Ref. No - BFS937554

LocationSouth Africa, Western Cape

Ref. No - BFS937554

Sector - Services

Asking Price
R10,950,000
Monthly Profit
R397,825
Asset Value
R 2,408,045
Stock Value
R 0
Yearly Net Profit
R 4,773,901

Summary

Delivering expert electronic security solutions to South Africa’s commercial and industrial sectors. From access control and CCTV to 24/7 off-site monitoring, we offer fully integrated systems designed for high-risk environments and high-value assets. Our experienced team provides end-to-end service — from consultation and installation to long-term maintenance and support. Trusted by leading brands, we secure your business with precision, reliability, and professionalism.

Give me more information

Fully describe the business's activities?

This business specialises in the supply and installation of high-grade electronic security systems, serving the commercial and select upmarket residential sectors. Unlike low-cost, entry-level offerings, the focus is on premium, tailored solutions for clients who prioritise robust protection.

Services include consulting on new developments, industrial site security planning, and large-scale infrastructure rollouts. Their expertise is often brought in early during project planning to ensure security forms part of the foundation.

In addition to installations, the business provides specialised maintenance and technical support, ensuring long-term system performance. Off-site video surveillance and remote monitoring services are also offered, adding 24/7 oversight to high-risk environments.

About 50% of the monthly revenue is generated from repeat business by current customers, highlighting strong client retention and consistent demand. The business also maintains a database of over 5,000 contacts who receive bi-weekly emailers, ensuring regular engagement and top-of-mind awareness in the market.

Roughly 18% of revenue is generated from recurring billings through ongoing service contracts, maintenance agreements, and monitoring subscriptions—providing a stable and predictable income stream. These agreements not only ensure consistent monthly cash flow but also foster long-term client relationships and improve business valuation through annuity-style income.

There is currently a focused drive by the sales team to secure more monthly recurring contracts, as this revenue stream was not prioritised in the past—presenting a clear opportunity for growth.

How does the business operate on a daily basis?

The business runs a well-structured operation with both technical and administrative workflows in place. A key feature is the 24/7 off-site monitoring facility, staffed by two trained controllers per shift on a 12-hour rotation, ensuring uninterrupted surveillance and client support.

Sales leads are generated via a mix of paid campaigns and strong organic search engine rankings. Once a lead is captured, a sales coordinator promptly contacts the potential client to schedule an on-site meeting—typically within 24 hours.

Sales representatives handle site assessments and generate tailored quotations, achieving an average 50% close rate. Upon client acceptance, an account administrator issues an invoice (usually requiring a 70% deposit) and facilitates the signing of the off-site monitoring agreement if applicable.

Once payment is received, the project is scheduled and installation is carried out by trained technicians. Following installation, a specialised IT-led handover ensures all systems are fully operational and integrated. The remaining balance is paid on completion.

This disciplined and responsive sales-to-installation process supports a high standard of client service and system reliability.

What Advertising/Marketing is carried out?

- Significant monthly spend on Google Ads, generating consistent high-quality leads
- Branded sign boards installed across key locations, increasing physical visibility

What competition exists?

The electronic security sector is competitive, with a mix of low-cost installers, mid-tier providers, and a few high-end security specialists
Most competitors focus on volume-driven, standardised installations, often priced for once-off jobs without long-term support

This business differentiates itself through premium-grade solutions, custom design, and end-to-end service — from consulting to installation, support, and 24/7 monitoring

Few competitors offer a fully integrated service model that includes remote monitoring, IT-driven system commissioning, and SLAs

Its established client base, including major national brands, provides a barrier to entry for new or less experienced players
The market is growing, especially in industrial and upmarket residential segments, creating opportunities despite competition

How could the profitability of the business be improved?

- Reducing the owner’s drawings to free up cash flow and improve net profit
- Reviewing and possibly scaling back some lower-margin service contracts to focus on more profitable clients
- Reassessing insurance policies to ensure competitive premiums without compromising coverage
- Tightening expense controls across operations to eliminate unnecessary costs
- Implementing a modest price increase of around 5% on Service Level Agreements (SLAs) to improve recurring revenue margins

Give a breakdown of staff/ functions/ length of service?

- General Manager - Overall management - 14 years service
- Branch Administrator – Handles invoicing, bookings, and administration; 4 years’ service
- Technical Manager – Manages technicians and technical projects; 7 years with the company
- Technicians – 8 skilled staff responsible for installations and maintenance
- Receptionist / Service Coordinator – Frontline client liaison and scheduling
- Control Room Operators – 8 operators managing 24/7 off-site monitoring shifts
- Senior IT Technician – Provides high-level technical support and system commissioning

Do any have management potential?

GM and Branch administrator

How involved is the Owner in running the business?

The owner remains actively involved primarily in sales, while daily operations are efficiently managed by a capable and experienced team. The sales role could be delegated to another salesperson.

When does the current lease end?

Ending 1 January 2026

What are the trading hours?

24/7 Monitoring staff only
07:00 - 17:00 Normal business activities

What are the main assets of the business?

The primary assets in the business include vehicles and advanced security monitoring systems.

Strengths?

- Established reputation with high-profile, repeat clients
- Diverse service offering including consulting, installation, maintenance, and 24/7 monitoring
- Strong recurring revenue stream (18%) providing stable cash flow
- Skilled and experienced management and technical team
- Top Google rankings and strong digital marketing presence

Weaknesses?

- Owner’s active involvement in sales creates some dependency

Opportunities?

- Growing demand for premium security solutions in commercial and upmarket residential sectors
- Potential to increase prices on Service Level Agreements by 5%
- Expansion into new geographic areas or market segments
- Upselling and cross-selling additional security services and technology upgrades

Threats?

- Competition from low-cost security providers offering basic installations
- Regulatory changes impacting operational or monitoring requirements

What is the reason for the sale?

The owner has built a solid, profitable business and is now in a position to pursue a long-planned relocation to the Northern Cape. With the business running efficiently and a strong team in place, this presents a rare and well-timed opportunity for a new owner to step into a thriving operation with minimal disruption.
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Elmo

Elmo Lombard

LocationSouth Africa, Western Cape

Preferred method of contact

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