Sale of fire protection companies

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The German fire protection sector is in a phase of accelerated change. New legal requirements, increasing technical complexity, an acute shortage of skilled workers and a profound generational change pose strategic decisions for many medium-sized companies. At the same time, a historic opportunity is emerging: The market is more attractive than ever before for investors and industrial buyers who are specifically looking for specialized technical service providers.

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While technical building equipment (MEP) is in focus overall through digitization and climate neutrality, fire protection is now also attracting interest as an independent segment. The market for technical (active) fire protection in Germany amounts to around €5 billion and is growing sustainably at around 4% per year. Stricter building regulations, stricter VdS guidelines and higher safety requirements mean that more and more buildings and systems have to be retrofitted or redesigned. This regulatory pressure creates a stable market that functions largely independently of economic fluctuations. At the same time, access is strictly regulated: Without certain certifications - such as VdS approvals - companies are not even allowed to participate in many projects. For buyers, this means that the easiest way to enter this growing market is by acquiring established fire protection companies. The current investor boom is benefiting not only contractors in the construction and maintenance of fire protection systems, but also engineering firms specializing in fire protection, which plan fire protection concepts, verify them with simulation and act as an interface to building owners, authorities and test engineers.

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In this article, we highlight the most important trends, explain the reasons for the strong buyer interest and use a real transaction - the sale of Weiser GmbH Brandschutz & Technik - to show what a successful company sale looks like in practice.

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Market environment: Why fire protection companies are currently in particular demand

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Regulatory dynamics as a growth engine and central issue in fire protection

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Hardly any other technical sector is growing as predictably and reliably as fire protection. The reason for this is constantly increasing requirements for structural, technical and organizational fire protection. Modernized state building regulations, stricter insurance guidelines (VdS) and more frequent inspection requirements mean that existing buildings must be regularly adapted to current requirements. For example, fire protection concepts must be updated during renovations, old systems must be modernized or additional safety devices installed. This permanent regulatory pressure creates a reliable background noise of orders that is largely independent of the economic cycle. Even in phases of weaker construction, fire protection remains in demand, as owners must comply with legal requirements - an important distinguishing feature from other trades. A recent industry survey confirms that the majority of fire protection companies expect a stable to slightly better order situation in 2025. In short, demand is not collapsing, but is only redistributing - the market is constantly growing, driven by security and legislation.

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Fire protection engineers as pacesetters in planning and approval

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A significant part of the added value in fire protection is created not only on the construction site, but at the planning table. Fire protection engineers and specialized engineering firms develop holistic fire protection concepts, coordinate them with architects, MEP planners and structural engineers, and support the approval process with authorities and test engineers. Especially in the case of complex projects - such as special buildings, industrial plants or existing renovations - the quality of planning determines whether a project is eligible for approval at all and can be implemented economically.

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In practice, this means that engineering firms are responsible for the correct design of escape routes, smoke sections and protection goals, they create fire protection certificates and are increasingly using digital tools such as 3D modelling or smoke and evacuation simulations. Such planning houses are particularly attractive for investors. They are integrated early in the project cycle, shape the industry's technical standards and are often considered the preferred partner for recurring orders.

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At the same time, the state building regulations, special building regulations and guidelines are also increasing the qualification pressure here: Larger projects are hard to win without verifiable specialist planning expertise, recognized experts and reliable references. For well-established fire protection engineering firms, this means a strong market position - and a clear value driver from an M&A perspective.

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Recurring sales as a basis

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A key advantage of the fire protection sector lies in the structure of its revenue. Maintenance, inspections, tests and regular repairs generate continuous income, often over many years. For example, fire extinguishing and sprinkler systems must be regularly maintained, fire extinguishers must be tested at fixed intervals and fire alarm systems must be inspected annually. Many fire protection companies have therefore tied a large part of their business into service contracts. These recurring business models offer a high level of planning security and act as a stable foundation - even new plants usually result in long-term follow-up business in the form of maintenance. Investors highly appreciate this ability to plan: Recurring inspection and maintenance orders are considered a particular advantage in M&A processes. A diversified customer base without individual major customers, who contribute more than, for example, 20% of sales is just as important. The combination of regular cash flow and reduced cluster risks makes fire protection companies robust - and therefore extremely attractive for buyers who want to combine stability and growth potential.

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There is a similar pattern for fire protection engineers, albeit with different types of services: Recurring inventories, periodic updating of fire protection concepts during renovations, expert opinions or accompanying advice to existing customers also generate recurring fees. From a buyer's point of view, engineering firms that are permanently involved in project pipelines of project developers, housing associations or industrial customers have comparable stability to service-oriented installers.

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Technological development accelerates consolidation

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Digital documentation systems, networked fire alarm and extinguishing systems, and software-based maintenance processes are changing the market in the long term. Topics such as Building Information Modeling (BIM) and smart building technologies also reach fire protection. However, many small and medium-sized companies find it difficult to make the necessary investment alone. At the same time, builders and operators are increasingly demanding integrated solutions - from planning and installation to long-term service from a single source. This combination accelerates consolidation: Larger groups of companies or platforms can meet the new requirements more easily and are actively looking for specialized additions to round off their portfolio.

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In addition, operational hurdles such as the shortage of skilled workers and the flood of documentation place a particular burden on small companies. In industry surveys, fire protection companies cite growing regulatory complexity and a lack of skilled workers as the biggest challenges of the coming years. Many players are reaching limits, projects are delayed or rejected due to a lack of personnel or know-how. This is where strategic buyers come in: Through mergers, they can utilize economies of scale - such as joint IT systems and central resources for personnel and training - and thus better overcome these bottlenecks. In short, increasing technical complexity acts as a catalyst: it drives smaller providers into strong networks. Anyone who recognizes the signs of the times concludes strategic partnerships. Investors, on the other hand, have the opportunity to upgrade technologically through acquisitions and at the same time gain market share.

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Why now is an ideal time to sell

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A growing wave of consolidation

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Strategic buyers from the building technology sector, international industrial groups and private equity investors are currently driving a dynamic wave of consolidation in fire protection. After decades of fragmentation, a first serious takeover movement is forming - similar to what has already been observed in the engineering and MEP sector. The framework conditions could hardly be better: The market is considered recession-proof, and numerous players with capital are ready to secure some of this growth.

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A look at the market structure shows the enormous potential: There are over 4,500 fire protection companies in Germany, but less than 60 of them even belong to traditional SMEs. The industry is therefore extremely fragmented, characterized by micro-enterprises and regional suppliers. This structure provides ideal conditions for buy-and-build strategies in which investors combine several smaller companies into a larger unit. Some market players have already recognized this - such as the Normec Group, which took over the well-known fire protection planner hhpberlin in 2023, or large construction companies such as GOLDBECK, which bought Weiser GmbH in 2024. Such transactions show that a wave of consolidation has set in motion, which is likely to gain momentum over the next few years. For sales-ready entrepreneurs, this means that an increasing supply of companies meets high buyer demand - an environment in which excellent prices can be achieved with professional preparation.

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The value of experienced and certified SMEs is increasing

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Certifications such as VdS, DIN 14675 (for fire alarm systems) or ISO 9001 are not just proof of quality in the fire protection sector, but real value drivers. They ensure that a company is allowed to take on and officially accept demanding projects - projects that only a few competitors can service. Buyer interest in companies that meet these requirements is correspondingly strong. In Germany, for example, it is mandatory to have a VdS certification in order to participate in certain construction projects and public tenders in fire protection. These approvals cost time and money and also require suitably certified personnel. As a result, they offer established certificate holders protection against new competition and enable attractive margins - an average of over 11% EBITDA in the technical fire protection sector.

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It's no wonder that companies with rare certifications often achieve above-average purchase prices. For example, a company that has VdS approval as an installer of sprinkler systems gives a buyer immediate access to a strictly regulated market segment. Only a few dozen companies across Germany meet these requirements — a real USP in terms of company value. The same applies to ISO-certified quality management systems or special approvals in structural fire protection. Overall, it can be observed that leading technical SMEs with a broad approval base and excellent reputation are currently achieving significantly higher multipliers than the average. In individual deals in recent years, multiples of up to 10x EBITDA have historically been paid - values that used to be rather exceptional. The clear message: Qualified, specialized fire protection companies have never been as valuable as they are today.

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On the planning side, traditional installer certificates are replaced by other quality certificates: publicly appointed and certified experts, recognized test engineers, long-standing listings with public clients or an outstanding list of references in complex special buildings. Such “soft certifications” are just as valuable to buyers as formal approvals because they ensure access to demanding projects that result in high fees and follow-up orders.

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Demographic change as a transaction driver

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Many companies in the sector were founded in the 1980s and 1990s. Today, numerous fire protection owners are faced with the question of succession. The generation of owners is reaching retirement age - according to recent studies, more than half of all medium-sized entrepreneurs in Germany are over 55 years old. By 2028 alone, around 100,000 owners are planning to retire every year. This demographic wave does not stop at fire protection either: In the coming years, more family-external company successions will enter the market than ever before.

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At the same time, buyers are specifically looking for companies with a clear market position and a long history. Trust is particularly important in safety-related areas — and this grows with every successful project reference over decades. Established fire protection companies with experienced staff and established customer relationships are therefore considered particularly attractive destinations. The current constellation - many sales-ready former owners meet strategic and financial buyers with expansion plans — results in exceptionally favourable conditions for shaping the strategic future of their own business. Anyone thinking about succession or sale will now find an ideal market window: high investor demand and thus the opportunity to select the best partner from several potential partners.

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Case study: The successful transaction of Brandschutz Weiser GmbH

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The transaction of Weiser GmbH Brandschutz & Technik, managed by MIND, is an example of how a company can become a highly attractive target in the M&A market through technical excellence and clear positioning - and how a structured sales process leads to optimal results.

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A technical hidden champion

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Weiser GmbH - founded over 35 years ago by Peter Weiser as a one-man business - has developed over the decades into a highly specialized provider of active fire protection. With around 60 employees at the time of sale and locations in Munich, Augsburg and Penzberg, Weiser serves a broad customer base in southern Germany. By consistently expanding its range of services, the company is now a full-service provider of fire protection solutions that has an excellent reputation far beyond the region. Individual advice, planning, installation and maintenance - Weiser offers everything from a single source and has thus established itself as a reliable partner for industry, trade and public clients. This combination of deep expertise, a wide range of products and a high level of reliability made Weiser a sought-after conversation partner for potential buyers.

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Certifications as a strategic advantage

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Weiser's technical recognition and certification is particularly noteworthy, in particular the VdS recognition as an installation company for sprinkler systems. Weiser is one of the few medium-sized companies who were allowed to plan, build and maintain sprinkler systems in accordance with the VdS standard. For customers, this meant the highest level of technical expertise and quality assurance in accordance with insurance standards. For potential buyers, it was a clear signal that Weiser was able to service projects that were denied to others. In addition, there were certified quality processes in accordance with ISO 9001 and approval in accordance with DIN 14675 for fire alarm systems, which documents expertise in planning and installing fire alarm and alarm systems. This rare combination of certificates and skills made Weiser one of the most attractive medium-sized providers in the industry - a company that was able to deliver immediate added value to strategic as well as financial buyers.

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The structured M&A process: process and procedure with MIND

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From initial preparation to closing, the Weiser transaction was closely supported by MIND. The focus was initially on the precise positioning of the company: The unique strengths — such as VdS sprinkler recognition, the broad range of services and the strong market position in Bavaria - were clearly identified. At the same time, MIND identified suitable groups of buyers, from international construction companies to specialized investors. The decisive factor in the process was not only finding the best economic partner, but also a buyer who was culturally and strategically suited to the development of the company. Following a structured bidding process, the GOLDBECK Group emerged as an ideal partner. GOLDBECK, one of Germany's leading and family-owned construction companies, was specifically looking for VdS expertise to complement its own range of services. With the takeover by GOLDBECK, Weiser can now enter a highly profitable and growing sector that they had previously only accessed through subcontractors and further expand his position in the sector. Particularly important for the transaction: One owner has deliberately stayed with the company and is now creating a significant growth story together with GOLDBECK. In addition, the future of the company and its workforce is assured, existing customer relationships are continued seamlessly and GOLDBECK as a partner creates additional opportunities, such as supra-regional expansion.

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As a result of Mr. Köppe's comprehensive and direct approach to investors, we immediately entered the negotiations with offers that have already far exceeded my initial expectations. We were able to underline these offers thanks to Mr. Scheufen's strategic and analytical preparation and thus made the transaction a great success.

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Christian Weiser, former managing director of Weiser GmbH Fire Protection & Technology

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Christian Weiser's words make it clear: A professionally orchestrated sales process can achieve significant increases in value. MIND's broad market access brought offers to the table that were above the original price expectations. With well-founded preparation and analysis, these offers were substantiated and ultimately translated into a successful conclusion for all parties. The Weiser success story shows how important other factors are in addition to hard facts (certificates, figures): trust, cultural fit and a shared vision with the buyer. This resulted in a coveted acquisition target from a local fire protection specialist, which is now part of a group of companies and has new opportunities there as a competence center for fire protection.

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Buyer groups in fire protection: Who buys and for what reasons?

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In the current market, companies primarily encounter three groups of buyers, each with different motives and strengths. Strategic buyers, private equity investors and family offices are shaping events - and despite all differences, they are pursuing a common goal: acquiring well-managed, technically strong and certified medium-sized companies in fire protection.

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Strategic buyers

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These are industrial companies or service groups that want to expand their own range of services through acquisitions. In fire protection, this includes, for example, larger building technology and FM companies, plant manufacturers, construction companies or even international fire protection groups. Their main motives: geographical expansion, access to new customers and projects, and the acquisition of qualified personnel. By acquiring a sprinkler specialist, for example, a strategic buyer can immediately have sought-after expertise in their portfolio instead of laboriously building it up themselves. Synergies play an important role - e.g. bundling planning resources, cross-selling fire protection services to existing customers or joint purchasing benefits. Strategists usually work with long-term horizons and are prepared to dig deeper into their pockets for strategically appropriate goals. At the same time, they ensure that the acquired company fits into their own structure. Following the takeover, the company is often integrated into a larger network, where it benefits from a stronger brand, capital and central functions. A strategic buyer can be ideal for owners if continuity and expansion prospects are paramount - employees are often taken on and the business continues at the existing location, while the new parent company ensures investments and growth.

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private equity investors

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Private equity companies (PE) act as financial investors. They collect capital in funds and invest it in promising companies with the aim of achieving a significant increase in value within a medium-term period (typically 3-7 years). In fire protection, PE investors are particularly attracted by the stability of cash flows and the opportunity to build a larger platform through acquisitions. Many PE funds see the fragmented industry as an opportunity for a classic buy-and-build: You take over a sufficiently large core company and then make several add-on acquisitions to gain market share and expand the range of services. PE investors differ from strategists primarily in their focus on exits: They plan to sell on later on right from the start. Accordingly, they are consistently looking for value levers such as efficiency gains, digitization or expansion into new regions/customer segments. For company sellers, a start in PE often offers the opportunity to participate again themselves - for example through reparticipation (roll-over) or performance-based earn-outs, in which part of the purchase price only flows when certain goals have been achieved. In this way, owners can sell a company and still remain involved in its future growth (with investor support). A PE prefers to buy successful, profitable companies with development potential - they tend to avoid restructuring cases. Robust fire protection companies with growth ideas have a good chance of finding a financially strong partner who will contribute capital and know-how and, in conjunction with further acquisitions, form a larger industry player.

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Family Offices

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Family offices are the investment vehicles of wealthy families or entrepreneurs. They usually invest their own assets and combine the characteristics of financial and strategists: on the one hand, entrepreneurial with often long-term horizons, and on the other hand without external return pressure, such as traditional PE funds. In the successor market, family offices are increasingly active, precisely because they have no fixed exit requirement and therefore offer patient capital. Their motivation is often to maintain wealth over generations and to sustainably grow their portfolio. For medium-sized fire protection companies, a family office can be an ideal buyer if long-term and cultural fit are important. The people involved often come from SMEs themselves, i.e. they understand the industry and respect established structures. Family offices have a very flexible deal structure - from minority investments to full takeovers are possible. Transitional models in which the outgoing entrepreneur remains as an advisory board for some time or is gradually taken over are not uncommon. The strength of family offices lies in the individual adjustment to the seller's needs: Without rigid fund requirements, they can, for example, enable the owner to sell a portion first and to reduce it further later. In addition, the company is usually not resold in the short term, but remains in the family portfolio for the long term. For employees, this often means consistency - the company should be developed in the spirit of the founder, not quickly exploited. It should be borne in mind that family offices are very heterogeneous: Some act highly professionally with their own management team, others are more opportunistic. It is therefore important for sellers to thoroughly check the respective family office as a partner. Overall, however, family offices are on the rise - they have built up a lot of capital in the boom years and are now looking for solid medium-sized companies that can support them in the long term. Especially in fire protection, with its stable prospects, there are ideal investment properties here.

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More about this: Who exactly are the buyers in the successor market - and what distinguishes private equity, family offices and strategic buyers from one another? In our detailed insight article “Family offices, private equity & strategists - Who actually buys in the successor market? ” We analyse in detail the profiles, motives and typical deal structures of these buyer groups - with a clear focus on succession in German SMEs.

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How owners can increase company value in a targeted manner with the right preparation and advice

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A successful sale of a company does not occur spontaneously, but through early preparation and professionalization. Studies and experiences in recent years show that the difference between a good and a very good exit rarely lies in the market environment - but almost always in the preparations that the entrepreneur has made beforehand in the background. Companies that have professionalized their structures and addressed the most important value drivers demonstrably achieve significantly higher ratings than unprepared sellers. But what does that mean in practice? The following are the key levers with which owners can actively increase the value of their fire protection operations and reduce risks from an investor's perspective:

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• Clear organization and processes: Buyers prefer businesses that do not depend exclusively on the owner's operational presence. A second level of management or experienced key employees should be available so that know-how and customer contacts are spread over several shoulders. Standardised processes are just as important - ideally documented and certified (e.g. according to ISO 9001). If a company demonstrably “works” without the boss having to personally control every order, the risk for the buyer decreases significantly. This has a value-increasing effect - if there is no regular succession or if all knowledge is in the boss's head, this often leads to significant valuation reductions.

• Transparency in figures and contracts: Orderly accounting and prepared key figures are basic prerequisites for a successful sales process. Adjusted financial data and a clear presentation of sustainable EBITDA create trust. Sales quality and order backlog should also be made transparent: Which revenues are recurring? How is turnover distributed among customer groups? Are there long-term service contracts? Entrepreneurs who provide clarity at an early stage enable buyers to make a realistic evaluation and shorten the due diligence process. A particular advantage is the documentation of the pipeline and supply backlog - if you show that high orders are also expected in the future, this reinforces the buyer's growth theory. Overall, the less uncertainty the documents offer, the lower the risk discount in the evaluation process.

• Recurring revenue and customer loyalty: As described above, maintenance and service revenue is one of the most valuable types of revenue. A high proportion of recurring sales (e.g. audits, maintenance contracts, periodic training) acts as a multiplier on the company value. Owners should therefore make every effort to bind and, if necessary, expand service contracts over the long term before they enter into sales negotiations. A broad customer base with long-standing relationships is also attractive - such as several framework agreements with municipalities or industrial customers. Important: No individual customer should be overwhelming. Maintaining the customer base and maintaining maintenance contracts beyond the time of sale can increase value in a targeted manner.

• Technical excellence and certificates: A fire protection company with rare approvals, patents or special know-how has a strong negotiating position. Owners should therefore ensure that their certifications are maintained and expanded. If a recertification is pending (e.g. VdS recognition), it should definitely be renewed before a sales process - an incomplete certificate status scares buyers off. Conversely, additional certification (for example also in the adjacent area of occupational safety, electrical testing, etc.) increases the number of potential buyers. Also important: reference projects and cases that prove technical competence. If, for example, you have successfully implemented complex special extinguishing systems for critical infrastructures, this should be highlighted in information documents and substantiated with data. Technical strength and quality are at the core of the company's DNA in fire protection - the better they are documented, the more trust and value you create among interested parties.

• Margin and efficiency: After all, profitability itself also plays a role. The typical EBITDA margin in the industry is around 8-12%, depending on the business model. Companies that sustainably achieve margins of over 15% send a signal of efficiency and pricing power. This can be achieved, for example, through particularly good processes, qualified personnel or high service rates. Here, buyers look at key figures such as Turnover per employee or Overhead ratio to estimate scaling potential. Owners can increase their profitability before selling through optimization projects (e.g. introduction of industry software, training to increase productivity, tight cost management). Each additional percentage point of margin can increase the valuation multiple. However, you should be careful not to jeopardize the substance through overly harsh austerity measures - sustainable profits are required One-time effects Due diligence becomes clear as a result of short-term measures.

• Methodological excellence and know-how at engineering offices: For fire protection engineers and planning houses, methodological standards and internal know-how play a role in particular: uniform calculation and documentation standards, proprietary tools or macros, libraries of detailed solutions, internal knowledge databases and a clear training path for junior engineers. Buyers pay for planning units that not only depend on the know-how of individual senior partners, but also have a reproducible “planning factory.” The more this knowledge is institutionalized in the company, the higher is the resilience and the more attractive the engineering office is in the sales process.

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Transaction preparation: In addition to these content levers, process preparation itself is a factor that should not be underestimated. Experts advise starting preparations early (3-5 years) before the planned sale. This includes in-house vendor due diligence - i.e. the critical review of all documents from a buyer's point of view in order to identify and remedy potential weak points at an early stage. Typical steps include: cleaning the balance sheet, timely extension of important customer contracts, settlement of risks (e.g. resolving outstanding legal disputes) and compiling all necessary documents for an orderly audit. The more prepared a company goes into the sales process, the more confident it can be — and the more trust the buyer creates. In many cases, a professionally managed process therefore results in a significantly higher purchase price because risks are priced in when there are ambiguities. It is therefore worthwhile to call in experienced consultants to optimize all aspects - financial, legal, tax. The opportunity to sell your life's work should not be left to chance.