Background Check Business Valuation
Background Screening Business Valuation Calculator & Exit Planning Built for Screening Company Owners
We built one platform that tracks your background screening company's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Background Screening Company Owners Have No Idea What Their Business is Actually Worth
Current Background Screening Services Valuation Multiples (2026)
Background screening valuations depend on client base and technology platform. Here's the market:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Background Screening Value
Your accuracy matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Client Retention
90%+ Annual Retention
Background screening clients should be sticky—switching is disruptive. 90%+ client retention indicates service quality and competitive pricing. Track retention carefully; declining retention significantly impacts value.
High churn = service concerns
Screen Volume
Growing Monthly Screens
How many screens do you process monthly and is volume growing? Screen volume indicates market demand and operational capacity. Growing volume from existing and new clients signals healthy business development.
Declining volume = market share loss
Technology Platform
Modern Platform, ATS Integrations
Your technology platform affects scalability and client experience. Modern systems with ATS integrations, automated workflows, and candidate self-service are increasingly expected. Legacy systems may limit competitive positioning.
Dated platform = competitive disadvantage
Service Breadth
Criminal, Employment, Education, Drug, etc.
Full-service screening companies offering criminal checks, employment verification, education verification, drug testing, and specialty screens capture more revenue per client. Limited services mean clients need multiple vendors.
Limited services = partial wallet
Compliance
FCRA Compliant, PBSA Accredited
Background screening operates under strict regulations—FCRA, state laws, ban-the-box requirements. Compliance is non-negotiable. PBSA accreditation demonstrates industry-standard practices. Compliance history matters significantly.
Compliance gaps = deal risk
Client Concentration
Diversified Client Base
Customer concentration creates risk. No single client should dominate revenue. Diversified client bases across industries provide stability. Track concentration and work to diversify.
Concentrated = dependency risk
How to Value a Background Screening Business
The U.S. background screening industry generates approximately $5 billion in annual revenue across thousands of providers. Background screening companies provide criminal background checks, employment verification, drug testing, and compliance screening for employers.
EBITDA or SDE is used depending on company size. Background screening businesses typically sell for 3.0x to 6.0x EBITDA, or 2.5x to 4.0x SDE. Companies with enterprise clients, technology platforms, and high search volumes command the highest multiples.
Revenue multiples generally range from 0.50x to 1.5x annual revenue. Companies with SaaS-like technology platforms and enterprise integrations achieve the upper end.
The unique valuation factor for background screening is the technology platform and ATS integrations. Companies with proprietary ordering platforms integrated into major Applicant Tracking Systems (Workday, Greenhouse, iCIMS, ADP) create deep technical switching costs. Search volume per client is a key metric — large employers with high turnover generate thousands of searches annually. Compliance expertise with FCRA, EEOC, and state-specific regulations creates barriers to entry. Companies with direct source access (court runners, proprietary databases) have cost advantages over those relying entirely on third-party data aggregators.
Background screening has attracted PE investment, with platforms like Sterling, HireRight, and Checkr driving industry consolidation. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do background screening companies sell for?
Background screening companies typically sell for 4.0x – 7.0x SDE or 6x – 12x EBITDA. Companies with high retention, modern technology, and full services command premium multiples.
How does technology platform affect screening value?
Significantly. Modern platforms with ATS integrations are expected. Legacy systems may limit competitive positioning and scalability.
Who buys background screening companies?
National screening companies, PE-backed HR tech platforms, staffing companies adding screening, and payroll/PEO companies building employer services.
How important is PBSA accreditation?
Important. PBSA accreditation demonstrates industry-standard practices and compliance commitment. Some clients require accredited providers.
Does service breadth affect value?
Yes. Full-service offerings capture more revenue per client. Limited services mean clients need multiple vendors.
What's the fastest way to increase my background screening value?
Three high-impact moves: 1) Upgrade technology platform and build ATS integrations, 2) Expand service offerings to capture full client needs, 3) Achieve PBSA accreditation.