather than build from scratch.

That gives sellers the upper hand, for now. But capital cycles shift, and so do valuations. Russell points out that a well-prepared business can make the most of today’s high demand while it lasts.

Some owners are also looking at the tech side: rising costs for AI, cloud-based monitoring, and advanced analytics. Rather than shoulder those upgrades alone, they see a sale as a way to modernize through partnership while pocketing the rewards of what they’ve built.

The Risks of DIY Negotiations

Owners who try to manage early buyer conversations solo often get buried in requests: documents, site tours, follow-ups. It’s a time suck. Worse, quoting inflated multiples based on rumors can scare off real buyers or set expectations you can’t meet.

Handing over sensitive data too soon (like without a solid nondisclosure in place) is another common mistake. Customer lists, receiver IPs, and payroll details should never be shared casually. 

Even if an owner manages all that, they’re usually facing off with buyers who negotiate deals for a living. One wrong move in the fine print, such as indemnities, reps, warranties, and you’re on the hook long after closing.

What to Do a Year Before Selling

Russell outlines a practical punch list for owners looking to exit within the next 12 months:

• Clean up the books: Remove personal expenses, reconcile service contracts, and make sure monthly financials tie out to tax returns.
• Document processes: Show buyers a system, not a one-person show.
• Review agreements: Fix contract language, renew licenses, and pull key documentation like permits and UL listings.
• Limit the inner circle: Bring in just one or two trusted team members under NDA to prep quietly and accurately.

These steps reduce legal friction and tell buyers your shop runs on discipline, not memory.

Even 3-5 Years Out, It Pays to Start Now

Thinking of selling in a few years? You’ve got options. Russell says early involvement helps position your company to command a stronger valuation when the time is right.

That could mean tightening up margins, switching contracts to multi-year terms, building a second-tier management team, or restructuring leases and benefits to improve reported EBITDA.

Even small changes like renegotiating monitoring fees or standardizing parts margins can lift your valuation dramatically.

Selling to Your Crew? That’s Possible Too

Not every exit is about selling to a stranger. Russell regularly helps founders pass the torch internally, whether to family members or key employees.

These deals can include seller notes, SBA loans, earnouts, or even partial sales that bring in outside capital while keeping ownership in-house. The key is balancing cash flow so the business stays strong while the owner exits cleanly.

Ready or Not, Have a Plan

There is no “perfect time” to sell. Russell says what really matters is your timeline, not the market’s. Want more free weekends? Fewer emergency calls? Start preparing.

That means documenting inbound buyer interest, locking down confidentiality, cleaning up financials, and having a trusted advisor on deck.

Preparation doesn’t force a sale. It gives you control. And in a market where capital is still flowing, that control can make all the difference when the right offer lands on your desk.