I am looking at a Managed Service Provider (MSP) for a potential acquisition and I am seeking some feedback and any reaction froom those who have transacted or heavily looked at businesses in this space. Some contours around the deal itself is below:
- ~$1m in SDE at about 30% sde margins.
- Clients are smb's primarily focused in professional services and construction
- Service offerings are managed services, SaaS, managed security, Backup, consulting, and hardware/software sales
- 70% of revenue is recurring
I am continuously looking to educate myself about this space and what a good acquisition target looks like. I will be using an SBA 7(a) loan as well, and believe a valuation should be around 4-5x, but would like some context on this as well.
I would love to get feedback and or a reaction to the above. Any and all feedback is extremely helpful. Thank you in advance!
If anyone would like to chat further about this space, my email is --@----.com
Looking at an MSP deal and seeking feedback
![](https://55550cf88fb9105859d2-ecc273435fde99d2e690dfef78341117.ssl.cf5.rackcdn.com/img/defaultprofile.png)
by a searcher from Washington University in St. Louis
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