You want to sell your security company? Then it's good to know what the takeover market in the field of security companies looks like. The security industry is relatively small. It can actually be divided into two parts: security services (private security) and security via alarm systems. The market has been quite saturated for several years, according to ABN Amro, while thanks to technology trends, light is shining again at the end of the tunnel.
Security and investigation services, that's what security companies fall under. The table shows that the number of acquisitions and mergers has been fairly stable in recent years.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the business services sector - to which a security company belongs - an indicative EBITDA multiple range of 4.6 to 5.5 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the business services sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the business services sector. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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When activity in the Netherlands increases, it has a positive impact on the security sector. In figures, the number of security companies in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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The market is saturated, according to ABN AMRO. As a result, it remains at low sales growth, as described above. However, trends are visible that may increase revenue growth in the coming years:
Security guards remain important at test lanes, events and enforcement, but in addition, digitalization is also a hot topic in this industry. Large, cross-regional businesses in particular will invest in security systems. New equipment, video image analysis and high-quality cameras require specialized personnel and efficient deployment by the organization.
According to Leon Vincken, director of the Association of Security Organizations, there will actually be a shortage of skilled personnel in the coming years. An aging population will increase the demand for experienced personnel, as security guards will continue to be needed on location.
Johan Paulsson of Axis Communications predicts that the cybersecurity trend will continue. As a result, there is more and more need for reliable security professionals. Not only in person and on camera, but also in a new area: online security. Because of this development, there will be industry blurring and more knowledge and expertise in cross-industry fields of work.
