The fire safety acquisition market in 2026.
What the current market looks like for valuations, buyers, and the forces shaping the sector.
Update, November 2026. The October 2026 Budget announced that the Business Asset Disposal Relief lifetime limit will fall from £1 million to £500,000 for qualifying disposals from the start of the 2027 to 2028 tax year in April 2027. Relief already claimed counts towards the limit, and the 18% rate does not change. For tax, the date of an unconditional contract normally counts as the date of disposal rather than completion, and specific rules will apply to contracts signed before the change that complete after it. Where this page quotes a different limit, rate or date, this note takes priority. Take advice on your own position. What the change means for owners.
Post-Grenfell compliance is reshaping the sector.
The Fire Safety Act 2021 and the Building Safety Act 2022 have transformed the regulatory environment. Fire risk assessments have been a legal duty since Oct 2006, and since Oct 2023 the responsible person must keep a full written record of the assessment. Since May 2022, the Fire Safety Order in England has also covered the structure, external walls and flat entrance doors of buildings with two or more homes.
Premises, facilities and equipment must be kept in efficient working order and in good repair, and the assessment reviewed regularly, so fire safety work comes back. Customers can specify BAFE third-party certification when they choose a provider, which is why BAFE SP203 certification, a strong recurring maintenance contract book and qualified fire alarm engineers matter to a buyer.
Active companies in fire service activities: About 2,710
Acquisitions by investor-backed groups in fire safety: 70% of UK fire and security deals in 2025
Groups backed by private equity, investment firms that buy companies to grow and sell on, have been steadily buying well-run regional fire safety businesses. Competition between buyers like these is what lifts the multiple, the number of years of profit a buyer pays, for well-prepared sellers.
Business sale tax relief, April 2026: Rose from 14% to 18% on qualifying gains
Business Asset Disposal Relief, which cuts the tax on selling a business you own and work in, rose in Apr 2026, so the window for qualifying fire safety business owners to complete a sale at the lower rate has now closed.
Private equity is buying fire safety businesses at scale.
Groups backed by private equity made 70% of UK fire and security acquisitions in 2025, up from 57% in 2024, according to Grant Thornton. These groups assemble regional businesses into integrated operations with shared compliance infrastructure, central back-office, and coordinated sales teams.
What a buyer will look for:
- Recurring maintenance contracts providing predictable compliance revenue
- BAFE SP203, SP101, and SP207 accreditations in place
- FIA membership and LPCB third-party certification
- Qualified fire alarm engineers and risk assessors
- Geographic density within their target regions
- Professional management and systems already working
For independent owners, it means there is more than one kind of buyer, and competition between them is what lifts a price.
How a valuation is worked out: an example.
To illustrate how valuations work in practice, here is an example, not a record of any one sale.
Example Fire Safety Business Profile
What tends to push the multiple up: BAFE SP203 alongside a recurring contract book. Multiple BAFE schemes (SP101, SP207) broaden the service offering. Low owner dependency means the business runs without the seller.
What tends to pull it down: Geographic spread across a wide area reduces route density. Heavy reliance on a single large client introduces concentration risk. A heavily domestic mix without commercial compliance contracts may limit the buyer pool.
Every business is different. This example illustrates the methodology, not a promise. Your valuation depends on your specific circumstances.
The BADR rate rise: why timing still matters.
Business Asset Disposal Relief (BADR) provides a reduced rate of Capital Gains Tax, the tax on the gain when you sell, on qualifying business disposals up to £1 million, falling to £500,000 from April 2027. The rate rose in stages, reaching 18 per cent in Apr 2026.
| Before Oct 2024 | Oct 2024 to Apr 2025 | Apr 2025 to Apr 2026 | From Apr 2026 | |
|---|---|---|---|---|
| BADR Rate | 10% | 10% | 14% | 18% |
| Tax on £500K gain | £50,000 | £50,000 | £70,000 | £90,000 |
| Tax on £1M gain | £100,000 | £100,000 | £140,000 | £180,000 |
These are simplified illustrations. Capital Gains Tax calculations depend on your personal circumstances. Always take advice from your accountant.
The rate change is legislation, not speculation. For a £500,000 gain, the difference between 14 per cent and 18 per cent is £20,000. For a £1 million gain, it is £40,000. That deadline passed in Apr 2026, so a sale completing today is taxed at the higher rate.
Find out what your fire safety business is worth.
Start with a free first conversation with Simon or Emily, in confidence. The paid Business Value & Exit Snapshot is a written, indicative view of value, and what to fix first.
Post-Grenfell compliance is reshaping the sector.
Groups backed by private equity, the investment firms that buy companies to grow and sell on, made 70% of UK fire and security acquisitions in 2025, up from 57% in 2024, according to Grant Thornton. Since May 2022, the Fire Safety Order in England has also covered the structure, external walls and flat entrance doors of buildings with two or more homes. For independent fire safety business owners, recurring contract books, BAFE registrations and qualified engineer teams are what a buyer looks at first.
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