MSP Multiples

by a searcher from University of Toronto

3 months ago

Hello Searchfunder community!  I'm based in Canada and researching the MSP space.  Does anyone have some recent indications of multiples? Below are a few data points from various sources, and hoping for additional validation based on recent transactions.  

Source 1:
Annual EBITDA $250k - $1 million: Typically results in a valuation of 4-5x annual EBITDA.
Annual EBITDA $1 million - $2 million: Typically results in a valuation of 5-6x annual EBITDA.
Annual EBITDA $2 million - $5 million: Typically results in a valuation of 6-8x annual EBITDA1.

Source 2:
3-6X ARR 


Source 3:
8-10X EBITDA

Thank you to anyone who can shed light.  Cheers, Mei

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2 comments

searcher from University of Toronto

Thanks I’ll reach out ^Searchfunder member‌

3 months ago | like reply | 0 likes

searcher from University of Guelph

If you'd like to have a chat about my experiences, reach out. , I have purchased sold loi'd 6+smbs in Ontario

3 months ago | like reply | 0 likes

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