Selling your fire protection business.
Fire protection is one of the most active trades for consolidation. Code-mandated inspection, testing and monitoring create recurring revenue that buyers value highly.
Typical valuation multiples.
Where a business falls depends on recurring revenue, margins and how much it relies on the owner.
What moves the multiple.
NFPA 25/72/10 inspection revenue above 50% can lift the multiple by 1.0x–2.5x.
Alarm, sprinkler and suppression under one roof.
Licences in more than one state or jurisdiction widen the buyer pool.
Recurring monthly monitoring revenue is treated as a premium asset.
If the owner holds the only state qualifier licence, expect a 1.0x–2.0x discount.
Lapsed NICET certifications or open AHJ citations can cut value or stop a deal.
A top customer above about 20% of revenue is discounted.
What fire protection owners should know before a sale.
Qualifier licences, NICET levels and technician certifications are core diligence items.
Clean, organised inspection and deficiency records demonstrate compliance and recurring demand.
Buyers value businesses that convert inspection findings into repair work.
Several large, well-funded platforms are consolidating the sector, which supports competitive processes.
Questions fire protection owners ask
What is my fire protection business worth?
Most owner-led fire protection companies we see are valued at roughly 3x–4x EBITDA below $1 million of EBITDA, 4x–7x between $1 million and $5 million, and 6x–9x above $5 million. Recurring NFPA inspection, testing and monitoring revenue is the biggest driver of value. An owner who holds the only qualifier licence, or lapsed certifications, are the most common reasons for a discount.
Who buys fire protection companies?
Several large, well-funded platforms are consolidating fire protection, alongside private equity firms, independent sponsors and regional strategic buyers.
How long does it take to sell a fire protection business?
A full sale process typically takes six to nine months from engagement to closing, depending on how prepared the business is, the level of buyer interest and how quickly diligence moves. Organised inspection and deficiency records demonstrate recurring demand and speed up diligence.