IT Managed Service Provider (MSP) Valuation Tool

MSPs are trading at premium multiples due to high recurring revenue. Determine your 2026 market value range before speaking to a broker.

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Industry
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Financials
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Attributes
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Valuation

What industry is the business in?

Valuation multiples vary wildly by sector. We track 2026 M&A benchmark data.

M&A Outlook for IT Services & MSPs

Industry Insight: IT Services & MSPs

MSPs are one of the hottest sectors for M&A in 2026. Buyers will dissect your Monthly Recurring Revenue (MRR) versus your project-based hardware sales. If your MRR accounts for over 70% of your total revenue, and your customer churn is under 5%, you can command a multiple at the absolute top of the market range.

Owner Dependency Kills Deals

Across all industries, including it services & msps, if the business cannot run without the owner present, it is considered highly risky. Private equity firms and corporate buyers will drastically reduce their offers (or walk away entirely) if you hold all the client relationships and operational knowledge.

Asset Sale vs. Stock Sale

When structuring a deal, buyers heavily prefer Asset Sales because they avoid the unknown legal liabilities of the past company and get to step-up the tax basis of the assets for depreciation. Sellers usually prefer Stock Sales because the proceeds are taxed at the much lower long-term capital gains rate. Prepare to negotiate this critical point during your transaction.