MSP Multiples

July 03, 2024
by a searcher from University of Toronto in Toronto, ON, Canada
Hello Searchfunder community! I'm based in Canada and researching the MSP space. Does anyone have some recent indications of multiples? Below are a few data points from various sources, and hoping for additional validation based on recent transactions.
Source 1:
Annual EBITDA $250k - $1 million: Typically results in a valuation of 4-5x annual EBITDA.
Annual EBITDA $1 million - $2 million: Typically results in a valuation of 5-6x annual EBITDA.
Annual EBITDA $2 million - $5 million: Typically results in a valuation of 6-8x annual EBITDA1.
Source 2:
3-6X ARR
Source 3:
8-10X EBITDA
Thank you to anyone who can shed light. Cheers, Mei
from Embry in Orlando, FL, USA
from University of Toronto in Toronto, ON, Canada