How much does a Security Guard Company cost to buy?

A typical Security Guard Company sells for 1.5x to 2.2x seller's discretionary earnings. With estimated SDE of $200K, expect to pay roughly $300K to $440K before adjustments for assets, debt, growth, and local market quality.

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

Bottom line

Worth studying, but do not buy without strong local proof.

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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Acquisition score

Fair

Avg Revenue

$2.0M

Profit Margin

10%

Acquisition Multiple

1.5x - 2.2x

Startup Cost

$25K - $120K

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

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 561612 · Security Guards and Patrol Services

Deals tracked

8 in last 24 mo

Median loan

$667K

$190K–$1.5M p25/p75

Implied deal size

$784K

median · ~85% LTV

Charge-off rate

—

not enough resolved loans

Deal Size Distribution

<$150K

$150K–500K

$500K–1M

$1M–2M

>$2M

Financing Profile

Median rate

9.43%

13% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

42.5

supported per deal

Top lenders in this space

Fulton Bank, National Association2

First Internet Bank of Indiana2

Valliance Bank2

Newtek Small Business Finance, Inc.1

FirstBank1

Where deals happen

CA4

MD3

CT2

IN2

NV2

OK2

CO1

TX1

OH1

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Mar 2026	CA	$1.1M	$1.3M	64	—
Jan 2026	MD	$1.2M	$1.4M	285	—
Jan 2026	MD	$500K	$588K	33	—
Aug 2025	CT	$4.2M	$5.0M	300	—
Jul 2025	CA	$2.8M	$3.2M	50	—
Jul 2025	IN	$190K	$224K	100	—
Jun 2025	CO	$4.1M	$4.8M	203	—
May 2025	TX	$2.4M	$2.8M	80	—
Dec 2023	NV	$100K	$118K	3	—
Dec 2023	NV	$2.1M	$2.5M	3	—

Volume rank #275/544Deal-size rank #287/544p90 loan: $2.8MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

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.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-5331/mo

after debt service

Deal price — $2.0M

Range: $2.0M (1.5×) to $6.4M (2.2×+)

Down payment — 15% ($300K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 9.50%

SBA median for this category: 9.4%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$300K

15% equity injection

Loan amount

$1.7M

85% SBA-financed

Monthly payment

$22K/mo

$940K total interest

Monthly profit

$17K/mo

at 10% margin

Monthly cash flow after debt service

$-5331/mo

Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.