Valuation guides, MRR analysis, and exit strategies for managed service providers, IT services firms, and cybersecurity businesses.
2.2x - 3.9x
SDE Multiple
3.0x
Typical Multiple
4-7 months
Time to Close
Strong
Buyer Demand
BizBuySell sold-transaction comps put IT services and MSP businesses at roughly 2.2x to 3.9x SDE, with 3.0x typical.
Managed-services contracts are the multiple driver: shops with 80%+ monthly recurring revenue trade at the top of the range, project shops at the bottom.
Contract transferability decides diligence: assignment clauses in client agreements should be reviewed before going to market.
Engineer retention is underwritten like rent: a tenured bench with documented runbooks supports the price, a shop where knowledge lives in the owner gets discounted.
Buyers include larger MSPs consolidating regions, private equity platforms, and individual operators with technical backgrounds using SBA financing.
Everything you need to understand this market, whether you're buying, selling, or advising.
MRR vs project mix, contract transferability, engineer retention, and the process.
Sold-comp SDE multiples, the managed-services premium, and what moves a shop inside the range.
Convert project revenue to contracts, document the stack, and reduce owner-held relationships.
Compliance-driven demand, certifications, and positioning a security practice for acquirers.
How recurring security contracts and vendor certifications drive the multiple.
Certifications, documented playbooks, and contract hygiene before going to market.
Whether you're buying, selling, or just exploring, we can help.