IT & Managed Services (MSP)

Sell Your IT / MSP Business Into the Country’s Most PE-Capitalized Service Category

Managed service providers (MSPs) and IT services businesses have over $400B in PE dry powder targeting them. Premium MSPs with strong recurring revenue command 12–14x EBITDA — among the highest multiples of any service category. For owners with $1M+ EBITDA and strong contract bases, this is one of the most lucrative seller’s markets in business services.

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How It Works

200+

Deals Sold

$800M+

Volume Sold

Ranked by Axial

States Served

The IT & Managed Services Market

Why MSPs and IT Services Are the Most PE-Hungry Service Category

MSPs combine the recurring revenue economics of subscription software with the technical-services demand of mission-critical infrastructure. PE has identified them as one of the most attractive consolidation categories: $400B+ in dry powder targets technology services, and platform-quality MSPs command premium multiples that surprise most owners.

$400B+

PE dry powder targeting tech services

Both PE firms and larger MSPs are aggressively acquiring smaller providers. Sustained capital availability drives continued strong demand.

4x–14x

EBITDA multiples by size

Small MSPs (under $1M EBITDA): 4x. Mid-sized ($1M–$5M EBITDA): 6x–8x. Premium / platform-quality ($5M+ EBITDA): 12x–14x.

70%+

Premium RMR threshold

Top-tier MSPs achieve 70%+ recurring monthly revenue. That predictability is what drives the highest multiples in the category.

25%–35%

Typical platform-quality EBITDA margins

Premium MSPs run 25%–35% EBITDA margins with 90%+ customer retention and 100+ clients with no customer above 5%.

MSP & IT Services Economics

Platform-Ready MSPs Command 12x–14x EBITDA

MSP multiples have one of the widest ranges of any service category. The gap between tuck-in pricing (~4x EBITDA) and platform pricing (~12x–14x EBITDA) is enormous. Five operational characteristics separate platform-ready businesses from tuck-ins.

Recurring revenue, customer diversification, and contract length drive premiums

Premium operations achieving highest valuations demonstrate: 70%+ recurring revenue from managed-service contracts, 100+ clients with no single customer above 5%, multi-year agreements with auto-renewal, experienced delivery management, 25%–35% EBITDA margins, and 90%+ customer retention. Hit all five and you’re a platform-quality asset at 12x–14x EBITDA. Miss most and you’re a tuck-in at 4x–6x.

Multiples could compress when interest rates normalize or when the PE consolidation wave saturates. We’re not financial advisors — talk to your CPA and M&A counsel.

6x–14x

EBITDA multiples for quality MSPs in 2025

Who’s Buying IT & Managed Services Businesses

MSP Buyers Span PE Roll-Ups, Strategics, and Search Funds

MSP buyers are unusually competitive across three tiers. Four categories of buyer compete for quality deals:

National PE-backed MSP platforms

Dozens of PE-backed national MSP platforms (New Charter Technologies, Evergreen Services Group, Pax8, Coretelligent, Thrive, Ntiva, Logically, and many more) aggressively acquire. These platforms pay the highest multiples for platform-ready assets.

Larger MSPs acquiring smaller MSPs

Mid-sized MSPs ($10M+ EBITDA) regularly acquire smaller MSPs to grow toward platform scale themselves. Often competitive on price and faster to close than national PE platforms.

Strategic acquirers (software / telecom / hardware)

Microsoft partners, Cisco partners, telecom companies, and major hardware distributors occasionally acquire MSPs strategically. Less common but can pay premium multiples for the right asset.

Search funds and independent sponsors

MSPs have become one of the most popular search-fund target categories. Strong recurring revenue economics make them ideal for SBA-financed individual buyers up to ~$10M deal size.

What Drives Value

What Buyers Look For in MSP Acquisitions

Five operational levers move MSP multiples by enormous amounts. Working these before going to market often adds 4–6 turns of EBITDA in value.

Recurring revenue (RMR) percentageSingle biggest multiple driver. Below 50% RMR = tuck-in pricing. 70%+ RMR = platform territory. Multi-year contracts with auto-renewal beat month-to-month agreements.

Customer diversification100+ clients with no single customer above 5% of revenue is the platform standard. High customer concentration (top customer over 15%) heavily discounts multiples.

Customer retention & LTVAbove 90% annual retention supports premium multiples. Buyers run LTV/CAC analysis on every deal — high LTV with low CAC commands premium pricing.

EBITDA scale & margin profileAbove $1M EBITDA you become attractive to PE; above $3M EBITDA you’re a clear platform target. Above $5M with 25%+ margins you’re at the top of the multiple range.

Service-line mix & cybersecurity capabilityPure managed services trades at strong multiples. Adding cybersecurity, compliance, or cloud-services capability often commands a premium of 1–3 turns above pure infrastructure MSPs.

Tech stack & delivery scalabilityDocumented PSA, RMM, ticketing, and SOC tooling support scalability arguments to buyers. Tech-mature MSPs command premium multiples.

The Process

How We Sell Your IT / MSP Business

From your first valuation call to the wire hitting your account, we handle every stage of the exit. A typical transaction closes in 4–9 months. You focus on running the business; we run the deal.

Free Business Valuation

We benchmark your financials against current IT / MSP comparables and active buyer demand to give you a real, defensible valuation — at no cost and no obligation.

Confidential Marketing

We approach the IT / MSP buyers most likely to bid quickly first — typically PE platforms and strategic acquirers active in your category — then broaden the process.

Buyer Competition

We bring multiple qualified offers to the table — PE platforms, strategics, search funds, SBA buyers — and negotiate them against each other to drive price and terms.

Due Diligence & Close

We coordinate with your CPA, attorney, and the buyer’s diligence team to keep momentum and prevent the deal from drifting. Closings typically happen 60–120 days after LOI.

Recent Market Activity

MSP & IT Services Deal Activity Stayed at Record Levels in 2025

Across all buyer categories, MSP and IT-services deal volume remained at record levels through 2024 and 2025 — with platform formation continuing and PE share of activity growing.

National MSP platforms continued acquiring

New Charter Technologies, Evergreen Services Group, Coretelligent, Ntiva, Thrive, and dozens of other national PE-backed MSP platforms continued aggressive add-on activity through 2025.

Cybersecurity / MSSP demand

MSPs with cybersecurity capability (or pure-play MSSPs) drew premium bids from both PE platforms and strategic acquirers throughout 2024–2025.

Search-fund & SBA-backed activity

Search funds and SBA-leveraged individual buyers remained highly active in the $1M–$5M EBITDA MSP range, often paying competitive multiples for businesses with strong RMR.

Common Questions

IT / MSP Sellers Ask Us

What is my MSP actually worth?

Multiple range is wider than almost any other category. Tuck-ins under $1M EBITDA: 4x–6x. Mid-tier $1M–$5M EBITDA: 6x–8x. Platform-quality $5M+ EBITDA with 70%+ RMR and 100+ diversified clients: 12x–14x. RMR percentage, customer diversification, retention, and EBITDA scale are the biggest variables. Get a free valuation.

How do I move my MSP from tuck-in to platform-quality multiples?

Five things: (1) push RMR above 70% by converting customers to all-in managed services; (2) diversify customer base to 100+ clients with no one above 5%; (3) achieve 90%+ retention with documented onboarding/QBR processes; (4) add cybersecurity or compliance capability; (5) build scalable delivery on standardized PSA/RMM/SOC tooling. Done right, these changes can shift you from 4x–6x to 10x+ over 18–24 months.

Is cybersecurity capability really worth a premium?

Yes — meaningfully. MSPs with cybersecurity or compliance capability typically trade at 1–3 turns of EBITDA above pure infrastructure MSPs. Pure-play MSSPs (managed security service providers) trade even higher. The category is growing 20%+ annually, and PE buyers pay aggressive premiums for cyber-capable MSPs.

How long does it take to sell a MSP business?

Most transactions close within 4–9 months from start to wire. Smaller SBA-financed deals can move faster (3–5 months). Larger PE-led deals with quality-of-earnings reports and committee approvals can take 6–10 months. We give you a realistic timeline at the valuation call.

Will my employees, customers, or competitors find out I’m selling?

No. We never publish your business name. Every prospective buyer signs an NDA before seeing identifying details, and we vet financial qualifications before granting access to your data room.

Do I have to stay on after the sale?

Almost always for some transition period — 3 to 12 months is typical. Search-fund and PE buyers often want longer because they’re acquiring the relationships and knowledge as much as the assets. Shorter transitions are possible when the operation is genuinely turnkey.

What does Business Exits charge?

We work on a success-fee model — we get paid only when your deal closes. There are no upfront retainers and the valuation is free.

Our Team

Brokers Built From the Operator’s Side of the Table

Our brokers are former business owners themselves. That’s why the process is built around the things that actually matter to sellers — net proceeds, confidentiality, and not having the deal drift for a year.

Business Exits Team

Find Out What Your IT / MSP Business Is Worth

Takes 15 minutes. No obligation. Just an honest number, benchmarked against current buyer demand and recent comparable transactions in your industry.

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Market Data Sources

MSP and IT services market data from Aventis Advisors, Peak Value MSP, N2M Capital Advisors, and Solganick (2025). EBITDA multiples from First Page Sage and industry-specific M&A research. Active acquirer examples are drawn from publicly disclosed transactions and firm marketing materials and do not imply an exclusive relationship with Business Exits. We are not tax or legal advisors; consult a CPA and attorney before any transaction.