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IT Services Business valuation.

IT services businesses span managed service providers (MSPs), SaaS companies, and project-based consultancies. Valuation varies dramatically by revenue model — recurring contracted revenue commands materially higher multiples than time-and-materials work.

Other sectors

  • — Typical multiples

What buyers pay

MSPs typically trade at 5×–9× EBITDA, SaaS at 3×–8× ARR depending on growth and retention, and project-based IT consultancies at 4×–6× EBITDA.
  • — Key value drivers

What moves your multiple

Recurring revenue %

Proportion of contracted MRR/ARR versus project income.

Net revenue retention

Existing customer growth net of churn.

Customer concentration

No single client above 10% of recurring revenue.

Tech stack & IP

Proprietary tooling, automation, and platform leverage.

Talent retention

Engineer attrition rates and bench strength.

Scalability

Gross margin trajectory as the business adds customers.
  • — Buyer landscape

Who acquires businesses like yours

  • Larger MSPs and IT services groups
  • Private equity building MSP platforms
  • SaaS strategic acquirers
  • Overseas buyers entering UK market
  • — Our insight

"Converting project revenue into managed-service contracts and improving net revenue retention can lift IT services valuations by 2–3 turns within 18 months."

  • Take the next step

Find out what your business could be worth before buyers do.

If you are considering a sale now or in the next few years, a confidential valuation call can help you understand where you stand, what buyers may look for, and what could improve your outcome.

Book a Confidential Valuation Call

Private, no-obligation discussion for business owners.