Market Niche

• Pick a part of the alarm market in which you are interested. The alarm industry includes self-installed alarm systems, residential and/orcommercial, monitored alarms, fire alarms, burglar alarms, video surveillance and more. Look for opportunities in your chosen niche. Contact company owners and inquire about willingness to sell. Check security industry publications for classified listings for companies for sale in your niche. Work with a business broker.
  
  

Licensing

• For security alarm installers, most states require the employees to have licenses which include full background checks. The owner of the company may also be required to be licensed, such as security company managers are required to do in California.
  
  

Negotiating Price

• Your offer price should take into account the company's position in the market. Review the projects it has in development to compete with other alarm companies in the area. If others are developing new products, such as wireless security systems and motion detectors that can tell the difference between household members and strangers, it could make your current products and services obsolete. Stay up-to-date by following industry news through industry-related associations and publications such as the Electronic Security Association or "SDM Magazine."
  
  

Due Diligence

• Your legal and financial team must examine the financial documents, contracts, trademark and patent documents the alarm company holds. Make sure they are not so far in debt that it negatively impacts profits. Verify ownership of trademarks for products in development that could be profitable for you.