Cybersecurity Roll up

September 19, 2024

by a searcher from University of North Texas in Dallas, TX, USA

I am doing a roll up in Cybersecurity and am looking to connect with brokers who can help me find deal flow. I am willing to pay commissions. Also what are your guys thoughts on cybersecurity as a roll up ? How would you anticipate the deal flow to look like ? what kind of valuations do you think are fair in the 2024 market in this sector ?

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Reply by a searcher
in Oklahoma, USA

Hi Almeckdad, Cybersecurity is incredibly vast, covering areas like network security, cloud security, data protection, and incident response. Pinpointing a niche—such as MSSP, endpoint protection, or identity management—will help you target acquisition opportunities and scale more effectively. Partnering with a cybersecurity expert, like a CISSP, is critical. Cybersecurity is complex and requires deep knowledge of regulations and technology. Having someone skilled in the field will help with risk assessment and informed decision-making. For deal flow, focus on building relationships directly with founders and attending industry events like RSA, Black Hat, and DEF CON. Many opportunities are off-market, so personal connections will be key, though I currently don't have specific broker contacts to recommend. Valuations in 2024 for cybersecurity firms generally range from 6x-10x EBITDA, with SaaS-based or recurring revenue models commanding higher multiples. Firms with scalable tech or proprietary solutions will fetch premium valuations, while more traditional security businesses may see lower multiples, especially if growth is slower. Good luck!

Reply by a professional
from Mississippi State University in Austin, TX, USA

Happy to chat and see if there's alignment to work together: https://withsenzu.com/join-buyer-network/

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