Valuation Advice Midsize MSP

Hey everyone,

Currently looking at a potential acquisition of a 30-person MSP in the Midwest. TTM rev about $7M, adj. EBITDA $1M. Recurring revenue sits at around 45%, in a mix of managed services, Microsoft 365, MDR, and IaaS. No client over 6% of rev. Hardware float at around 55% of sales.

Owner retiring, open to asset or stock sale. What multiples are you seeing for MSPs in this range? Any structuring tips when the seller is flexible?

Appreciate any insight.