Industry deep-dive
How to Buy an MSP (Managed Service Provider)
By Michael Freedman, Florida licensed business broker · Reviewed October 22, 2026IT support companies with contracted monthly recurring revenue and some of the strongest multiples in small business.
Why buyers like this industry
- Clients sign multi-year contracts and almost never switch providers.
- Monthly recurring revenue is the most financeable income stream there is.
- Every business needs IT; the market grows with complexity.
- A mature M&A market of larger MSPs provides a clear exit path.
What drives value in this category
- Contracted MRR percentage and contract terms
- Client concentration and tenure
- Technician bench depth and certifications
- Tool stack standardization and margins per seat
- Sales motion beyond owner referrals
Red flags to check
- Revenue is break-fix project work, not contracts.
- The owner is the lead engineer and relationship holder.
- Clients are on month-to-month agreements.
- One client is more than 20 percent of MRR.
Who this suits
Buyers with IT or B2B services backgrounds; technical depth helps but a strong lead engineer can cover it.
Michael Freedman
Florida licensed business broker. 14+ years buying and selling businesses, 1,000+ evaluated, $100M+ in deals closed and advised on.
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