: Check for pending litigation regarding use of force or wage disputes. 4. Valuation
Buying a security guard company is a strategic move to enter a recession-resistant industry with recurring revenue. Unlike starting from scratch, acquisition gives you an immediate workforce, existing contracts, and established licensing. Why Buy Instead of Start?
: Ensure they have active General Liability and Workers' Comp.
: Skip the long sales cycle and gain immediate cash flow.
High employee turnover (over 100% is common, but 200%+ is a warning). Expired guard cards or missing state certifications. Under-the-table payments to staff.
: Labor is your biggest cost; ensure the "bill rate" covers guards, insurance, and overhead.
: Acquiring a company often simplifies the complex state regulatory hurdles.
Buying a security firm is ultimately a "people business." Success depends on your ability to manage a remote workforce and maintain high service standards to prevent contract churn.