IT managed services
MSP and IT support valuations, independently prepared.
James Nelson
Founder & M&A Valuation Director, The Business Valuers
17 years in UK business brokerage and valuation. 1,000+ SME valuations completed. Former Head of Corporate Sales at Christie & Co.
UK IT managed service providers typically sell for 3× – 8× normalised EBITDA, with the top of the range earned by contracted monthly recurring revenue across a spread client base and low seat churn. The bottom applies to owner-operated support businesses trading largely on time and materials.
A written, evidenced valuation of an IT managed service provider — recurring contract income separated from project and hardware work, churn and engineer dependency priced honestly. Fixed fee from £495, delivered in three working days.
Independent.We don't sell businesses. No success fee.
- 1,000+ UK business valuations
- 17 years of brokering & valuing experience
- Fixed fee from £495 — no hourly billing
- Report delivered in 3 working days
Fixed fee from £495
Written report in 3 working days. Quote back within the hour, no obligation.
1,000+ UK valuations completed. We don't sell businesses, so there's no incentive to move the figure.
What the figure usually turns on
Monthly recurring revenue and its quality
Contracted per-seat support is the core of MSP value. Rolling monthly agreements are worth less than twelve- to thirty-six-month terms with uplift clauses, even at the same revenue.
Project, hardware and licence resale mix
Hardware and licence pass-through inflates turnover at thin margin. We strip it out and value gross profit, because a buyer will.
Seat churn and client concentration
Seat count movement over three years is the clearest evidence of stickiness. One client above roughly 20% of gross profit will attract a discount or a deferred structure.
Engineer capacity and owner involvement
If the owner is still the senior engineer or the main account relationship, the earnings need adjusting for replacement cost and the multiple reflects transition risk.
Stack standardisation and documentation
A standardised toolset, documented estate and clean ticketing data materially improve buyer confidence. Legacy, bespoke or undocumented environments do the opposite.
Typical benchmarks
Indicative UK ranges only. Contract terms, churn, gross margin and owner dependence move these figures substantially — your report is built from your own numbers and comparable transactions.
See our UK SME valuation multiples guide — every sector, what earns the top of the range
Recurring revenue is the whole argument
Consolidators buying MSPs are paying for predictable contracted income. The valuation therefore turns on how much of your revenue survives a change of ownership and for how long it is contracted.
We evidence the recurring base, strip out pass-through revenue, test churn and state exactly how each affected the figure.
Independent, with no onward mandate
We don't sell businesses and take no success fee. There is no listing to win, so nothing inflates the number.
The reports are used for sale preparation, acquisitions, share issues, EMI schemes and HMRC submissions.
This is for you if…
- —You're preparing to sell an MSP or IT support business.
- —You're acquiring an MSP and want the recurring base tested.
- —You need a share valuation for EMI options or an internal transfer.
- —You've had an approach from a consolidator and want it checked.
Want the number for your business?
Two quick questions and we'll come back with your fixed fee within the hour.
Fixed fee from £495
Written report in 3 working days. Quote back within the hour, no obligation.
1,000+ UK valuations completed. We don't sell businesses, so there's no incentive to move the figure.
Request an MSP valuation.
An independent, fully evidenced figure in three working days. Fixed fee from £495.
Independent.We don't sell businesses. No success fee.
- 1,000+ UK business valuations
- 17 years of brokering & valuing experience
- Fixed fee from £495 — no hourly billing
- Report delivered in 3 working days