Dealdoor

How much is my MSP worth?

Managed service providers are valued on EBITDA, with the multiple driven above all by the share of monthly recurring revenue. High-recurring, low-concentration MSPs reach the top of the 6-12× range. Use this UK guide, then Dealdoor’s free calculator, if you are weighing a sale in the £250k to £2m band.

Typical it managed services (msp) valuation multiple

6-12× EBITDA. EBITDA

What drives the value

  • % monthly recurring revenue (MRR)
  • Customer concentration
  • Contract length
  • Churn rate
  • Tech-stack quality
  • Documented processes

Worked example

£150,000 EBITDA at 8× ≈ £1,200,000.

Frequently asked questions

What's my MSP worth?

UK managed service providers typically sell at 6-12× EBITDA. The multiple tracks recurring revenue quality: high MRR, low churn and diversified clients support the top of the range, while project-heavy books sit lower.

Why does recurring revenue matter so much?

Buyers pay for predictable cash flow. Monthly recurring contracts are easier to underwrite than one-off projects, so a higher MRR share usually lifts the EBITDA multiple and shortens diligence on earnings sustainability.

How does customer concentration affect value?

Heavy reliance on one or two clients is a risk flag and often compresses the multiple. A broader client base, longer contracts and documented delivery processes make earnings feel safer and support a stronger MSP valuation.

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