Cybersecurity Business Valuation
Cybersecurity & MSSP Business Valuation Calculator & Exit Planning Built for Security Services Owners
We built one platform that tracks your cybersecurity 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 Cybersecurity Services Owners Have No Idea What Their Business is Actually Worth
Current Cybersecurity Services / MSSP Valuation Multiples (2026)
Cybersecurity services command premium valuations due to market demand. Here's the landscape:
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 No more waiting for annual appraisals or paying $15K+ for outdated reports.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 Cybersecurity Value
Your technical expertise matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Recurring Revenue
70%+ MRR/Managed Services
Managed security services with monthly recurring revenue command premium valuations. Project-based assessments are valuable but one-time. Companies with 70%+ recurring revenue from managed SOC, MDR, or MSSP services attract the highest multiples. Track your recurring versus project mix.
Project-only = lower multiples
Service Specialization
Defined Security Focus
Generalist IT with some security competes differently than specialized cybersecurity. Focused security services—SOC-as-a-service, MDR, compliance, penetration testing, incident response—demonstrate expertise that commands premium positioning. Specialization attracts strategic buyers.
Generalist = commodity positioning
Client Retention
High Retention, Low Churn
Security services should be sticky—once a client trusts you with their security, switching is disruptive. High client retention demonstrates service quality and relationship strength. Track retention and understand any churn reasons. Low retention is a significant red flag.
High churn = service concerns
Technical Team
Certified Security Professionals
Security analysts, engineers, and architects with certifications (CISSP, CEH, etc.) are your delivery capacity. Skilled security professionals are extremely hard to hire. Team retention, certifications, and capabilities matter significantly for valuation.
Talent gaps = capability limits
Technology Platform
Scalable Security Stack
Your security technology stack—SIEM, EDR, vulnerability management, etc.—affects both capability and scalability. Mature technology platforms enable efficient service delivery. Proprietary tools or processes can add value if they provide differentiation.
Manual processes = scaling challenges
Compliance Capabilities
Regulatory Frameworks Supported
Supporting compliance frameworks—HIPAA, PCI, SOC 2, CMMC—expands your addressable market. Compliance-driven security has strong demand as regulations increase. Understanding which frameworks you support and having demonstrated capabilities adds value.
No compliance = market limits
How to Value a Cybersecurity or MSSP Business
The U.S. managed security services provider (MSSP) market has grown rapidly, generating approximately $15 billion in annual revenue. MSSPs provide cybersecurity monitoring, threat detection, incident response, compliance consulting, and security infrastructure management.
EBITDA is the primary valuation method. MSSPs typically sell for 4.0x to 10.0x EBITDA — among the highest multiples in IT services, reflecting the sector's strong growth, high switching costs, and critical service nature. Smaller firms use SDE multiples of 3.0x to 5.0x.
Revenue multiples for MSSPs generally range from 1.0x to 2.5x annual recurring revenue. The percentage of revenue that is monthly recurring (MRR) is the single most important valuation metric.
The unique valuation factor for MSSPs is the monthly recurring revenue percentage and SOC capability. MSSPs with 80%+ of revenue from recurring managed security contracts are valued at significant premiums over project-based cybersecurity consultancies. Companies operating a Security Operations Center (SOC) with 24/7 monitoring capabilities have infrastructure that takes years and millions of dollars to build. Compliance expertise in specific frameworks (HIPAA, PCI-DSS, CMMC, SOC 2) creates vertical specialization that commands premium pricing. The cybersecurity talent shortage makes employee retention a critical value driver.
Cybersecurity M&A has been one of the most active sectors in technology services, driven by growing threats and regulatory requirements. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do cybersecurity companies sell for?
Cybersecurity companies typically sell for 4.0x – 8.0x SDE or 8x – 16x EBITDA—among the highest in tech services. Companies with high recurring revenue and specialized services command premium multiples.
How does recurring revenue affect cybersecurity value?
Dramatically. Managed security services with 70%+ MRR command premium valuations. Project-based assessments are valuable but valued lower than recurring revenue.
Who buys cybersecurity companies?
PE-backed security platforms (very active), larger MSSPs building scale, MSPs adding security capability, and strategic buyers seeking specific security expertise.
Does specialization affect cybersecurity value?
Yes. Focused security services command premium positioning. Generalist IT with some security competes differently than specialized cybersecurity providers.
How important is the technical team?
Critical. Certified security professionals are extremely hard to hire. Team capabilities, certifications, and retention significantly impact valuation.
What's the fastest way to increase my cybersecurity value?
Three high-impact moves: 1) Build managed security services for recurring revenue, 2) Specialize in specific security domains, 3) Invest in team certifications and retention.