Security Business Valuation UK & US: 2026
Security M&A hit 242 deals in 2025, up 24.1% year-on-year. Here is what your security business is worth in 2026 with UK and US valuation data and buyer profiles.
DealFlowAgent is the UK and US's only M&A advisory and brokerage firm specialising in electronic security businesses. We help owners secure multiple acquisition offers at higher valuations.
Sell your security systems businessIf you own a security systems business - alarm monitoring, CCTV, access control, guarding, or integrated electronic security - you are operating in one of the most actively acquired sectors in UK and US M&A right now. Deal volumes jumped 24.1% year-on-year in 2025 to 242 transactions, according to Capstone Partners' Security Solutions M&A Update (February 2026). Private equity is piling in, strategic acquirers are consolidating at pace, and multiples for well-run recurring revenue businesses are holding firm.
This guide sets out what a security business is worth in 2026, who is buying, and what you need to do to achieve a premium exit. We cover both the UK and US markets, because buyer appetite crosses borders and understanding both gives you negotiating leverage.
If your business spans security and fire protection - a common combination in UK trade-installed systems - you may also want to read our fire safety M&A sector overview, which covers valuation dynamics specific to that adjacent niche.
Market Overview: UK and US Security in 2026
Deal Volume and Momentum
Security M&A had a breakout year in 2025. The Capstone Partners February 2026 update recorded 242 security sector transactions - a 24.1% increase on 2024. Private equity add-on deals made up 45.9% of all transactions, up 14.4% year-on-year. PE platform-level deals rose 33.3% to 20 transactions. Private strategic M&A grew 36.1%, accounting for 34.3% of deal volume.
The Fire & Life Safety segment was particularly active, jumping 66.7% year-on-year to 125 transactions. Even Uniformed Guard - historically a lower-multiple, operationally heavy segment - saw a 150% year-on-year increase, albeit from a small base of 9 deals.
These numbers reflect a structural shift: security is no longer treated as a support function. It is infrastructure, and acquirers are pricing it accordingly.
Growth Drivers in 2026
Three macro themes are driving buyer appetite on both sides of the Atlantic:
Data centre construction. The global data centre build-out - accelerated by AI infrastructure demand - is generating enormous demand for integrated security systems. Fire suppression, access control, and 24/7 monitoring are not optional in these facilities. Specialist security contractors with data centre experience are commanding material premiums.
School safety. In the US, the Warburg Pincus acquisition of Raptor Technologies from Thoma Bravo for $1.8 billion (November 2025) signalled institutional conviction in the school safety vertical. Raptor provides visitor management and emergency response software to over 5,000 school districts. The deal demonstrates how technology-integrated security platforms attract valuations far beyond traditional alarm monitoring multiples.
Public safety gaps. Both the UK and US face recognised shortfalls in public infrastructure protection. In the UK, the Building Safety Act 2022 - enacted following the Grenfell Tower fire - is pushing commercial building owners to upgrade integrated safety and security systems. This creates a sustained pipeline of retrofit and upgrade contracts for security businesses with the right certifications.
UK Market Structure
The UK security market is dominated at the top end by listed and PE-backed operators. Mitie leads with GBP 1.179 billion in turnover (2025 figures from the Infologue Top 100 UK Security Companies), followed by Allied Universal/G4S at GBP 710 million, OCS Group UK at GBP 395 million, Securitas Security Services UK at GBP 345 million, and Bidvest Noonan at GBP 302 million.
Below these giants sits a large fragmented middle market of owner-managed businesses - typically GBP 1 million to GBP 30 million in revenue - that represent the primary acquisition targets for consolidators and PE roll-up platforms.
US Market Structure
The US market is the largest security market globally. ADT reported $359 million in recurring monthly revenue (RMR) as the country's dominant residential and commercial security provider. Securitas Technology generated $100 million RMR. Everon - formerly ADT Commercial, now independent and based in Irving, Texas - reported $38.7 million RMR. Vector Security posted $19.7 million RMR. These figures come from the SDM Top 100 Security Dealers 2025 ranking, the industry's benchmark for operator scale.
EBITDA Multiples: What Security Businesses Are Worth in 2026
Valuation multiples in security vary significantly by business size, revenue quality, and buyer type. The table below sets out the ranges you should expect, drawing on data from Peak Business Valuation's security alarm multiples analysis and the Capstone Partners deal data.
| Business Type | SDE Multiple | EBITDA Multiple | EV/Revenue | Context |
|---|---|---|---|---|
| Small alarm monitoring (owner-managed, <GBP 2M revenue) | 2.15x - 3.20x | 3.05x - 4.90x | 0.56x - 0.81x | Applies to single-site or regional operators with mixed contract/call-out revenue |
| Mostly recurring revenue (RMR/ARR dominant) | 5.00x - 6.00x SDE | 5.00x - 7.00x | 1.00x - 1.50x | Higher multiple reflects cash flow predictability; applies UK and US |
| Mid-market electronic security (GBP 5M-30M revenue) | N/A | 6.00x - 10.00x | 1.50x - 2.50x | Typically strategic or PE add-on; NSI/SSAIB accreditation adds premium in UK |
| PE-backed platform (scale, multi-site, tech-integrated) | N/A | 11.80x average (up to 20x+) | 2.20x average | Five-year average per Capstone; technology and data centre exposure drives upper range |
How to read this table: The SDE (Seller's Discretionary Earnings) multiple applies to smaller, owner-managed businesses where the owner's salary and personal expenses are added back. EBITDA multiples are standard from mid-market upwards. Revenue multiples are a secondary cross-check, not typically used as the primary valuation basis for security businesses.
The 11.8x average EV/EBITDA for PE-backed platforms is a five-year sector average per Capstone Partners. Individual transactions in the data centre security and school safety sub-verticals are trading materially higher - the Raptor Technologies deal at $1.8 billion implies a significant premium to this benchmark.
For a detailed comparison of how these multiples compare to the adjacent fire safety sector - which often shares buyers and regulatory overlap - see our fire safety M&A report 2026.
Who Is Buying Security Businesses
UK Buyers
The UK acquisition market for security businesses is active across three buyer categories:
Listed trade buyers like Mitie are acquisitive at the top end, targeting businesses with GBP 10 million+ revenue that complement their existing facilities management and guarding operations. Mitie's scale - GBP 1.179 billion in security turnover - means smaller bolt-on deals are rarely transformative for them, but they do pursue niche capability acquisitions.
Allied Universal/G4S (GBP 710 million UK turnover) is part of the world's largest security company by revenue. Following Allied Universal's acquisition of G4S in 2021, the combined entity has significant capacity for UK bolt-on deals, particularly in technology-enabled security and integrated solutions.
Securitas (GBP 345 million UK turnover) has signalled a strategic shift toward electronic security and intelligence-led solutions globally. UK owner-managed businesses with strong CCTV, access control, and monitoring capabilities fit this acquisition thesis.
Private equity interest in the UK security market is growing. The model is well established in adjacent sectors - The Pace Group, LDC-backed, has executed 19 acquisitions in the lift maintenance sector and reached GBP 32 million in revenue. The same buy-and-build playbook is being applied to UK electronic security by several emerging platforms.
For business owners considering a sale, understanding who the active buyers are - and what they are actually paying - is half the battle. Our buy-side services page sets out how we work with acquirers and what that means for sellers in terms of deal structure and pricing.
US Buyers
Pye-Barker Fire & Safety is the standout consolidator in the US market. Backed by Gemspring Capital, Pye-Barker completed 57 acquisitions in 2025 - a pace that made it the most active acquirer in the fire and security space by deal count. With 9,000 employees across 47 states and $26.6 million in RMR, Pye-Barker is a genuine buyer for US security businesses with recurring revenue and regional market presence. If you operate in the US market and have not had a conversation with Pye-Barker, you are probably leaving value on the table.
ADT ($359 million RMR) remains the dominant buyer for residential and SME commercial alarm businesses. Its acquisition appetite focuses on RMR portfolios and businesses in geographic markets where it wants to build density.
Everon (formerly ADT Commercial, $38.7 million RMR) is pursuing commercial security acquisitions independently following its separation from ADT. Its focus is on larger commercial accounts, enterprise access control, and integrated security systems.
Allied Universal is active in both the UK and US markets. Its August 2025 acquisition of Mulligan Security in the US demonstrated continued appetite for uniformed guard businesses with strong commercial client rosters.
Flock Safety - backed by a16z, Axon, and Y Combinator - reached a $7.5 billion post-money valuation in 2025. Its focus on automated licence plate recognition and law enforcement partnerships represents the technology end of the spectrum, but it signals the valuations that technology-differentiated security businesses can achieve with the right investor base.
What Drives Premium Valuations in Security
Not all security businesses are valued equally. The gap between a 3x EBITDA exit and a 10x+ exit comes down to a handful of specific factors.
Recurring Monthly Revenue (RMR) and Annual Recurring Revenue (ARR). This is the single biggest value driver in security. Alarm monitoring contracts, maintenance agreements, and subscription-based access control platforms all generate predictable, contractually committed cash flow. Buyers will pay a material premium - often 2x-3x the EBITDA multiple of a comparable project-based business - for high RMR concentration. The rule of thumb: the closer your revenue split is to 80% recurring, the higher your multiple.
NSI and SSAIB certification (UK). The National Security Inspectorate (NSI) and the Security Systems and Alarms Inspection Board (SSAIB) are the two principal quality certification bodies for UK security installers and monitoring centres. NSI or SSAIB accreditation is effectively a requirement for winning commercial contracts with insurance-approved systems. Businesses without these certifications face a buyer pool limited to smaller trade acquirers.
SIA licensing compliance (UK). The Security Industry Authority regulates the private security industry under the Private Security Industry Act 2001. SIA licensing - currently GBP 204 per licence with three-year validity - applies to door supervisors, security guards, CCTV operators, and vehicle immobilisers. A clean SIA compliance record is a basic expectation in any UK security business sale process; any gaps create due diligence problems that depress value.
Contract length and customer concentration. Five-year monitoring contracts with automatic renewal provisions are significantly more valuable than 12-month agreements. Buyer concern about customer concentration - any single client representing more than 15-20% of revenue - will be reflected in deal structure through earn-outs or deferred consideration.
Technology integration. Businesses that have moved beyond legacy analogue systems into IP-based CCTV, cloud-managed access control, and AI-assisted monitoring platforms are attracting higher multiples. The Flock Safety valuation ($7.5 billion) is an extreme example, but even at the owner-managed level, technology-forward businesses are achieving EBITDA multiples 1x-2x above sector averages.
GDPR and data compliance (UK CCTV). CCTV operators in the UK must comply with UK GDPR and the Data Protection Act 2018. Buyers will conduct specific data compliance due diligence. Businesses with documented data retention policies, privacy impact assessments, and ICO registration in good standing command higher confidence - and better terms - in a sale.
For business owners also operating in building services, the BADR tax changes effective April 2026 have a direct bearing on exit timing and net proceeds. Worth reviewing before you set a sale timetable.
UK vs US: Key Differences for Security Business Sellers
Understanding the structural differences between the UK and US markets matters when you are evaluating potential buyers or considering cross-border acquisition approaches.
Regulatory environment. In the UK, regulation is relatively centralised. The Security Industry Authority sets nationwide licensing standards. NSI and SSAIB provide consistent quality benchmarks across installer and monitoring businesses. This makes UK due diligence more predictable: buyers know what they are looking for and can assess compliance quickly.
In the US, security regulation is state-by-state. Florida's Chapter 493 (regulated by the Florida Department of Agriculture and Consumer Services) differs materially from California's requirements, which differ again from Texas. Pye-Barker's ability to operate across 47 states reflects the complexity of managing multi-state licensing - a significant operational overhead that buyers factor into their integration costs.
Market structure and scale. The US market is approximately ten times larger than the UK market by revenue. This means US buyers are generally more comfortable with acquisitions at smaller relative scale, and PE roll-up platforms move faster. The 57 acquisitions Pye-Barker completed in 2025 would not be replicable in the UK market simply because the target pool is smaller.
RMR vs. project revenue weighting. US security businesses - particularly residential alarm monitoring - are heavily RMR-weighted. The entire SDM Top 100 ranking is built around RMR as the primary metric. UK businesses tend to have a higher proportion of project installation revenue mixed with monitoring, which can make UK EBITDA margins look different from US comparables even where the underlying business quality is similar.
Buyer profiles. UK trade buyers are predominantly listed facilities management and guarding companies pursuing strategic fit. US buyers are more frequently PE-backed consolidators pursuing pure multiple arbitrage on fragmented regional operators. This distinction matters for deal structure: UK trade buyers often offer clean cash deals with limited earn-outs; US PE buyers frequently use earn-outs to bridge valuation gaps.
How to Prepare Your Security Business for Sale
Preparation determines whether you achieve the sector average multiple or beat it. These are the six areas that make the most difference.
1. Document your recurring revenue clearly. Produce a clean schedule of all monitoring, maintenance, and subscription contracts - contract start dates, renewal dates, monthly values, and termination clauses. Buyers will model your RMR/ARR in the first week of due diligence. If you cannot produce this schedule quickly and accurately, it signals operational weakness.
2. Get NSI or SSAIB accreditation current (UK). If your accreditation has lapsed or you have outstanding non-conformities from your last audit, resolve them before going to market. Buyers use certification status as a proxy for operational quality. A lapsed certification will trigger price chip attempts.
3. Reduce customer concentration. If one or two clients account for more than 20% of revenue, work on diversification before a sale. This may mean turning down large contracts in the 12-18 months before exit, which feels counterintuitive but directly protects your headline multiple.
4. Clean up SIA and employment records (UK). Ensure all employed and contracted personnel hold valid SIA licences for their roles. Maintain organised personnel files. Buyers conducting HR due diligence will look at licence expiry dates across your workforce.
5. Separate personal from business expenses. Owner-managed security businesses often carry personal costs through the P&L. A clean set of management accounts with clear add-backs - properly documented and consistently applied - makes the EBITDA calculation straightforward. Buyers will challenge anything they cannot verify.
6. Build a technology narrative. Even if your business is not a SaaS platform, articulate how you use technology - whether that is your monitoring software, CRM, field service management tools, or customer portal. Buyers are paying for the future as well as the past. A credible technology roadmap, even at modest scale, justifies a higher forward-looking multiple.
Frequently Asked Questions
What EBITDA multiple should I expect for my security business in 2026? It depends on size and revenue quality. Small owner-managed alarm businesses are typically valued at 3.05x-4.90x EBITDA. Mid-market electronic security businesses with GBP 5 million-plus revenue are achieving 6x-10x. PE-backed platforms average 11.8x over the last five years, with technology-integrated businesses reaching 20x or above.
Is recurring revenue really that important to valuation? Yes, more than almost any other factor. Businesses where recurring revenue (monitoring, maintenance, subscription) accounts for 70-80%+ of total revenue can achieve SDE multiples of 5x-6x, compared to 2.15x-3.20x for project-heavy businesses. Buyers are pricing the predictability and retention of that cash flow, not just the current year earnings.
Do UK security business valuations differ from US valuations? The multiple ranges are broadly comparable, but the market structure differs. US buyers - particularly PE consolidators like Pye-Barker - are more active at smaller deal sizes. UK trade buyers tend to be more selective. Regulatory differences (SIA vs. state licensing) affect due diligence scope but not headline multiples materially.
What does NSI/SSAIB certification do for my valuation? It expands your buyer pool to include insurance-grade commercial acquirers and removes a material risk flag from due diligence. An NSI Gold or SSAIB-accredited business will attract more competing bids than an equivalent non-accredited business, which drives up the final price.
How does the SIA affect a UK security business sale? The Security Industry Authority's licensing requirements are a compliance baseline. Any gaps in SIA licensing across your workforce will be identified in due diligence and used to justify a price reduction. Maintaining clean SIA records is a basic pre-sale requirement.
Who are the most active buyers of security businesses right now? In the US, Pye-Barker Fire & Safety (57 acquisitions in 2025) is the most acquisitive buyer by deal count. ADT remains active for RMR portfolio acquisitions. In the UK, Mitie, Allied Universal/G4S, and Securitas are the dominant trade buyers. PE interest in UK electronic security roll-ups is growing.
What is RMR and why do buyers focus on it? RMR stands for Recurring Monthly Revenue - the contracted monthly income from monitoring, maintenance, and subscription services. It is the primary valuation metric in the US security market (as tracked by the SDM Top 100) and increasingly important in UK deal analysis. High RMR relative to total revenue signals business quality and reduces buyer risk.
How long does it take to sell a security business? A well-prepared security business with clean accounts, current certifications, and documented recurring revenue typically takes 6-12 months from mandate to completion. Complex businesses - multi-site, mixed guarding and electronic, or with regulatory issues - take longer. Starting preparation 12-18 months before your target exit date is the right approach.
Can a UK security business attract US buyers? Yes, particularly if the business has a technology differentiator, operates in a high-growth sub-vertical (data centre security, integrated systems), or has a scale that justifies transatlantic due diligence cost. Most cross-border interest at the owner-managed level comes through intermediaries who have relationships with US PE platforms actively building UK presence.
What is the impact of the Building Safety Act 2022 on security business valuations? The Act has increased compliance requirements for higher-risk buildings in the UK, driving demand for upgraded integrated fire and security systems. Security businesses with demonstrable expertise in Building Safety Act compliance - particularly those serving residential high-rise or complex commercial buildings - are positioned well for both new contract wins and premium valuations.
Ready to Understand What Your Security Business Is Worth?
The security sector is in a period of genuine consolidation. Deal volumes are up, PE interest is increasing, and buyers are competing for quality recurring revenue businesses on both sides of the Atlantic. If you have been building a security business over the last decade, the conditions for a premium exit are as favourable now as they have been for years.
Getting the right value starts with understanding where you sit in the market - your multiple range, your buyer pool, and what you need to do before going to market to maximise your outcome.
Talk to the DealFlowAgent team about your security business. We work with security business owners across the UK on confidential sale mandates, valuation assessments, and exit planning. No obligation, no generic advice - just a direct conversation about your specific situation.
Sources: Capstone Partners Security Solutions M&A Update, February 2026; Peak Business Valuation - Security Alarm Valuation Multiples; Pye-Barker Fire & Safety - 57 Acquisitions in 2025; Security Industry Authority (UK); SDM Top 100 Security Dealers 2025; Infologue Top 100 UK Security Companies 2025.
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