IT Support & MSP Valuation
Discover what your IT support or managed services business could be worth today
Typical Valuation for a IT Support / MSP Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 4.0-7.0× |
| EBITDA Margin | 20-35% |
Market Overview
IT support and MSP businesses typically sell for 4.0-7.0× EBITDA in the UK market. The range reflects recurring revenue percentage, contract length, technical capability, and automation. MSPs with strong recurring contracts command premium multiples (5.5-7.0×) due to predictable monthly revenue and client stickiness, while break-fix IT support trades lower (4.0-4.5×). Key differentiators include monthly recurring revenue (MRR) percentage (80%+ ideal), contract terms (12-36 months), client retention (90%+), technical team quality (Microsoft/VMware certifications), modern stack (cloud, security, backup), and PSA/RMM tools. Consolidators and PE-backed platforms actively acquire quality MSPs. Cyber security capabilities increasingly essential.
How to Value a IT Support / MSP Business
The standard methodology for valuing a it support / msp business in the UK is EBITDA-based. A buyer will calculate your Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and apply a multiple based on sector benchmarks, business quality, and growth prospects. For it support / msp businesses, that multiple typically ranges from 4.0-7.0×.
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