What is my MSP worth?

Most MSP transactions are priced as a multiple of adjusted EBITDA, typically in the 4-8x range. The specific multiple depends on business size, growth rate, recurring revenue mix, customer retention, and customer concentration. Larger MSPs (over $1M EBITDA) trade at higher multiples than smaller ones. High recurring revenue (75%+), steady growth (10%+ CAGR), low churn (under 5%), and diversified customer base all support higher multiples.

What EBITDA multiples do MSPs sell for?

MSPs with less than $500K EBITDA typically trade at 3.5-5.5x. MSPs with $500K to $1M EBITDA trade at 5.5-7x. MSPs with $1M to $2M EBITDA trade at 6.5-8x. MSPs with $2M to $5M EBITDA trade at 7.5-9x. MSPs with $5M+ EBITDA trade at 8.5-11x or higher at the platform tier.

How is MSP EBITDA calculated for a valuation?

Buyers use adjusted EBITDA, which normalizes owner compensation to a market rate (approximately $200-300K for CEOs of MSPs under $5M revenue), adds back one-time expenses and personal costs run through the business, and reflects the trailing twelve-month (TTM) period.

MSP Valuations by Evergreen — Free MSP Valuation Calculator

Confidential · Instant · No Obligation

What is your MSP worth?

A free, confidential MSP valuation calculator built on the same framework Evergreen has used across 130+ MSP acquisitions. Ten questions, one number, no waiting.

Start My Valuation Takes under 4 minutes · Results delivered instantly

Indicative Valuation Sample MSP, North America

TTM Revenue$6.0M

TTM EBITDA$1.1M

Recurring %65%

Growth (3-yr CAGR)8%

Estimated Valuation

$8.0M

~7.2x EBITDA

Acquisitions

130+

MSP acquisitions

Founded

2017

Decentralized holding company

MSP Focus

Long-Term

Permanent capital, no flip strategy

San Francisco

Global team, MSPs in 4 regions

Confidential Valuation

Tell us about your business.

Your answers are never sold or shared outside of Evergreen.

Question 1 of 10

Financials

— Question 01 / Financials

What is your trailing twelve-month (TTM) revenue?

Enter in millions, e.g. 8.2 for $8.2M

$ M

— Question 02 / Financials

What has your revenue growth rate been over the last three years?

Approximate compound annual growth rate (CAGR). Calculation: (Current Revenue / Revenue 3 Years Ago)^(1/3) - 1

— Question 03 / Financials

What is your TTM EBITDA?

Make sure EBITDA is burdened for a market level of salary for the owner/operator.

$ M

— Question 04 / Revenue Quality

What percentage of your TTM revenue is recurring?

Revenue under contract: managed services, security, backup, Cloud Resale, etc.

— Question 05 / Customer Base

How many managed services customers do you have today?

Total active customers under managed services contracts.

— Question 06 / Customer Base

What is your annual gross customer churn?

Number of customers lost in a typical year, for any reason, even reasons outside of your control.

— Question 07 / Customer Base

What % of TTM revenue comes from your largest customer?

A single customer's share of your total revenue.

— Question 08 / Customer Base

What % of TTM revenue comes from your top five customers combined?

Combined share for the five largest accounts.

— Question 09 / Geography

Where is the company headquartered?

Used to apply regional adjustments based on Evergreen's transaction history in each market.

— Final step / Identification

Who is the valuation for?

Your valuation appears on the next screen.

Confidential. Your responses go to our M&A team only. We never sell or share your data outside of Evergreen.

Indicative Valuation

Here's your number.

Based on the inputs you provided · Confidential

Estimated Valuation

—

Implied EBITDA multiple: —

TTM Revenue

—

TTM EBITDA

—

— margin

Base EBITDA Multiple

—

How we got there

Adjusted EBITDA Multiple—

Adjusted Recurring Rev Multiple—

Adjusted Revenue Multiple—

Talk to us.

Most sellers we talk to never end up transacting. That's fine. We're happy to be a sounding board, share what we're seeing in the market, and walk through your business in more detail.

Book a confidential call

This indicative valuation is based on the inputs you provided and Evergreen's MSP transaction history. It is not a formal valuation, fairness opinion, or offer to purchase. Actual transaction values depend on detailed financial diligence, customer-level review, contract analysis, and market conditions.

The Methodology

Six factors that impact what an MSP is worth.

— 01

EBITDA & Scale

Larger businesses generally garner higher multiples than smaller ones. Scale brings deeper management benches, better tooling, and lower operational risk, all things buyers pay for.

— 02

Recurring Revenue

The percentage of revenue under managed services contracts. Higher recurring mix supports a meaningfully higher multiple.

— 03

Growth Trajectory

Three-year revenue CAGR. Sustained organic growth above 10% commands a premium; flat or declining revenue compresses it.

— 04

Customer Retention

Annual gross logo churn. Sub-5% churn signals durable contracts and stickiness; double-digit churn raises diligence flags.

— 05

Customer Concentration

Revenue exposure to the top customer and top five customers. Concentration above 20% for the top customer and 50% for the top 5 customers materially impacts buyer appetite.

— 06

Geography & Mix

Region, vertical specialization, and end-market quality. Some markets command higher valuations than others.

How it works

From ten questions to a real number, in minutes, not days.

Answer ten questions

Revenue, EBITDA, growth, recurring mix, retention, concentration, and region. Round numbers are fine, but it's important that they are directionally correct to ensure the highest degree of accuracy.

ii.

See your range instantly

Our model, calibrated to 130+ MSP transactions that Evergreen has closed since 2017, triangulates your value across EBITDA, recurring revenue, and total revenue multiples.

iii.

Talk to us, if you want

Optionally book a call with our M&A team to discuss your valuation or to talk through your exit plan.

Common Questions

A few things worth knowing.

Is this a real valuation? +

Yes, it uses the same framework we apply to every real MSP acquisition Evergreen makes. For typical MSPs, our estimate lands within 10-20% of a real transaction price. It's not a formal offer, but it's a genuine data point, not a guess.

Why does Evergreen offer this for free? +

We believe we have the best data on MSP valuations and want to provide the MSP community with credible information. Whether or not you ever transact with us, we hope this is genuinely useful.

How accurate is the number? +

The model is calibrated to 130+ actual MSP transactions Evergreen has closed since 2017, and triangulates across EBITDA, recurring revenue, and total revenue multiples internally. For typical MSPs, it usually lands within 10-20% of where a transaction would likely happen.

What's not captured here? +

Plenty. Vertical specialization, contract terms, technology stack, geographic footprint, customer quality, and management team are all material to a real valuation. The model gives you a directional range; a refined number requires a conversation.