MSP / IT Services Valuation
IT Services / MSP Business Valuation Calculator & Exit Planning Built for MSP Owners
We built one platform that tracks your it services / msp business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most IT Services / MSP Owners Have No Idea What Their Business is Actually Worth
Current IT Services / MSP Valuation Multiples (2026)
IT Services / MSP values are strong due to increased buyer demand from MSP consolidators, PE platforms, strategic acquirers. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives IT Services / MSP Business Value
Revenue and earnings are the two most influential factors in your it services / msp business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
MRR Percentage
80%+ MRR
Monthly Recurring Revenue is the primary valuation driver. MSPs are valued as multiples of MRR—high MRR percentage (70%+) commands premium multiples because revenue is predictable and contracted.
Project-heavy = lower value
Client Size
$1K+ MRR Avg
Contract length and auto-renewal terms impact value significantly. Multi-year agreements with auto-renewal create sticky revenue—month-to-month contracts are less valuable because clients can leave easily.
Micro-clients = high support cost
Tech Stack
Standardized
Net revenue retention over 100% shows you're expanding within existing clients. Growing MRR from existing clients through upsells and expansions is more valuable than replacing churned clients.
Non-standard = integration nightmare
Contract Terms
Annual+ Terms
Deep expertise in specific verticals (healthcare, legal, manufacturing) commands premiums. Vertical specialists understand compliance requirements and can charge more than generalist MSPs.
No contracts = at-will revenue
Security Services
Full Security Stack
Proper documentation in PSA/RMM tools shows operational maturity. ConnectWise, Datto, or similar platforms with documented processes demonstrate a transferable operation, not tribal knowledge.
Basic IT only = commoditized
Team Structure
Tiered Support
If you're still the tier 3 escalation, the business depends on you. Technical owners need to transition to strategy and sales—buyers discount heavily when the owner is the smartest tech in the room.
Owner-dependent = not transferable
How to Value an IT Services / MSP Business
The U.S. managed services provider (MSP) and IT services market includes over 40,000 companies generating approximately $200 billion in combined revenue. MSPs have become one of the most sought-after acquisition targets in the small business world due to their recurring monthly revenue model.
EBITDA or SDE multiples are the primary valuation methods for MSPs. IT services businesses typically sell for 3.0x to 6.0x SDE, or 5.0x to 10.0x EBITDA for larger managed services operations. These are among the highest multiples in small business, reflecting the industry's sticky, subscription-based revenue model.
Revenue multiples for MSPs generally range from 0.75x to 1.5x annual recurring revenue (ARR). However, the critical metric is monthly recurring revenue (MRR) — specifically, the percentage of total revenue that comes from managed services contracts versus one-time project or break-fix work. MSPs with 70%+ MRR consistently command premium multiples.
The unique valuation driver for MSPs is the MRR percentage and contract quality. Buyers pay top dollar for predictable, contracted monthly revenue — typically $100-$200 per user/endpoint under management. MSPs with multi-year contracts, low client churn (under 5% annually), and a standardized technology stack that can be managed efficiently at scale are exactly what acquirers seek. Companies still heavily reliant on break-fix or hourly project work receive significantly lower multiples.
MSP M&A activity has been exceptionally strong, driven by private equity roll-ups seeking to build regional and national platforms. Companies with cybersecurity and compliance capabilities (CMMC, HIPAA, SOC 2) attract particular interest. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do it services / msp businesses sell for?
Most it services / msp businesses sell for 3.0x – 4.5x SDE or 0.8x – 1.2x annual revenue. However, the range is wide. Companies with strong mrr percentage can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does mrr percentage affect my company's value?
MRR Percentage is one of the biggest value drivers for it services / msp businesses. Msp consolidators, pe platforms, strategic acquirers specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my it services / msp business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your mrr percentage, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys it services / msp businesses?
Common buyers include MSP consolidators, PE platforms, strategic acquirers, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for it services / msp businesses?
Most it services / msp businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (0.8x – 1.2x) are sometimes used as quick reference.
What's the fastest way to increase my it services / msp business value?
The fastest improvements typically come from: 1) Improving your mrr percentage to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.