The service contracts, government clearances, and credentials that took years to earn are what set the best physical security businesses apart from anything a new competitor could build quickly.
What to know about buying a physical security services business
How physical security services businesses are valued
Asking prices are set as a multiple of earnings: 3x–8x annual profit, depending on contracts, team credentials, and how much runs without you.
Where you land in that range depends on how much of your revenue is under contract, whether your team holds transferable credentials or clearances, and how much the owner is involved day-to-day.
Customers on service contracts
A team with credentials and clearances
Contracts that extend years into the future
Multiple services under one roof
What buyers of physical security services businesses look for
Security companies looking to expand into new territories or add services
IT managed service providers looking to add physical security for their commercial clients
First-time buyers with military, law enforcement, or government backgrounds
Companies building a network of security services businesses across a region
The first questions buyers ask:
Financial Readiness. Can you show clean financials that explain where profit actually comes from: labor, hardware, or service plans?
Licenses & Compliance. Which licenses or registrations are tied to specific people, and what’s the plan if they leave?
Coverage Continuity. Can you cover nights, weekends, and “the door must work by 7 a.m.” calls? Who actually fills tomorrow’s shifts?
Closed deals
Rejigg physical security services deals closed
Across 42 closed deals on Rejigg, the median time from first pitch to close is 177.5 days.
Practical guidance from hundreds of real acquisition conversations.
Recurring Service Contracts
Ask what percentage of revenue comes from ongoing maintenance agreements and monitoring contracts versus one-time installation projects.
Businesses where a meaningful share of income comes from service contracts that renew each year are more predictable from day one.
That recurring revenue percentage shapes everything from your risk profile to the financing terms you can get.
Team Credentials and Clearances
Security clearances, locksmith licenses, and low-voltage certifications take years and real cost to build.
A team where most technicians hold active credentials is a competitive advantage that new entrants simply can't replicate quickly.
Ask for a current list of which employees hold which certifications and when each one expires.
Contract Backlog
Ask for a full contract list with expiration dates, option periods, and the realistic likelihood of renewal.
Government and commercial contracts with option years that extend well past closing give you revenue visibility that most acquisitions don't offer.
Contracts where the company is effectively the only qualified vendor in a given area are particularly worth getting excited about.
Full Service Capability
Companies that install, monitor, and service cameras, access control, intrusion systems, and alarms under one roof hold their clients more durably than specialists.
Clients prefer a single vendor for their physical security needs, and full-service capability is a big part of why they stay.
Understand which services the company offers and how revenue is distributed across installation, monitoring, and service.
Management Independence
Ask how daily operations are structured: who handles installs, dispatch, and technician oversight when the owner is out.
A security company where an operations manager runs the show without the owner's daily involvement is one you can step into and run.
The further the owner has stepped back from day-to-day management, the more transferable the business is.
Valuation
What Should You Expect to Pay?
3x-5x
SDE
Owner-operator involved in sales or technical work
5x-8x
EBITDA
With operations manager running independently and strong contract base
The spread reflects the share of revenue under contract, whether the team holds transferable clearances and credentials, and how much the business runs without the owner's daily involvement.
What drives a premium
Meaningful share of revenue from recurring maintenance agreements and monitoring contracts
Team with active security clearances, locksmith licenses, and low-voltage certifications that take years to obtain
Long-term government or commercial contracts with option years extending past the closing date
Full-service capability covering installation, monitoring, and service across multiple system types
Thinking About Selling?Read our owner's guide to selling a physical security services business, with valuation tips, buyer expectations, and step-by-step advice.
How do I contact the owner of a business I found on Rejigg?
Create a free Rejigg account; owners, and the brokers who run some sales, only hear from buyers through the platform. Open the listing to see the full profile: city, team size, financials, what is for sale, and the reason for selling. Sign Rejigg's standard Fee & Confidentiality Agreement for that business; it is the same form for every deal. Verify your phone, then send your pitch from the listing. Replies, meetings, and documents all run through Rejigg.
Can I email Rejigg to get introduced to an owner?
No. Rejigg does not forward emails to owners or brokers, so a note to support@ or hello@ with a listing link will not reach them. Create a free account, open the listing, sign the agreement for that business, verify your phone, and send your pitch; that reaches them in a few minutes.
Can you show clean financials that explain where profit actually comes from: labor, hardware, or service plans?
Buyers are checking whether earnings come from repeatable service and labor, or from hardware pass-through and timing noise. They want numbers that match how security work bills and collects, including open jobs, billing milestones, and AR reality. If gross margin drivers are unclear, buyers usually protect themselves with a lower price, escrow, or holdback.
Which licenses or registrations are tied to specific people, and what’s the plan if they leave?
Buyers are confirming the company can legally staff posts, pull permits, and enter restricted sites on day one after closing. They also look for delays tied to renewals, background checks, fingerprinting, qualifying-agent rules, and site-specific clearances. A written continuity plan lowers the risk of a forced pause in operations or an escrow requirement.
Can you cover nights, weekends, and “the door must work by 7 a.m.” calls? Who actually fills tomorrow’s shifts?
Buyers want proof that staffing and emergency response work without the owner doing heroics. They look for real scheduling and dispatch controls: rotation, escalation, backfill capacity, and supervisor checks. If posts go uncovered or urgent outages sit, customers often switch providers fast.
What kind of contracts do you really have, and can they be assigned?
Buyers are validating that revenue can transfer and that key customers will not be able to terminate or rebid immediately. They focus on change-of-control and assignment clauses, named-person requirements, special insurance, prime-contractor dependencies, and strict site rules. A clear list of consent-required accounts helps protect price and reduces last-minute deal surprises.
Can you show job-level results, not just company-wide margins? How often do fixed-price installs blow up, and why?
Buyers want to see that installs are scoped correctly and labor is controlled, especially on retrofits, where surprises can crush margin. They look for early detection of overruns, disciplined change orders, and consistent project closeout. Without job-level proof, most buyers assume the blended margin is fragile.
How do you capture hours, approve exceptions, and prevent buddy punching? How do you control overtime?
In guarding and patrol models, payroll control largely determines profit. Buyers look for wage and hour exposure, break and training time compliance, travel time handling, and whether time edits are controlled. Strong timekeeping reduces legal risk and makes cash flow easier to finance. Weak controls often lead to escrows, special indemnities, and slower diligence.