Before you talk to a security buyer
- A list of every post with hours per week, bill rate and pay rate
- Each client contract with its term, renewal date and cancellation notice
- Officer roster showing license class, armed or unarmed, and time with you
- Overtime as a share of total hours for the last two years
- Workers' comp and liability insurance history, with any open claims
The contract list is the company
Most guard companies earn their money from posts billed by the hour, week after week. A buyer starts by listing every site you staff, how many hours it runs and what you bill against what you pay.
The spread between those two rates, after payroll taxes, insurance and overtime, is your real margin. Owners who can show it post by post get better offers than those who only show a total.
Short notice clauses and how to answer them
Many security contracts let the client cancel on thirty days' notice. Buyers know this, so they look at how long clients actually stay. A client who has renewed for eight years is worth more than the paper suggests.
Put the history next to each contract: start date, renewals and any rate increases. Check whether contracts can be assigned to a new owner without the client's consent. Some can't, and buyers will want to know which.
Concentration in one client or one sector
If a single property manager, hospital or government client makes up a large share of your hours, buyers will discount the price or ask for terms tied to keeping that client. It's one of the most common reasons guard deals get repriced.
A mix of residential communities, construction sites, offices, events and industrial sites around the port and the Westside spreads that risk. If you're heavy in one client, start widening the base before you list.
State licenses and who holds them
In Florida, security agencies and officers are licensed by the Department of Agriculture and Consumer Services. The agency holds a Class B license, officers hold Class D licenses and armed officers also need a Class G.
Officer licenses belong to the people, so they stay with them. The agency license is tied to the owners and the licensed manager, and generally doesn't pass to a buyer on its own. Your attorney should map out the timing before you sign anything.
Turnover, overtime and training records
Guard work has high turnover everywhere. Buyers don't expect zero, but they want to see that you can fill posts reliably and that overtime isn't eating the margin. Show recruiting costs and how fast you replace people.
Keep training and license renewal records current for every officer. A file with lapsed licenses is a red flag in due diligence and can cost you credibility with a buyer quickly.
Insurance and claims
Liability and workers' comp are large costs for a guard company. A clean claims record lowers what a buyer expects to pay and makes the business easier to finance. Have five years of loss runs ready.
For the state unemployment account and rate after a sale, see the reemployment tax guide. Another crew based business we cover is moving companies. To understand the full timeline, read selling a Jacksonville company.
Find out what your contracts could be worth through the free value form or by calling (904) 555-0129.