Fire alarm and fire protection companies are attractive to buyers because much of their work is driven by code-required inspections and monitoring. But licensing in Florida is split between different agencies, and contracts need careful review. Here's what to know.
Licensing in Florida
- Fire alarm and security alarm contractors are licensed by the Electrical Contractors' Licensing Board (ECLB) under DBPR, which has alarm system contractor categories.
- Fire sprinkler contractors are licensed by the Division of State Fire Marshal, with several classes depending on scope.
- Fire extinguisher and pre-engineered systems businesses are also licensed and permitted through the State Fire Marshal.
- Technicians may hold individual certifications and permits.
Like other contractor licenses, these are tied to qualifying individuals, so the sale needs a qualifier plan. See license transfer when selling.
What drives value
- Recurring revenue: inspection, testing and maintenance contracts and alarm monitoring.
- Contract quality: terms, auto-renewal, assignability and pricing.
- Customer mix: condos, commercial buildings, schools, medical and industrial.
- Deficiency repair work: repairs found during inspections feed service revenue.
- Technician team: certified, experienced and likely to stay.
Monitoring contracts
If you provide monitoring, buyers will want to know whether you own a central station or use a third-party one, how accounts are billed, and whether contracts can be assigned. Recurring monthly revenue is typically a big piece of value.
Diligence buyers will do
- Inspection schedule and whether inspections are current.
- Report submission practices to local authorities having jurisdiction.
- Open deficiencies and liability exposure.
- Insurance and claims history.
South Florida demand
South Florida's large stock of condo towers and commercial buildings, plus increased attention to building safety, keeps demand strong for inspection and repair. See our fire and security page.
This guide is general information, not legal, tax or financial advice. Consult your own attorney and CPA.