Fire Protection Business Valuation
Fire Protection & Sprinkler Business Valuation Calculator & Exit Planning Built for Fire Safety Company Owners
We built one platform that tracks your fire protection company's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Fire Protection Company Owners Have No Idea What Their Business is Actually Worth
Current Fire Protection / Sprinkler Valuation Multiples (2026)
Fire protection valuations depend on service mix and recurring revenue. Here's the market:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Fire Protection Value
Your technical expertise matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Recurring Revenue
60%+ Inspection/Service
Inspection and testing revenue recurs annually—fire codes require it. This recurring revenue is highly valued by acquirers. Companies with 60%+ recurring revenue command premium multiples compared to project-heavy businesses. Track your recurring versus project mix carefully.
Project-heavy = lower multiples
Service Diversification
Full Life Safety: Sprinkler, Alarm, Suppression
Full-service fire protection companies offering sprinkler, fire alarm, special hazard suppression, and extinguisher services capture more revenue per customer. Limited services mean referring work elsewhere. Broader capability demonstrates market position.
Single service = limited capture
Customer Contracts
Multi-Year Inspection Agreements
Multi-year inspection contracts provide predictable revenue that spot-service doesn't. Contracts with auto-renewal provisions are particularly valuable. Track your contract coverage and terms. Converting spot customers to contracts increases value.
No contracts = uncertain revenue
Customer Mix
Commercial, Industrial, Institutional
Commercial, industrial, and institutional buildings require fire protection services. Understanding your customer mix—office, retail, industrial, healthcare, education—helps assess market position. Diversified customer types reduce concentration risk.
Concentrated = dependency risk
Licensing & Certifications
All Required Licenses, NICET Staff
Fire protection requires proper contractor licensing and certified technicians. NICET certifications for sprinkler and alarm work signal technical competence. Maintaining proper licensing and certifications is non-negotiable for acquirers.
Missing licenses = deal problem
Technician Team
Trained, Certified Techs
Skilled fire protection technicians are your service capacity. NICET-certified technicians with proper training are valuable and hard to replace. Team retention matters significantly—turnover affects both service capacity and customer relationships.
Technician turnover = capability risk
How to Value a Fire Protection Business
The U.S. fire protection industry includes thousands of companies providing sprinkler system design, installation, inspection, and maintenance services. These businesses generate approximately $25 billion in annual revenue and benefit from mandatory compliance requirements.
Seller's Discretionary Earnings (SDE) is the primary valuation method. Fire protection businesses typically sell for 2.5x to 4.5x SDE — among the higher multiples in the trades, reflecting the industry's recurring inspection revenue and regulatory-driven demand.
Revenue multiples generally range from 0.40x to 0.70x annual revenue. Companies with large inspection and maintenance contract portfolios command the upper end.
The unique valuation factor for fire protection is the inspection contract base and licensing. Fire sprinkler systems, fire alarms, and suppression systems require regular inspection and testing mandated by local fire codes and insurance requirements. This creates recurring, non-discretionary revenue that buyers value at a premium. Licensed fire protection contractors are required in most jurisdictions, and the licensing process creates barriers to entry. Companies that provide both installation (new construction and retrofit) and ongoing inspection/maintenance capture the full lifecycle revenue from each system installed.
Fire protection has attracted PE interest as part of the broader life safety and building services roll-up trend. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do fire protection companies sell for?
Fire protection companies typically sell for 3.0x – 6.0x SDE or 5x – 10x EBITDA. Companies with high recurring inspection revenue, full services, and strong contracts command premium multiples.
How does recurring revenue affect fire protection value?
Dramatically. Annual inspection revenue is highly valued. Companies with 60%+ recurring revenue command significant premiums over project-heavy businesses.
Who buys fire protection companies?
National fire protection companies, PE-backed life safety platforms, regional fire protection consolidators, and mechanical contractors adding fire protection capability.
Does service diversification affect value?
Yes. Full-service companies (sprinkler, alarm, suppression, extinguisher) capture more revenue per customer. Broader capability commands better valuations.
How important are inspection contracts?
Very important. Multi-year contracts with auto-renewal provide predictable revenue. Convert spot inspection customers to contracts to increase value.
What's the fastest way to increase my fire protection value?
Three high-impact moves: 1) Grow recurring inspection revenue and convert customers to contracts, 2) Add complementary services (alarm, suppression), 3) Ensure all technicians have proper NICET certifications.