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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