Why Are So Many Security Guard Companies for Sale?

July 15, 2025

by a searcher from University of Nebraska - Lincoln in Denver, CO, USA

I’ve noticed a large number of security guard businesses listed for sale—especially in Colorado—and I’m curious if there’s something specific driving this trend. Are these businesses generally solid, or is there a common issue (low margins, staffing headaches, regulatory changes, etc.) that makes them less attractive? I’m reminded of the recent wave of liquor store owners selling after Colorado laws changed to allow beer and wine sales in grocery stores. Could something similar be going on in the security industry? Would appreciate any insight from folks who’ve looked into this space or owned a company in the sector.

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Reply by a searcher
from San Diego State University in Denver, CO, USA

I acquired a security guard company in Colorado two years ago and I’m familiar with the ones that have sold since then. There are no new regulations that are problematic, and no new macro conditions affecting the space (except maybe the rising insurance costs). The issue is that margins are so notoriously slim that it’s difficult to scale to a size that you can afford office staff to help the biz. Another margin problem is there isn’t enough money to attract good guard talent, which causes high customer turnover. Another cause of customer turn is a lack of moat, so every former guard is starting a company with a buddy and offering outrageously low prices because they have no overhead. Everyone seems to be in a race to the bottom of the pricing. Most of these larger sellable operations (even the biggest ones) are run with a skeleton crew, and mostly at night — so my theory is that these owner/operators are just burnt out and want to be awake during daylight for a change.

Reply by a searcher
from Tulane University in New Orleans, LA, USA

Security companies have small margins, are hard to hire for, have a very high turnover rate for employees, are contracted based on the lowest bidder(shrinking margins even more), have increasing insurance rates, etc. I am happy to jump on a call with you. I did security work and law enforcement training for 15 years.

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