Hi everyone,

I had a broker share an expected multiple for selling off the recurring revenue of a Security Monitoring service and I wanted to pressure test. Does anyone have expected multiples they've seen for recurring revenue of a security business? (Alarm and video security not physical security)

I'm not under LOI with them yet but we're strongly evaluating making the offer. The broker stated they had an offer for $1.5m on ~500k in RMR from security monitoring so a 3x multiple (mix of residential and commercial). The RMR is a small portion of their revenue and this would be a carve-out from the existing installation business.

It's hard to pull out this nuance in the deal stats available here on Searchfunder so wanted to poll the community to find someone that has done deals in this space. Appreciate the help!