IT MSP Multiples

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by an intermediary from Wesleyan University
in Needham, MA, USA

1yr ago

IT MSP Multiples

Anyone have a sense of the latest multiples here? I was talking with a business owner today who was citing mid teens EBITDA which seemed way too high given his size.

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reply by a lender 1yr ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I am not an expert in multiples, but I am not seeing anything nearly that high. Multiples are ultimately based on a wide variety of factors including industry, sub-information about the industry, total EBITDA, location, etc. We have looked at and financed a number of MSP deals over the past two years and I have not seen multiples above 6x's for what it is worth. Unless it is a really big firm with very strong recurring revenue and very large margins, I have not seen anything that high.

reply by an investor 1yr ago
from University of Texas at Austin in Dallas, TX, USA

Kingsway recently paid 6.3x EV/EBITDA for an MSP with $3.1M of EBITDA. redacted