ExitValue.ai

What Is Your MSP Worth?

Sub-$3M EBITDA MSPs typically trade 4-9x. At $3-15M EBITDA the range pushes to 6-11x. Premium MSPs with strong recurring MRR and a built-in security stack command 10-14x.

What's your MSP actually worth?

The median is just the midpoint — your MSP number depends on margins, growth, customer concentration, and owner-dependence. Get your specific figure in 2 minutes.

  • ✓Sellability score with 5-driver breakdown and lift estimates
  • ✓Named comparable M&A transactions in your sub-vertical
  • ✓AI-written analysis grounded in your specific inputs
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Real MSP M&A data from our 25,592-transaction database, refreshed nightly from SEC filings and verified press releases. Run a valuation to see your business priced at current market multiples.

How MSPs Are Actually Valued

Managed services valuation is one of the most spread-out ranges I see in lower-middle-market M&A. Two MSPs with identical $2M EBITDA can trade $8M apart depending on MRR mix, security attach, vertical concentration, and tooling discipline. A buyer is not paying for last year's P&L — they're paying for the durability of the recurring book.

The Three Tiers Buyers Actually Use

Sub-$3M EBITDA (most independent MSPs):platform-tier earnings multiples. The wide range reflects quality. A break-fix-heavy shop with project revenue spikes lands at 4-5x. A clean managed-services book with 65%+ MRR, documented runbooks, and no founder dependency lands at 7-9x. The PE roll-ups — New Charter Technologies, Evergreen Services Group, Thrive, Right of Boom — have public buy-boxes around this range and they will not stretch for messy financials.

$3-15M EBITDA platform candidates: platform-tier earnings multiples. This is where you stop being an add-on and start being a platform investment. Buyers like ConnectWise (TA Associates), Pax8, and the various sponsored consolidators compete here. Multiples reflect the strategic value of geography, vertical specialization, and team density.

Premium platforms with cybersecurity stack and 70%+ MRR:platform-tier earnings multiples. To get here you need a real managed-security offering — SentinelOne, Huntress, or CrowdStrike integrated into your stack with documented SOC processes — plus disciplined client onboarding, audited gross retention above 95%, and net revenue retention above 105%. These are the deals that make headlines.

The Metrics That Move Multiples

MRR as a percentage of total revenue.This is the single most important number on a buyer's diligence checklist. Below 50% MRR and you're a project shop with a recurring tail. Above 70% and you're a recurring business with project upside. The multiple difference between those two stories is enormous.

Per-seat MRR.Buyers benchmark every MSP against the Service Leadership Index data — the best operators run $200-300+ per seat per month all-in. If you're billing $90/seat on a Microsoft 365 reseller motion, the buyer assumes you'll get squeezed by direct competition and prices accordingly.

Gross logo retention.The institutional bar is 90%+ annually. Below 85% and buyers question whether your churn is structural or product-related. Above 95% with documented QBRs and net promoter data, you're defensibly sticky and the multiple reflects it.

Security stack depth. EDR, MDR, identity, email security, backup, and a real 24x7 SOC (whether in-house or partnered with Huntress / Arctic Wolf / Blackpoint) collectively create a moat. MSPs running just RMM + AV with no detection-and-response capability are getting disqualified from the premium tier entirely.

Vertical specialization.A generalist MSP serving 200 random SMBs trades worse than a specialist serving 80 dental practices, 60 law firms, or 50 manufacturing clients. The specialist has pricing power, repeatable onboarding, and lower CAC — all things the buyer is underwriting.

What Drags Multiples Down

Single-tech-stack lock-in. All-Datto or all-Kaseya MSPs trade at a discount because the buyer inherits vendor concentration risk. Multi-vendor stacks (ConnectWise + N-able or NinjaOne + Auvik) signal operational maturity.

Founder-as-technician. If the owner is still the senior engineer answering tier-3 escalations, the buyer is paying for an asset that walks out at close. Practices with a real service-delivery manager and documented escalation paths trade meaningfully higher.

Client concentration. Top 3 clients above a percent-of-revenue figure is a yellow flag. Above 40% and buyers either kill the deal or apply a 1-2 turn discount with significant escrow.

Hardware reseller revenue.If 30%+ of revenue is pass-through hardware sales, the buyer strips that revenue out of the multiple calculation entirely — they're only paying for managed-services EBITDA. Make sure your books separate the two cleanly.

Public Comps and Active Buyers

On the public side, ScanSource (SCSC) and CDW (CDW) trade in the platform-tier earnings multiples range as distribution-heavy comps. They're not direct comps for a managed-services-pure MSP, but they anchor the lower bound of the public market.

On the private side, the active acquirers right now are New Charter Technologies, Evergreen Services Group, Thrive, Right of Boom, the various Eden Data / Pax8-adjacent platforms, plus dozens of sponsored regional roll-ups. ConnectWise (TA Associates) is also acquiring. This is a buyer's market for sellers under $1M EBITDA and a seller's market for clean platforms above $5M EBITDA.

Estimate your MSP business value

12-input M&A-grade workup with sellability score, named comparable deals, and AI-written commentary. 2 minutes.

  • ✓Sellability score with 5-driver breakdown and lift estimates
  • ✓Named comparable M&A transactions in your sub-vertical
  • ✓AI-written analysis grounded in your specific inputs
Run my valuation analysis →

Frequently Asked Questions

What multiple do MSPs sell for in 2026?

Sub-$3M EBITDA MSPs typically sell for platform-tier earnings multiples. $3-15M EBITDA platforms trade 6-11x. Premium MSPs with strong recurring MRR (70%+), a managed-security stack, and 95%+ gross retention command 10-14x. The wide ranges reflect MRR mix, vertical specialization, and founder dependency more than absolute size.

Does MRR mix actually change my MSP's valuation?

More than any other single factor. A $2M EBITDA MSP with 70% MRR easily trades at 8x. The same EBITDA with 40% MRR and the rest in project / hardware revenue trades at 4-5x. Buyers are pricing the durability of recurring revenue, not the trailing P&L.

Who is buying MSPs right now?

PE-backed roll-ups dominate: New Charter Technologies, Evergreen Services Group, Thrive, Right of Boom, ConnectWise (TA Associates), and dozens of sponsored regional platforms. Distribution players like Pax8 are also active. Strategic buyers exist but PE drives the M&A volume in this space.

How does cybersecurity capability affect MSP valuation?

It's become a gate, not just an upgrade. MSPs without an EDR/MDR offering (SentinelOne, Huntress, CrowdStrike) and a credible SOC story are being disqualified from the premium tier (10-14x) entirely. Buyers see cyber as a moat against direct vendor competition and price accordingly.

What client concentration is acceptable to buyers?

Top 3 clients under a percent-of-revenue figure is clean. 20-25% is fine with an explanation. Above 25% triggers escrow conversations and discounts. Above 40% concentration, most institutional buyers walk or apply a 1-2 turn multiple haircut.

Should I sell now or wait until I hit $5M EBITDA?

Depends on growth trajectory and risk tolerance. Sub-$3M MSPs trade 4-9x; clean $5M+ EBITDA MSPs trade 8-12x. The math favors waiting if you're growing 20%+ annually and can hold your retention metrics. If growth is flat or you're burning out as the senior tech, taking a roll-up offer at 6-7x today often beats a slower future exit.

How long does an MSP sale take to close?

From engaging an advisor to close, expect 6-9 months. PE roll-up add-ons can close in 4-6 months because the buyer has standardized diligence and integration playbooks. Platform deals with sponsored equity rolls take longer (8-12 months) because the financing and management equity structure is more complex.

How is a MSP valued?

A MSP is valued by benchmarking against comparable completed M&A transactions and then adjusting for the specific business. Owner-operator businesses are typically priced on an earnings or seller-discretionary-earnings basis, while businesses at platform scale shift toward institutional earnings-multiple methodology. ExitValue.ai selects the methodology the comparable deal set actually used and adjusts for margin quality, growth, owner dependency, customer concentration, and recurring-revenue mix.

What drives MSP valuation?

The biggest value levers are recurring or repeat revenue, owner independence (the business runs without the founder), customer diversification (no single client dominates), a credible growth trajectory, and operating-margin quality relative to peers. Buyers pay a premium when these are strong and discount heavily when they are weak.

How many MSP M&A deals are tracked?

ExitValue.ai's database holds 25,592 verified M&A transactions across 107 sub-verticals, sourced from SEC filings, EDGAR 8-K/S-4 documents, and verified press releases and refreshed daily. Disclosed MSP transactions are surfaced as the median multiple above.

Who buys a MSP?

A MSP is most often acquired by private-equity platforms and strategic acquirers. Private-equity platforms typically pursue roll-up consolidation; strategic acquirers are larger operators expanding in the same space.

In-Depth Valuation Guides

How to Value an IT Services Business→ Read guideSDE vs EBITDA: Which One Values Your Business?→ Read guide

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IT Services ValuationCybersecurity ValuationSaaS Software ValuationConsulting Valuation
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