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IT Services / MSPs (Managed Service Providers)

The 3 anchors. Don't leave the meeting without them.

1THE PRICE
3x–5x (small T&M-heavy or sub-$500K EBITDA MSPs; PE tuck-ins going as low as $300K EBITDA)
Typical deal: $3M
2THE LEVER
MRR/contracted recurring revenue %
Push this up, multiple goes up
3THE LANDMINE
Owner is lead engineer and primary client contact
Surface this in the first 15 min
SDE multiple
3x–5x (small T&M-heavy or sub-$500K EBITDA MSPs; PE tuck-ins going as low as $300K EBITDA)
EBITDA multiple
5x–8x for $500K–$2M EBITDA; 8x–12x+ for $2M+ EBITDA PE platform targets; median 6x–8x across all deals in 2025
Deal size range
$300K – $20M+
OPEN

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Three things to nail in the first 10 minutes.

  1. 1

    MSPs with $500K–$2M EBITDA trade at 5x–8x EBITDA; $2M+ EBITDA PE platform targets reach 8x–12x+.

  2. 2

    Small T&M-heavy or sub-$500K EBITDA MSPs trade at 3x–5x SDE.

  3. 3

    Revenue multiples of 0.8x–1.5x — MRR-heavy businesses with 80%+ recurring revenue toward the top.

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