Home » MSP Valuation Calculator
One of the most common questions we see posed from owners of MSPs who are considering selling
their businesses is what valuation they can expect. This is a challenging question to answer without
knowing more specifics about the MSP in question, which is why we offer a Free Evaluation. But for
those MSP owners who are in the initial stages of considering the potential of exiting, and are only
wanting a general idea about the value they could expect from selling, we have created an MSP Valuation Calculator:
One of the main factors influencing an MSP’s valuation is the yearly revenue.
More revenue means that buyers are usually willing to pay a larger multiple of earnings .
Having a higher level of earnings as a percentage of yearly revenue results in a larger valuation.
Having a high degree of revenues be monthly recurring revenue achieves a higher valuation.
Buyers typically pay less when revenues are from projects or break/fix.
A primary market has greater than 5m population. a secondary market has 2m to 5m population,
and a tertiary market has less than 2m population. The larger the market, the better the valuation.
Buyers are typically willing to offer more for MSPs that have a growth story
over those whose revenues have been flat or declining in recent years.
Please note: this calculator represents only an approximation based on some key factors, while the
actual market value will depend on many other factors and buyers’ preferences.
At The Host Broker, we help owners of MSPs of all sizes and in all geographies find good homes for their
customers and employees. Sellers who work with us typically get multiple offers to choose from, which
helps ensure they’re getting good value for their businesses.
If you are interested in discussing whether selling your MSP is the right move for your career and
personal situation, please contact us to discuss further.