Security Guard Business Valuation
Security Guard Business Valuation Calculator & Exit Planning Built for Operators
We built one platform that tracks your security company's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
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Most Security Company Owners Have No Idea What Their Business is Actually Worth
Current Security Guard Services Valuation Multiples (2026)
Security guard company valuations have strengthened as consolidators seek contract revenue and geographic expansion. 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 No more waiting for annual appraisals or paying $15K+ for outdated reports.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 Security Guard Business Value
Guard headcount tells part of the story, but sophisticated buyers evaluate these factors when determining premium pricing:
Contract Quality
Multi-Year Contracts
Not all security contracts are created equal. Multi-year agreements with automatic renewal provisions provide predictable revenue that buyers value highly. Month-to-month arrangements, while common, create uncertainty that reduces your multiple. Work on converting your best clients to longer terms with built-in rate escalations—it's worth the conversation.
Month-to-month only = unstable revenue
Client Diversification
No Client > 15% Revenue
What happens if your biggest client leaves? If losing one or two contracts would devastate your revenue, buyers see concentration risk that demands a discount. Diversified client bases—no single client representing more than 15% of revenue—demonstrate stability and reduce buyer anxiety. It also shows you can sell, not just service existing relationships.
Concentrated = dangerous dependency
Guard Retention
Below Industry Turnover
Security industry turnover rates are notoriously high—often 100%+ annually. If your retention numbers are better than industry average, that's a genuine competitive advantage worth highlighting. Lower turnover means lower recruiting and training costs, better client relationships, and fewer operational headaches for the new owner. Track and benchmark your retention religiously.
High turnover = constant recruiting costs
Service Mix
Guards + Patrol + Technology
Standing guards are the baseline, but diversified services command premium valuations. Mobile patrol routes, alarm response contracts, and technology integration (access control, CCTV monitoring) provide additional revenue streams with often better margins. Buyers see service diversification as growth potential and reduced dependency on any single service type.
Standing guards only = commodity service
Licensing & Compliance
Full State Licensing, Clean Record
Security licensing requirements vary by state but compliance is non-negotiable for buyers. Proper agency licensing, guard registration, insurance certificates, and clean regulatory history are table stakes. Any compliance issues—even historical ones—create deal risk. Ensure your documentation is impeccable before going to market.
Licensing issues = deal complications
Owner Role
Sales & Client Relations
Owners still doing guard scheduling, payroll, and site supervision are running operations, not building value. The transition to sales, client relationship management, and strategic growth is what creates a business someone else can run. If you're the one getting the 2am call about a no-show, you haven't built a transferable operation.
Owner in operations = limited scalability
How to Value a Security Guard Business
The U.S. contract security guard industry includes thousands of companies generating approximately $35 billion in annual revenue. Security guard companies provide uniformed guards, patrol services, event security, and executive protection for commercial, institutional, and government clients.
EBITDA or SDE is used depending on company size. Security guard companies typically sell for 2.0x to 4.0x SDE, or 3.0x to 6.0x EBITDA. Companies with government contracts, long-term corporate agreements, and specialized capabilities command the highest multiples.
Revenue multiples generally range from 0.15x to 0.35x annual revenue — reflecting the labor-intensive, thin-margin nature of the business. Gross profit multiples of 2.0x to 4.0x are often more meaningful.
The unique valuation factor for security companies is the contract portfolio and bill-rate-to-pay-rate spread. Long-term contracts (multi-year) with automatic renewal provisions provide revenue stability. The spread between what clients pay per guard hour and what guards are paid determines profitability — companies with strong bill rates and efficient operations maintain 15-25% gross margins. Government contracts, healthcare facility security, and specialized services (armed guards, executive protection, cybersecurity-integrated physical security) command premium bill rates.
The security guard industry has consolidated through companies like Allied Universal, Securitas, and G4S, but strong regional operators with established contracts remain acquisition targets. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do security guard companies sell for?
Most security guard companies sell for 2.0x – 3.5x SDE or 4x – 6.5x EBITDA for larger operations. Companies with multi-year contracts, diversified clients, and service variety command the higher end.
How do contract terms affect security business value?
Significantly. Multi-year contracts with auto-renewal provide predictability that buyers pay premium multiples for. Month-to-month arrangements create uncertainty. Work on converting key clients to longer terms before selling.
Who buys security guard companies?
Regional and national security consolidators are most active. You'll also see PE-backed platforms building geographic footprints, facility services companies adding security, and individual buyers seeking established businesses.
How important is guard retention for valuation?
Very important. Below-average turnover demonstrates operational excellence and reduces buyer concerns about post-acquisition staffing challenges. Track your retention rate and benchmark against industry averages (often 100%+ annually).
Should I add technology services before selling?
If feasible, yes. Alarm response, access control management, and CCTV monitoring add revenue streams with better margins than standing guards alone. Technology integration also shows you're adapting to industry trends.
What's the fastest way to increase my security company value?
Three high-impact moves: 1) Convert key clients to multi-year contracts, 2) Diversify client base so no single account dominates, 3) Add patrol or technology services to create additional revenue streams.