The private security services industry provides manned guarding, patrol services, alarm monitoring, executive protection, and event security to commercial, residential, government, and institutional clients. The sector is highly fragmented with thousands of local and regional operators competing alongside national players such as Allied Universal and Securitas, creating substantial consolidation opportunity in the lower middle market. Recurring contract-based revenue, essential service positioning, and growing demand for integrated physical and technology security solutions make well-run operators attractive acquisition targets.
Who buys these: Private equity firms targeting fragmented service industries, strategic acquirers such as regional or national security companies seeking geographic expansion, entrepreneurial search fund operators, and experienced operators with backgrounds in law enforcement, military, or facilities management
3.5–6×
Typical EBITDA multiple
$1M–$5M
Revenue range
Growing
Market trend
SBA Eligible
7(a) financing available
Recession Resistant
Essential service
Minimum $1M EBITDA preferred, established recurring contract base with 12–36 month agreements, licensed operations in target geography, clean compliance record with no major OSHA or licensing violations, documented workforce management systems, and owner willing to provide transition support for 6–12 months
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Key items to investigate when evaluating a Security Services acquisition
Seller Intelligence
Who sells Security Services businesses?
Founders and owner-operators aged 55–70 approaching retirement who built regional security firms, former law enforcement or military veterans exiting the industry, second-generation family business owners lacking succession candidates, and operators seeking liquidity after growing a contract base over 10–20 years
Typical exit timeline: 12–18 months
Security Services businesses in the $1M–$5M revenue range typically sell for 3.5–6× EBITDA. Minimum $1M EBITDA preferred, established recurring contract base with 12–36 month agreements, licensed operations in target geography, clean compliance record with no major OSHA or licensing violations, documented workforce management systems, and owner willing to provide transition support for 6–12 months
Security Services businesses typically trade at 3.5–6× EBITDA in the lower middle market. The market is highly fragmented with growing demand, which supports premium multiples.
Security Services businesses are SBA 7(a) eligible, making them accessible to first-time buyers. Full acquisition with seller note (10–20%) and 6–12 month transition consulting agreement
Key due diligence areas include: Contract quality, length, renewal rates, and customer concentration risk; State and local licensing compliance for guards, armed personnel, and the company entity itself; Employee turnover rates, wage structures, and overtime liability exposure; Insurance coverage adequacy including general liability, workers' comp, and professional liability; Technology assets including monitoring systems, dispatch software, and client reporting platforms.
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