What SDE Multiple Do Security & Alarm Businesses Sell For in 2026?
Security and alarm businesses are among the highest-multiple categories in the small-business M&A market. In 2026, expect 4.5x–7.5x SDE for smaller operators; larger platforms with strong recurring monthly revenue (RMR) can command 6.0x–10.0x EBITDA.
- SDE Multiple (Smaller): 4.5x–7.5x for independent operators
- EBITDA Multiple (Platform): 6.0x–10.0x for $5M+ revenue businesses
- Sweet Spot Revenue: $1M–$10M annually with 60%+ RMR
- Timeline: 5–8 months
How Much Are Security Alarm Companies Worth Today?
The magic number in security is recurring monthly revenue (RMR). Buyers—ADT, Brinks Home, Vivint, Vector Security, and roll-up platforms—pay a premium for sticky, predictable revenue. A $2M revenue alarm company with 70% RMR is worth far more than one with 40% RMR, even if net profit is identical.
Valuation formula: RMR × 12 months × Multiple. If you have $150K monthly recurring revenue at a 7.0x SDE multiple, that's roughly $12.6M in enterprise value. For detailed insights, check our security and alarm valuation resource.
Buyer Demand and Timeline in 2026
Strategic buyers remain hungry. ADT, Brinks, and Vivint are consolidating regional operators. Roll-up platforms like Pye-Barker and Security Networks buy 3–5 smaller players annually. Deals close in 5–8 months if RMR is clear and customer contracts are transferable. Avoid long diligence surprises by having clean accounting, current customer agreements, and documented churn data. Learn more in our buyer guide for security operators.
I brokered a $3.2M revenue security and alarm company in the Southeast with $180K in monthly recurring revenue. At 6.2x SDE, a strategic buyer closed in under 6 months—strong customer retention and a documented pricing roadmap were the deciding factors.
Security and alarm operations are coveted by buyers who value recurring revenue. If your customer base is solid and your churn is low, you're sitting on a valuable asset.
