6x multiple for an Managed printing services company

searcher profile

March 22, 2023

by a searcher from IE Business School in Woodbridge, Vaughan, ON, Canada

submitted loi, but sell side is negotiating ofc. I feel I am overpaying. Wanted to ask the community here. What do you think? Where is the industry going? Is it worth it? Do you still print stuff?

What do people pay MSPs in general? Although I feel MSPs might be the norm now, I have my doubts about printing.

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I would concur with the points already made. It is really about who their customers are and what the target market is. Also, what their technical capabilities are. If they can handle more than just printing but direct mailing and combine it with digital marketing, they are even more valuable. Although it may shrink to an extent, I do not believe printing advertising is going to go away. It is still very successful.
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Reply by an investor
from Novosibirsk State University in Дубай - Объединенные Арабские Эмираты
Very generic question but a few observations:
- in many markets the digitisation trend ultimately led to GROWTH in printing thanks to new kind of documentation needed as well as ease of printing as a service
- some markets are just growing economy wise
- client mix will of course vary, try to analyse it closely , i.e. how THEIR business is doing?
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