Specialist Security Business Brokers, United Kingdom
simon@securitybusinessforsale.co.uk • 01256 486999
MARKET INTELLIGENCE

The security acquisition market in 2026.

What you need to know about valuations, buyers, and the forces shaping the sector.

THE TRANSITION

The analogue phone line switch-off is reshaping the sector.

The UK government's commitment to phase out analogue phone lines by 2027 is creating a structural shift in the security systems market. Businesses with IP-based alarm installation capability, SSAIB or NSI accreditation, and operatives trained in digital connectivity are being valued at a premium.

For buyers, acquiring a business that is already positioned for this shift is faster and cheaper than building the capability from scratch. SIA licence refresher costs of £300 to £600 per operative, plus the time to achieve SSAIB or NSI accreditation, mean that businesses already on this journey are worth significantly more than those still reliant on legacy analogue dialler systems alone.

This is not a prediction. It is a structural change that is already driving acquisitions. Buyers are actively seeking security businesses that have already migrated their monitoring stacks, and the premium they are willing to pay reflects the cost and time they save by acquiring rather than building.

Hands programming an intruder alarm keypad during installation
CONSOLIDATION

Private equity is buying security businesses at scale.

Over 90 UK security acquisitions were completed in 2024 alone. Private equity firms are building buy and build platforms in the private security sector, assembling regional businesses into national operations with shared back-office, procurement, vetting and training infrastructure.

They target businesses with:

For independent owners, this means more buyers competing for your business, which drives valuations up. The window of peak consolidation activity does not last forever, and businesses that are well-positioned now are attracting the strongest interest.

Night exterior of commercial premises with perimeter security lighting and cameras
BY THE NUMBERS

What buyers actually pay: a worked example.

To illustrate how valuations work in practice, here is a representative example based on typical market transactions.

Example Security Business Profile

Annual turnover £500,000
Adjusted EBITDA £100,000
Recurring contracts 65%
SIA-licensed operatives 8
IP/IoT monitoring trained 3 of 8
SSAIB accredited Yes
NSI accredited Yes
Owner dependency Low
Valuation range (4x-5x EBITDA) £400,000 - £500,000

What pushes towards 5x: NSI Gold or SSAIB accreditation and monitoring capability demonstrate future-readiness. Low owner dependency means the business runs without the seller. Strong recurring contract base provides predictable revenue for the buyer.

What pushes towards 4x: Geographic spread across a wide area reduces monitoring route density. Heavy reliance on a single large client introduces concentration risk. Limited NSI or SSAIB accreditation may require buyer investment in training and inspection.

Every business is different. This example illustrates the methodology, not a promise. Your valuation depends on your specific circumstances.

TAX PLANNING

The BADR deadline: why timing matters.

Business Asset Disposal Relief (BADR) provides a reduced Capital Gains Tax rate on qualifying business disposals up to £1 million. The rate has been increasing in stages, and from 6 April 2026 it rises to 18%.

Before 30 Oct 2024 30 Oct 2024 to 5 Apr 2025 6 Apr 2025 to 5 Apr 2026 From 6 Apr 2026
BADR Rate 10% 10% 14% 18%
Tax on £500K gain £50,000 £50,000 £70,000 £90,000
Tax on £1M gain £100,000 £100,000 £140,000 £180,000

These are simplified illustrations. Capital Gains Tax calculations depend on your personal circumstances. Always take advice from your accountant.

The rate change is legislation, not speculation. For a £500,000 gain, the difference between 14% and 18% is £20,000. For a £1 million gain, it is £40,000. If you are already considering a sale, starting the process now gives you the option of completing before the deadline.

NEXT STEP

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