Security and alarm businesses in Valencia: buying, selling and valuation

By province, the INE publishes the establishments in security and investigation activities, not the number of companies. That figure includes guarding, security systems and private investigation, and does not capture installers classified under other activities.

The starting point is the recurring income it generates, and then its stability is analysed: annual cancellations, customer tenure, average price and the cost of maintaining the service. A portfolio with few cancellations and up-to-date equipment is valued more highly than one with high churn.

It is a possible transaction, but it requires the contracts to allow assignment and the buyer to hold its own authorisations to provide the service. It is worth confirming this with a legal adviser before considering it.

Customer contracts and their expiry dates, the list of security guards with their licences, the applicable collective agreement (convenio colectivo), any employment claims and the company's authorisations. The margin on each contract also matters, because it is usually tight.

Security groups adding subscribers or guarding contracts in the area, building maintenance companies expanding their services, and investors attracted by recurring income, provided they can meet the regulatory requirements.

At first, only aggregated data: number of subscribers, income, cancellations and type of customer. Addresses, installed systems or codes must never leave the company during the negotiation. If the buyer needs to verify the portfolio, this is done with samples that contain no identifying data or through an independent reviewer bound by confidentiality.