Public Sector and Framework Contracts: Premium Value for Security Businesses

When a security business holds public sector contracts or a place on an approved supplier framework, buyers notice. That kind of revenue is creditworthy, long-term and not easily replicated, and it consistently adds a premium to what a business is worth. This article explains why framework and public sector work is valued so highly, and how to protect it when you come to sell.

Why Public Sector Revenue Is Different

Public sector clients, local authorities, NHS bodies, social housing providers, schools, universities and central government estates, pay reliably and contract for the long term. For a security business, that means a base of predictable, creditworthy income that is far less exposed to the swings of the private market. Buyers value certainty, and public sector contracts supply it.

There is also a structural reason demand is rising. As police staffing has come under pressure, public bodies have turned increasingly to private guarding, and the uniformed guard segment saw a sharp jump in M&A activity year on year on the back of it (Capstone Partners / Security Info Watch, 2025). A business already embedded in public sector work is positioned in a part of the market that is growing.

Frameworks Are Hard to Replicate

A place on an approved supplier framework is not something a buyer can simply recreate. Getting onto a framework takes time, a track record, the right accreditations, and a competitive tender. When a buyer acquires a business that already holds framework positions, that access comes with it. That is precisely why sophisticated acquirers pay a premium: they are buying years of qualification they would otherwise have to earn from scratch.

Framework eligibility usually depends on accreditation. SIA Approved Contractor status for guarding, NSI Gold or SSAIB certification for systems, BS 7858 vetting, and operation to the relevant EN standards are frequently prerequisites to bid at all. A business that holds these has cleared the bar that keeps most competitors out, and the framework revenue that follows is part of what a buyer is paying for.

Martyn's Law Adds to Public Sector Demand

A specific regulatory tailwind is building. Martyn's Law, the Terrorism (Protection of Premises) Act 2025, received Royal Assent on 3 April 2025 and is expected to come into force around spring 2027 after an implementation period of at least 24 months, with the SIA as regulator (GOV.UK, 2025). It will require many publicly accessible premises and events to assess and reduce their vulnerability to attack. Local authorities, venues and public estates fall squarely within scope, which points to rising demand for security assessments, guarding and electronic upgrades across exactly the public sector clients that frameworks serve.

How Buyers Price Framework Access

Framework and public sector contracts tend to lift a valuation in two ways. They raise the quality of the revenue, which supports a higher multiple on the same earnings, and they widen the pool of interested buyers, because consolidators and larger groups specifically want the public sector access. A broader, more competitive field of buyers is itself one of the most reliable ways to improve the final figure.

The effect is strongest when the framework revenue is genuinely transferable. Buyers will check whether contracts and framework places survive a change of ownership, whether they are tied to named individuals or to the business, and how long they run. The cleaner and more transferable the arrangements, the more of the premium the seller actually captures.

Protecting Framework Value Through a Sale

Because framework positions can be sensitive to ownership change, they need careful handling in a sale. Confidentiality matters: you do not want clients or competitors learning of a sale prematurely, and a managed, staged process keeps the information controlled until the right point. Equally, the documentation around each framework, its terms, its duration, and the accreditations it depends on, should be clear and ready, so the value is evidenced rather than questioned late in due diligence.

If your business holds public sector contracts or framework places, that is a genuine asset to build a sale around, and there is an active market of buyers who will pay for it. Among the 8 to 10 vetted buyers we would typically introduce, several actively seek public sector access. The buyer pays our fee, not you, and the first step is simply a confidential conversation about what you have and what it is worth.