How much does a Security Guard Company cost to buy?

A typical Security Guard Company sells for 1.5x to 2.2x annual revenue. With average revenue of $2.0M, expect to pay $3.0M to $4.4M.

How much does it cost to start a Security Guard Company?

Startup costs range from $25K to $120K depending on location, equipment, and scale.

Service

Security Guard Company

Q: What are the profit margins for a Security Guard Company?

The average profit margin for a Security Guard Company is around 10%. Payroll is typically the dominant cost (often 70-85% of revenue), plus workers' comp, general liability, uniforms, background checks, training, dispatch/timekeeping software, and supervisor overhead.

Contracted guard hours that turn into sticky, recurring revenue

Security guard companies provide on-site guarding, patrol, and event security for commercial properties, construction sites, multifamily, retail, and institutions. Revenue is typically billed per guard-hour with monthly contracts. While the model is labor-heavy and margins are thinner than many home services, well-run firms win on scheduling discipline, client retention, and upselling higher-margin services like mobile patrols and monitoring.

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Avg Revenue

$2.0M

Profit Margin

10%

Acquisition Multiple

1.5x - 2.2x

Startup Cost

$25K - $120K

Difficulty

4/5

How It Works

Sell contracts to property managers and businesses, then staff shifts with licensed guards. Track time and attendance, generate incident reports, invoice weekly or monthly, and manage recruiting and training. Cash flow management matters because payroll is weekly/biweekly while clients may pay net-30+. Scale comes from adding accounts, supervisors, and tighter scheduling systems.

Revenue Range

Low End

$500K

Typical

$2.0M

High End

$8.0M

Pros

+Recurring B2B contracts with clear renewal cycles
+Scales quickly by adding guards and supervisors
+Diverse verticals (construction, multifamily, retail, events)
+Upsell paths into mobile patrols, monitoring, and tech

Cons

-Thin margins and heavy payroll administration
-High turnover and constant recruiting pressure
-High liability and workers' comp exposure

Best For

Operators strong in recruiting, scheduling, compliance, and risk management

Operating Costs

Payroll is typically the dominant cost (often 70-85% of revenue), plus workers' comp, general liability, uniforms, background checks, training, dispatch/timekeeping software, and supervisor overhead.