MSP Valuations and Role of Recurring Revenue

searcher profile

October 18, 2021

by a searcher from Harvard University in Boston, MA, USA

Hi All,

I'm looking at an MSP in the Northeast and want to get a better understanding of recurring revenue and its role in valuing the business. What does healthy recurring revenue percentages of total revenue look like...25%, 50%, +75%...? Thank you.

Respectfully,
Hans

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commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
More insight: https://www.clearlightpartners.com/what-investors-want-to-see-in-an-msp/
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Reply by an intermediary
from University of Victoria in Victoria, BC, Canada
Hi Hans - we are currently working with an MSP seller in Alberta with a base of 40% recurring revenue. It sounds like they've continued to try and optimize this ratio in recent years.

I hope that helps!
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