Security Services Business — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
2.5×
Typical
3.5×
Max
5×
Revenue Model
Recurring
Capital Intensity
Low
A typical multiple of 3.5× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Security services businesses typically trade at 2.5×–5× EBITDA. Licensed workforces, long-term site security contracts, and technology-enabled monitoring services support the upper end. Government or critical infrastructure contracts add significant credibility and stability. The sector is characterised by low margins, high labour intensity, and competitive tender environments, which all weigh on valuations.
Key Value Drivers
- Licensed workforce with compliance credentials
- Long-term site security contracts
- Technology-enabled monitoring services
- Government or critical infrastructure contracts
- Manned guarding plus CCTV/alarm integration
Key Risks
- Low-margin, labour-intensive model
- Licence compliance costs
- Staff turnover and vetting requirements
- Competitive tender environment
- Public sector budget sensitivity
Related Industries
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.