$4.2M Security Business… With $773K Revenue?!

In this episode the hosts critique a $4.28 million asking price for a Signal Security Franchise business in San Antonio earning ~$773K revenue—arguing it’s overpriced, under‑differentiated and risky. Business Listing – https://www.bizbuysell.com/business-opportunity/san-antonio-tx-highly-profitable-security-business-for-sale/2350661/ Welcome to Acquisitions Anonymous – the #1 podcast for small business M&A. Every week, we break down businesses for sale and talk about buying, operating, and growing them. Subscribe for more episodes: https://www.youtube.com/@AcquisitionsAnonymousPodcast?sub_confirmation=1 Subscribe to our Newsletter: https://www.acquanon.com/newsletter Connect with us on Social Media: Twitter: https://twitter.com/acquanon LinkedIn: https://www.linkedin.com/company/acquanon 👋 Follow the Hosts Michael Girdley – Entrepreneur & investor. Twitter: https://twitter.com/girdley Bill D’Alessandro – CEO of Elements Brands. Twitter: https://twitter.com/BillDA Heather Endresen – SBA lending expert & advisor. Twitter: https://twitter.com/EndresenHeather Mills Snell – Small business investor & advisor. Twitter: https://twitter.com/thegeneralmills 💰 Sponsored by: Capital Pad – A platform connecting accredited investors with vetted small business acquisition deals. Discover exclusive opportunities at https://capitalpad.com Acquisition Lab – Your fast-track to business ownership. Get hands-on support, world-class resources, and join a top-tier community of acquisition entrepreneurs. Schedule your free consultation at https://www.acquisitionlab.com and mention Acquisitions Anonymous! In this episode of Acquisitions Anonymous, hosts Michael Girdley, Bill D’Alessandro and Connor Groce dig into a franchise‐for‐sale opportunity in the private security industry: a Signal Security franchise in San Antonio asking $4.28 million with $773K in gross revenue. They walk through the business model (commercial security staffing), margins, branding claims, franchise structure and red flags. Key Highlights: - Asking price: $4.28 million for a franchise security services business in San Antonio, with ~$773 K gross revenue. - Model: Commercial security staffing (e.g., apartment complexes, offices) relying on contract revenue and hourly staff. - Margin concerns: Advertised ~39% gross margin but likely much lower net profit—owners estimate very low take‑home. - Franchise platform issues: Website more focused on selling franchise opportunities than showing service revenue or client success; raises questions about sustainability & support. - Operational risks: Staffing, liability issues, tech disruption (surveillance & automation), brand reputation, risk of employee negligence or incident triggering legal/insurance exposure. - Verdict: Thumbs down across hosts; valuation too aggressive for the business model and risk profile.