The security business acquisition market in 2026.
A clear view of valuations, buyers, and the forces shaping the sector.
A large, fragmented market that buyers are consolidating.
About 23,200 active companies in private security and security systems services are registered at Companies House. Source: Companies House, October 2026.
In the UK private security guarding market, national operators such as Mitie Security, G4S and OCS sit above a long tail of owner-managed firms. Alongside it, the electronic security systems market, covering intruder alarms, CCTV, access control and monitoring, is worth about £2.1bn in 2026. That second market is the recurring-revenue end of the sector. Source: IBISWorld, Private Security Services and Security System Services in the UK, 2026.
The regulated workforce is large. More than 500,000 active Security Industry Authority (SIA) licences are in issue, held by around 448,000 people, and most of them are door supervision licences. A licensed, vetted and retained workforce is part of what a buyer pays for, because it cannot be assembled quickly. Source: GOV.UK, SIA Licence Holders statistical data set, September 2026.
A market this fragmented, with this much recurring and regulated revenue, is exactly the kind of sector that consolidators, investor-backed groups buying up many firms in one trade, target. For an owner thinking about selling up, that means an active field of buyers.
Private equity is consolidating UK security.
Fire and security has become one of the most active areas of private-equity-backed consolidation. In Grant Thornton's 2025 review, 70% of UK fire and security transactions involved companies owned by private equity firms (investment firms that buy companies to grow and sell on), up from 57% the year before, against 46.2% across the wider facilities services market. Named buy-and-build platforms, groups that grow by adding smaller firms to one larger business, include New Path Fire & Security and ABCA Systems. Source: Grant Thornton, UK Fire and Security Sector M&A Review 2025.
Deal volumes reflect the same pressure. Across the wider security solutions market, 2025 saw 242 transactions, up around 24% on the year, with private equity accounting for close to half of all activity. Within that, the uniformed guarding segment recorded a sharp year-on-year jump in deal volume, partly driven by police staffing difficulties. Source: Security M&A Update, February 2026. It gives no split by country, and its examples are from the US.
These platforms are not buying at random. What makes a business easier for them to buy:
- Recurring monitoring revenue and a book of monitored or ARC-connected accounts
- SIA Approved Contractor status, NSI Gold or SSAIB certification
- BS 7858-compliant staff vetting and clean contracts whose officers would transfer under TUPE, the rules that move staff across on their existing terms
- Geographic density and a diverse, low-concentration client base
- Professional management that reduces dependence on the owner
For independent owners, this means more buyers competing for your business, which tends to drive valuations up. Periods of peak consolidation do not last forever, and businesses that are well positioned now are attracting the strongest interest.
What buyers actually pay: a worked example.
What a security business sells for depends heavily on its revenue mix. Published practitioner guidance puts integrated electronic security businesses at 6x to 10x EBITDA (profit before interest, tax, and the write-down of equipment, vehicles and other assets), and scaled, recurring-revenue platforms higher again. It gives no range for manned guarding. Monitoring and Alarm Receiving Centre books are often valued on a multiple of recurring monthly revenue instead, meaning the monthly figure is multiplied by a set number. As one published market reference point, Mitie's 2023 purchase of R H Irving, a security services provider whose work includes electronic security systems, was priced at close to 8x EBITDA. Source: Sell Your Security Business 2026 Guide, April 2026; Business Sale Report, May 2023. Practitioner guidance and one reported transaction, not guaranteed values.
The example below illustrates the method for a smaller, accredited electronic security business. The range shown uses a general SME proxy, applied conservatively. It is a method, not a promise. Owner dependency, in the profile below, means how much the business relies on its owner personally.
Example Security Business Profile
What pushes towards the top of the range: a high proportion of recurring monitoring revenue, NSI Gold or SSAIB accreditation, BS 7858-compliant vetting, accounts already migrated to IP or dual-path signalling, and low owner dependency so the business runs without the seller.
What pulls it down: thin margins, heavy reliance on a single large contract, accounts still signalling over the analogue network, or a business that cannot function without the owner on the alarm line.
Every business is different. This example illustrates the methodology, not a guaranteed figure. Your valuation depends on your specific circumstances.
The BADR rise: why timing still matters.
Business Asset Disposal Relief (BADR) provides a reduced rate of Capital Gains Tax, the tax on the gain you make when you sell, on up to £1 million of qualifying lifetime gains. The rate has gone up in stages, so owners keep less of a sale than they did, and has been 18% since Apr 2026.
| Before Oct 2024 | Oct 2024 to Apr 2025 | Apr 2025 to Apr 2026 | From 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. Rules brought in to stop owners signing early just to catch a lower rate meant that signing before the deadline did not lock in the older rate. The rate is normally set by the date the sale contract becomes binding with no conditions left, often but not always completion day, so for a security business owner already weighing a sale, it pays to understand the timeline early. Source: GOV.UK, Business Asset Disposal Relief; HMRC Capital Gains Manual, CG14261 and CG64174. Take advice specific to your circumstances.
Find out what your security business is worth.
Start with a free first conversation with Simon or Emily, in confidence. The paid Business Value & Exit Snapshot is a written, indicative view of value, and what to fix first.
Market Context
EBITDA Multiples: 6x to 10x integrated electronic security
Integrated electronic security businesses sit at 6x to 10x EBITDA and scaled, recurring-revenue platforms at 10x to 15x or more. The guidance gives no range for manned guarding. Source: published valuation guidance, 2026. Practitioner guidance.
Recurring Monitoring Revenue: A multiple of monthly RMR
Monitoring and Alarm Receiving Centre books are often valued on a multiple of monthly recurring revenue. Contracted, predictable income is the single biggest value driver in the sector. Source: published valuation guidance, 2026.
Active companies in private security and security systems services: About 23,200
Alongside them, the electronic security systems market is worth about £2.1bn in 2026. Source: Companies House, October 2026; IBISWorld, 2026.
Licensed Workforce: 500,000+ active SIA licences
Held by around 448,000 people. A vetted, retained and licensed workforce is part of what an acquirer pays for, because it cannot be assembled quickly. Source: GOV.UK, SIA statistics, September 2026.
PE Consolidation: 70% of 2025 UK fire and security deals PE-backed
Up from 57% in 2024, against 46.2% across the wider facilities services market. Source: Grant Thornton, 2025.
Demand Drivers: Martyn's Law, PSTN switch-off, BADR
Martyn's Law is expected to come into force in spring 2027, with the SIA as regulator; alarms still relying on the copper network need upgrading before it closes at the end of January 2027; and the BADR tax rate went up to 18% from April 2026. Source: GOV.UK / Home Office, Openreach, HMRC, 2025 to 2026.
Recurring monitoring revenue and private equity are reshaping the sector.
About 23,200 active companies are registered in private security and security systems services, and the electronic security systems market of alarms, CCTV, access control and monitoring is worth about £2.1bn in 2026. More than 500,000 active SIA licences are in issue, held by around 448,000 people. Private equity, investment firms that buy companies to grow and sell on, is consolidating the sector: in 2025, 70% of UK fire and security deals involved companies owned by private equity firms. Buyers pay a premium for recurring monitoring revenue, NSI Gold or SIA Approved Contractor status, and BS 7858 vetted teams. Since April 2026, owners who qualify for Business Asset Disposal Relief, the lower rate for selling a business you run, pay 18% on the gain instead of 14%. That is Capital Gains Tax, the tax on the profit from a sale, and the rise means owners keep a little less of the price.
Sources: Companies House, October 2026; IBISWorld, Security System Services in the UK (2026); GOV.UK, SIA Licence Holders (September 2026); Grant Thornton, UK Fire and Security Sector M&A Review 2025; GOV.UK, Business Asset Disposal Relief (2026).
Discuss the market with a sector specialist.
Tell us about your business and we will be in touch within two working days.
Thank you for getting in touch.
A security sector specialist will be in contact within two working days. Direct conversation, not a sales team. Everything you have shared is treated in the strictest confidence.