Commercial Security System Installation and Monitoring Company
This article provides a strategic acquisition blueprint for a commercial security system installation and monitoring business specializing in access control systems, CCTV installation, intrusion detection, remote surveillance integration, and fire panel monitoring. The company serves commercial office buildings, warehouses, multi-unit residential complexes, schools, government buildings, and medical facilities. A key differentiator is the company’s in-house UL-certified central monitoring station and ability to bundle installation with long-term monitoring and maintenance agreements.
With $5.95 million in annual revenue and $1.28 million in adjusted EBITDA, the company maintains over 900 active accounts and provides installation and ongoing system servicing throughout its tri-county region. Roughly 63% of its revenue is recurring from multi-year monitoring and maintenance contracts, while 37% comes from new installations, system upgrades, and emergency response integrations.
This business is ideal for SBA 7(a) acquisition due to its durable, contract-based cash flow, proprietary infrastructure, and compliance with federal and state security regulations. A new buyer can scale by acquiring smaller installers without backend monitoring capabilities, upselling analytics features, and expanding into multi-state compliance verticals such as cannabis facilities, schools, and logistics.
Proposed SBA 7(a) Deal Structure
The deal can be structured using conventional SBA 7(a) terms with modest buyer equity and subordinated seller financing:
Purchase Price: $5.12 million (4.0x EBITDA)
SBA Loan: $3.84 million (75%)
Buyer Equity Injection: $512,000 (10%)
Seller Financing (Subordinated): $768,000 (15%) amortized over 6 years with 12-month interest-only period
Protective provisions:
25% clawback clause on seller note if recurring monitoring contracts decline more than 10% in first 180 days
$60K performance bonus if buyer grows MRR by $50K within 12 months
Seller to remain available for strategic handoff, compliance briefings, and monitoring continuity for 9 months
Customer Segmentation and Revenue Composition
Customer types:
Office parks and commercial buildings: 24%
Industrial warehouses and logistics hubs: 21%
Multi-family residential complexes: 18%
Government and educational institutions: 14%
Healthcare facilities: 11%
Retail and cannabis dispensaries: 7%
Specialty clients (data centers, banks): 5%
Revenue streams:
Monthly monitoring (access + alarm + video): $2.8M
Equipment installation and configuration: $1.9M
Emergency repair and system troubleshooting: $600K
Compliance reports and system re-certification: $400K
Video analytics and remote access dashboards: $250K
Contracts are typically 3 to 5 years with monthly billing and auto-renewal clauses. Monitoring services include 24/7 central station alerts, redundant failover systems, and client portal access. Equipment sales often include installation, training, and 12-month warranties.
Top 75 clients represent 61% of revenue. No single customer represents more than 6.5%.
Technician Workforce and Monitoring Infrastructure
Personnel:
6 certified installation techs (with low-voltage and manufacturer-specific training)
2 fire/life safety systems specialists
3 central monitoring station operators (UL-certified)
2 compliance managers (alarm permits, data handling, video analytics)
1 project estimator
1 GM (non-owner)
Technicians are dispatched based on territory and specialty. Install jobs are tracked through proprietary software, with mobile integration for onsite reporting and ticket closing.
Monitoring station includes:
Dual internet failover and backup power
UL certification for intrusion and fire alarm monitoring
6-screen visual feed grid, alert response protocol, and encrypted data logs
Post-close labor plan:
Introduce stay bonuses for techs and monitoring staff
Fund NICET and factory certification renewals
Hire an account manager to oversee renewals and upsells
Facility, Vehicles, and Capital Equipment
Facility:
7,800 sq ft secured premises with:
Monitoring room (central station)
Training classroom and simulation bays
Equipment inventory and assembly prep
Dispatch area and conference room
Lease: $6,000/month, 4 years remaining with 5-year extension option
Fleet:
5 branded vans (2019–2023), outfitted with ladders, tools, and cable kits
FMV: ~$225,000
CapEx plan:
Replace one aging van: $38K
Add thermal camera testing station: $14K
Upgrade CRM with AI ticket routing: $11K
Sales, Marketing, and Growth Strategy
Sales channels:
Referrals from contractors, IT integrators, and general managers
Bids for school and government contracts
SEO and paid ads for “business security systems + [city]”
Attendance at industry expos and local construction showcases
Marketing budget: ~$65,000 annually
Expansion tactics:
Acquire solo installers with existing clientele but no monitoring
Launch video analytics upsells (facial recognition, license plate detection)
Pursue compliance-driven verticals (HIPAA, CCPA, cannabis)
Bundle new install + maintenance + 36-month monitoring for upfront discounts
Expand service radius by hiring a satellite install crew 60 miles out
Financial Summary
Revenue: $5.95M
COGS (equipment, labor, licensing): $2.88M
Gross Profit: $3.07M
SG&A: $1.79M
Adjusted EBITDA: $1.28M (21.5%)
Gross margins:
Monthly monitoring: 65–70%
Installations: 50–55%
Emergency services: 70%+
Compliance reports: 80%+
Most clients pay monthly via ACH or credit card. Government clients use POs and pay net-30. All install projects include milestone billing or deposits. Monitoring is billed monthly in advance.
Legal, Licensing, and Insurance
Licensed low-voltage contractor in three states
UL-certified monitoring station
Alarm permits registered across 140+ jurisdictions
Technicians cleared for work in public schools and secured facilities
Fully insured: $2M GL, $1M workers comp, $1M cyber, $1M umbrella
No open legal issues or regulatory non-compliance. All employee background checks and licenses are up to date. Monthly logs are available for all monitored sites for the last 24 months.
Working Capital and Transition Planning
Payroll float: $110K–$125K
Seller compliance advisory: $35K
CRM upgrade and AI integration: $15K
Equipment CapEx and vehicle turnover: $50K
Client retention incentives and marketing: $20K
Ideal Buyer Profiles
MSPs (Managed Service Providers) seeking entry into physical security
Telecom or IT integrators seeking recurring monitoring revenue
SBA buyers with security, low-voltage, or compliance experience
PE-backed facility services roll-ups adding electronic security lines
Post-Close Execution Plan
Confirm top 100 monitored clients with signed continuity letters
Recruit field apprentice to expand capacity for new install jobs
Audit monitoring dashboard and deploy video analytics add-ons
Identify 2–3 small alarm companies or solo installers for tuck-in
Launch bundled service contracts targeting industrial warehouse growth
Conclusion
This commercial security system firm delivers recurring cash flow, compliance-driven service demand, and proprietary infrastructure through its in-house monitoring station. With trained technicians, multi-year contracts, and high-margin monitoring services, it is a strong candidate for SBA 7(a) financing. Post-acquisition growth lies in technician recruitment, expansion into regulated verticals, cross-selling analytics and access control, and acquiring non-monitoring installers to roll under a unified backend. It's a scalable, route-based service business with limited churn and defendable barriers to entry, ideal for buyers seeking operational consistency and cash flow visibility.
