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Trade and home services

Fire protection and life safety contractors

Wild Rose Advisors advises the owners of sprinkler, alarm, extinguisher and suppression contractors, whose inspection work is contracted and required by code.

What a buyer pays for

In this trade, value is driven by the share of the work that recurs without being sold again, more than by revenue.

  1. 01

    Inspection Base

    Contracted, scheduled and documented inspection work is typically the most valuable asset these firms hold, and the one most often undervalued, because it is rarely separated on the income statement.

  2. 02

    Licensed Technicians

    Which trades the firm is licensed for, and whether the individuals licensed to perform them remain after closing.

  3. 03

    Customer Concentration

    Where a few accounts represent much of revenue, a buyer prices that risk. A seller who knows the figure before it is requested typically holds a stronger position.

The buyers

National platforms have acquired in this trade for several years, and an acquired firm often keeps its name. Some competitors that appear independent are not, and they are among the likeliest strategic buyers for a firm in the same market.

An owner who has received an approach may bring the offer to Wild Rose Advisors before signing anything. A letter of intent usually carries an exclusivity clause, and once it is signed the seller's leverage is largely gone.

All Sectors

The Practice Serves

  • Independently owned contractors, not branches of a national platform
  • Firms with a recurring inspection base in one or more trades
  • Owners seeking a direct view of value, whether or not a transaction follows

Wild Rose Advisors welcomes conversations with the owners of founder-owned companies.

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