$1M EBITDA IT, AI and Cybersecurity Solutions Provider (MSP) in USA

September 29, 2025

by a searcher from Thunderbird School of Global Management in Miami, FL, USA

I have identified an acquisition target with an MSP that has 10 years of profitable operating experience with 80% recurring revenues. I would like to raise $1.8M in preferred equity and ideally I would like to have three to four investors. Ideally, the investors would have expertise or strategic value in IT, AI, Cybersecurity, SaaS or customer acquisition marketing. Please reach out to me for an NDA and additional information.

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Reply by a searcher
from Warwick Business School in Wappingers Falls, NY 12590, USA

^redacted‌ maybe you know, but if you are going via SBA, you will need 10% of the purchase price as downpayment and some of that can come from a seller note (most likely, depending on lender, on full standby so payable after the SBA loan is paid off). I would not do a purchase price of more than $4M or 4x of EBITDA - it may be worth a higher multiple and SDE maybe more than 1M. But having run, bought and sold several IT companies over the last 20 years, I can safely that it is not always the EBDITA/SDE multiple - you should also consider a revenue multiple and going over 1.5x to 2x is a risk. Also depends on what % of the revenue is monthly retainer based as opposed to contractual and what is the term of the contracts, longevity of the customers, customer concentration etc - but I am sure you know these and/or will come out during DD. Hope this helps. Best - Roni

Reply by a professional-advisory
from University of Colorado at Boulder in Denver, CO, USA

Can't help you with funding, but I'd love to talk to you about diligence on this project in particular. Cyber Diligence on this will be critical, as there is a TON of exposure in MSP's/MSSP's. One breach and the entire thing comes down like a house of cards.

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