How to sell a security company
Security firms are valued on recurring monitoring/guarding contracts and low attrition across the contract base.
The value drivers
Recurring monitoring or guarding contracts
Long contract tenure and low churn
Licensed staff and transferable client relationships
What drags the price down
The risks a buyer discounts
- Wage-exposed thin margins
- Client concentration and short contracts
Typical valuation
typically 4–7× EBITDA, higher for recurring monitoring revenue.
Usual buyersecurity consolidators and PE platforms
Indicative only — your defensible range is built from your actual numbers.
How to prepare a security company for sale
Know your number
Get a defensible valuation grounded in your normalised earnings and how buyers actually price businesses like yours.
Close the value gaps
Fix what discounts the price — the risks above — and strengthen the drivers buyers pay a premium for.
Clean the books & data room
Normalise financials and assemble a buyer-ready data room so nothing derails the deal in due diligence.
Run a managed process
Approach several qualified buyers to create competitive tension and protect both price and your leverage.
FAQ
How are security companies valued?
Usually 4–7× EBITDA, driven by recurring monitoring/guarding contracts, tenure and churn. Recurring monitoring (RMR) earns the highest multiples.
What increases a security company's value?
Recurring monitoring revenue, long contract tenure, diversified clients, and licensed staff who transfer with the business.
Selling a security company?
We help owners value, prepare and sell — quietly, and for the best achievable price.