Fire Business Values: Why They Sell, What They’re Worth, and When the Heat is Highest

In the world of SME business sales, fire protection companies sit in a unique pocket — recurring service revenue, regulated demand, and long-term compliance needs. That’s a strong foundation for buyer interest. But what does a best-case sale actually look like? And how do most of these businesses really perform on the open market?

Let’s break it down.

🔍 A Case Study in Strategic Premium: Force Fire

When Anacacia Capital sold Force Fire to Southern Cross Electrical Engineering for $53.5 million in March 2025, it wasn’t your average transaction. The sale price implied an EBITDA multiple of 6.15x, based on a forecast of $8.7 million EBITDA for FY25. That’s elite territory — and worth unpacking.

Why so high?

Strategic Buyer Fit: Southern Cross gains cross-sell potential and service adjacency.

Recurring Revenue: Force Fire’s 700+ customers over 1000 sites with multi-year contracts means predictability.

Growth Track Record: EBITDA CAGR of ~50% over three years.

Succession Box Ticked: Founders exiting, systems in place, team intact.

📈 Translation: This was a unicorn-style fire business sale — at the top 1% end of the curve. For most fire services businesses, the picture is strong but more grounded.

🔥 The Real-World Range: What Most Fire Businesses Sell For

In Australia, fire protection companies typically attract 2.75x to 4x EBITDA multiples. Here’s how it breaks down:

Multiple Band % of Deals Drivers

2.75x–3.5x ~68% (the norm) Solid service base, average systems, local-only presence

3.5x–4.5x ~20% (above average) National reach, strong compliance contracts, management in place

5x–6x+ <1% (outlier range) Strategic sale, scale, tech enablement, sustained high growth

⚠️ Reality Check: Most owner-led fire companies with ~$1–5m EBITDA will trade in the 3x to 4x zone — unless they show recurring income, scale, and transferable systems.

🧯Why Buyers Love the Sector (But Discount Heavily Without These Traits)

Regulation = Stickiness: Building owners and property managers must stay compliant. This creates embedded demand.

Service Revenue > Project Revenue: Buyers will pay more for routine testing, maintenance, and monitoring over low-margin install jobs.

Contracted Income = Premiums: Locking in multiyear servicing contracts with major clients supports stronger multiples.

Compliance = Barriers to Entry: Licensing, accreditation, and qualified staff make the sector harder for cowboys to enter.

However...

Fragmentation and price wars in install-heavy players erode margins.

Key-person risk in founder-led firms is a red flag for acquirers.

Low stock turns and long breakeven periods (especially in equipment-heavy firms) hurt ROI and limit price.

💰 A Quick “Breakeven Horizon” Valuation Cross-Check for fire business values

Let’s say a fire services business has:

EBITDA: $1.2m

Sale price (3.5x EBITDA): $4.2m

Stock on hand: $600k

👉 Total capital outlay = $4.8m

👉 Years to breakeven = $4.8m ÷ $1.2m = 4.0 years

That’s a fair range for a services-led, systems-driven firm. If the breakeven stretches beyond 5+ years, buyers will either discount price or demand earnouts and risk-based structuring.

📦 Final Takeaways

Service revenue is king. Buyers consistently pay premiums for contracted, recurring fire safety testing and compliance work.

Project-heavy firms face heavier scrutiny. Lower margins, lumpiness, and execution risk drive down valuation.

Strategic sales exist — but don’t plan on them. The Force Fire deal is the tip of the bell curve. Most businesses sit comfortably in the middle — and that’s where your exit should plan to land.

If you’re running a fire business and thinking about succession, start with this: can your business run without you?

Because the moment it can — and the moment your contracts run 3+ years with sticky clients — the heat starts working in your favour.