What’s Your MSP Really Worth?
A free, interactive tool that gives you a realistic picture of your MSP’s valuation based on the factors that buyers actually care about.
Have your revenue, EBITDA and recurring revenue mix to hand. Takes about two minutes. No email required and no information is stored or sent. This is just for your own use.
UK MSP Valuation Calculator
Get an indicative valuation range for your UK managed service provider in under 2 minutes. No email address required to see your results.
Your Business
Your total turnover for the last 12 months.
Profit before tax as a % of revenue, straight from your Xero P&L. For most asset-light MSPs this is close enough to EBITDA.
A buyer values the business on what it earns once someone is paid a market rate to run it (we use £60,000). Pop your actual salary in and we will normalise it. Most owners take a mix of salary and dividends, so this matters. Leave blank if you already pay yourself roughly a market wage.
Have depreciation, amortisation or a business loan? Add them back
EBITDA adds these back to profit. Most asset-light MSPs with no debt can leave both blank.
Earnings before interest, tax, depreciation & amortisation. Use your adjusted (owner-normalised) figure if you have it.
Optional. Used only for a revenue sanity check. Typical UK MSP: 15–25%.
Revenue Quality
Percentage of revenue from contracted MRR/ARR managed service agreements
Year-on-year revenue growth rate
Client Base
Your single largest client as a percentage of total revenue
Standard term of your client managed service agreements
Business Characteristics
Dedicated cybersecurity or SOC capability
Whether you focus on specific industry sectors (e.g. legal, healthcare, financial services)
Owner Dependency Risk flag — not in calculation
How dependent is the business on you or another key individual?
This is a qualitative flag only — it does not affect the figures above. Owner dependency typically causes a 15–25% discount in actual transactions.
Your Estimated Valuation Range
What’s driving your multiple
| Factor | Your selection | Adjustment |
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Want more info on the factors that can impact your valuation?
Get a free personalised breakdown of the key factors affecting your valuation, plus practical guidance on how to improve it. You can also book a call if you fancy a chat about your unique situation.
This calculator provides an indicative valuation range based on current UK MSP M&A market data (2024–2025). It is for guidance purposes only and does not constitute financial, legal, or professional advice. Actual transaction values depend on deal structure, buyer type, due diligence findings, and prevailing market conditions. Always engage a qualified M&A adviser before making decisions. Sources: Aventis Advisors (120 disclosed transactions, H2 2024); WTA LLP UK MSP M&A Outlook 2025; Worklyn Partners.
Why Valuation Matters (Even If You’re Not Selling)
Most MSP owners have a rough number in their head. Something a colleague mentioned at a channel event, or a multiple they heard at an industry conference. But that rough number can be wildly off, and the gap between a 3x and a 6x multiple on the same EBITDA can be worth millions.
The good news? The factors that determine where you sit on that spectrum are largely within your control. Recurring revenue mix, client concentration, contract quality, growth rate, cybersecurity capability, and vertical specialisation all move your multiple up or down, often by more than you’d expect.
And here’s the thing that often gets overlooked: a business with a strong valuation is almost always a business that’s more profitable, better run, and more enjoyable to own. Improving your valuation isn’t just about a future exit. It’s about building a better business right now.
If you want to dig into the specifics, we’ve covered six practical fixes that improve MSP profitability and valuation in more detail.
What Drives MSP Valuations
UK MSP acquisitions are valued on an EBITDA multiple basis. Your base multiple is determined by your earnings, but the quality adjustments below can move that multiple by as much as plus or minus 1.5x.
Recurring Revenue Mix
The single biggest driver. Buyers pay a premium for predictable, contracted MRR. Below 60% starts to concern acquirers.
Revenue Growth Rate
Growth signals health. A business growing at 15%+ year on year looks very different to one that’s flat.
Client Concentration
If your top client is more than 20% of revenue, buyers will discount the multiple or make it contingent on retention.
Contract Quality
Multi-year agreements with auto-renewal and 90+ day notice periods tell a completely different story to month-to-month.
Cybersecurity Practice
MSPs with mature MDR, SOC, and compliance capability command higher multiples. They’re stickier and more attractive to acquirers.
Vertical Specialisation
Generalist MSPs compete on price. Specialist MSPs compete on knowledge. Depth in a specific sector makes you harder to displace.
The Same EBITDA. Very Different Outcomes.
Two MSPs, both with £750k EBITDA. The only difference is how they score on the quality factors above.
Well-Positioned MSP
Strong recurring revenue, 20%+ growth, healthy client spread, multi-year contracts, cybersecurity practice, vertical focus.
£4.5m to £4.9m
6.0x to 6.5x multiple
Poorly-Positioned MSP
Patchy contracts, one client at 35% of revenue, heavy owner involvement, no defined security practice.
£2.6m to £3.0m
3.5x to 4.0x multiple
The difference? Up to £2.3 million. Determined entirely by factors within your control.
Frequently Asked Questions
What multiple do UK MSPs typically sell for?
UK MSP transactions have generally landed between 3.5x and 7x EBITDA in recent years. Smaller MSPs (under £500k EBITDA) tend to sit at the lower end, while businesses above £1m EBITDA with strong recurring revenue and a defined cybersecurity practice push into the 6-7x range. Strategic buyers paying for capability rather than just earnings can occasionally go higher, but those are the exceptions.
Is recurring revenue really the biggest factor?
For the vast majority of MSPs, yes. Buyers are buying predictability, and recurring revenue is the cleanest signal of that. An MSP with 80% recurring revenue under multi-year contracts is a fundamentally different proposition to one at 50% with month-to-month agreements, even if the headline EBITDA is identical. That said, recurring revenue alone isn’t enough. Quality of contracts, client concentration, and growth rate all matter too.
How long does it take to improve an MSP’s valuation?
Realistically, expect 12 to 24 months to see meaningful movement on the factors buyers actually care about. Tightening contracts and addressing client concentration can show results within a year. Building a credible cybersecurity practice or shifting your revenue mix takes longer. The earlier you start, the more options you have, which is why this matters even if a sale is years away.
Why might my MSP be worth less than I think?
A few common reasons. Heavy owner dependency (the business can’t run without you) discounts the multiple significantly. Patchy contract paperwork means buyers will treat revenue as less secure than you do. One or two clients carrying a big share of revenue is a real risk for an acquirer. And reported EBITDA often needs adjusting for an owner’s salary at market rate, which can knock the headline figure down. The good news is that all of these are fixable, but they need addressing before you start a sale process, not during it. If you want a structured look at where you stand, that’s exactly what our Value Transformation Assessment covers.
Want to Improve Your Valuation?
The Value Alchemists helps MSPs and service businesses stop competing on price and start commanding what their expertise is worth. If you’d like to understand what’s driving (or dragging) your valuation and what realistic improvements look like, download the free guide or book a free discovery call.
Valuation multiples are indicative based on UK MSP M&A market data from Aventis Advisors, WTA LLP, and Worklyn Partners, and should not be taken as financial advice. Individual business valuations will vary based on specific circumstances. The Value Alchemists is a trading name of Innovate CX Ltd.