Monthly recurring revenue under contract
MRR with real term, per-seat or per-device pricing, and automatic renewal is the asset. Project and break-fix revenue is valued far lower.
El Paso Owner's Guide · Managed Services, IT & Cybersecurity
Managed service providers earn the highest multiples in professional services for one reason: contracted monthly recurring revenue. Buyers pay for MRR under agreement, low churn, and engineers who stay — not for break-fix hours.
The Local Market
MSP consolidation is one of the most active acquisition markets in the country, and El Paso's business base, healthcare providers, and government contractors create durable demand. Buyers here are regional platforms and private capital that underwrite recurring revenue with precision.
MRR with real term, per-seat or per-device pricing, and automatic renewal is the asset. Project and break-fix revenue is valued far lower.
Logo and revenue retention, average client tenure, and remaining contract term tell a buyer how much of the book survives the transition.
Margin per seat, a standardized tool stack, documented processes, and vendor agreements determine how efficiently a buyer can absorb you.
Technician depth beyond the owner, documented escalation, and cybersecurity or compliance services raise both margin and multiple.
Free Estimator · No Email Required
Move the slider. This uses owner's discretionary earnings (SDE) — your net profit plus your salary, personal expenses run through the business, interest, depreciation, and one-time costs. MSPs at scale are frequently valued on EBITDA or a multiple of MRR instead.
$180,000 / year
Which of these are true today?
Illustrative Range
Estimated enterprise value
$693,000 – $1,188,000
That’s roughly 3.9× to 6.6× your owner’s earnings, before any real estate you own.
Every box you check is a lever you can still pull before you list. Owners who fix the books and the lease first routinely land at the top of their range instead of the bottom.
Illustration only — not an appraisal or an offer.
Step by Step
Three years of P&Ls and tax returns, reconciled, plus MRR by client, contract terms and renewal dates, seat and device counts, gross margin per client, churn history, project revenue split, and technician utilization.
Not a broker's opinion, and never a platform buyer's opening number. We commission a certified valuation from an independent NACVA-credentialed appraiser — the caliber of report banks, buyers, the IRS, and courts rely on.
Every client moved from hourly work onto a contracted monthly plan before listing is multiplied at closing. This is the highest-return work available to an MSP owner.
Client agreements and assignment language, vendor and licensing contracts, tool stack transferability, cybersecurity insurance and incident history, data handling and compliance obligations, technician agreements, deferred hardware liabilities, and unpaid taxes.
No word to your clients or your engineers. We market blind on financial and service profile to vetted, financially verified buyers under NDA — so you compare offers rather than react to one.
Offers, escrow, quality-of-earnings and MRR verification, client consents, engineer retention, earnout and transition structure, and funding. We stay on it through closing.
Costly Mistakes
Hourly and project revenue earns a fraction of the multiple that contracted MRR does. Converting the book is worth more than any negotiating tactic.
Retention is the number buyers underwrite. If you cannot produce it, they assume the worst and price accordingly.
If the hardest tickets and the client relationships both run through you, the buyer is purchasing dependency. Build the bench first.
Contract term is value. Renewing clients onto multi-year agreements before listing directly raises what a buyer will pay.
Incident history, insurance coverage, and client data obligations are examined closely. Gaps become indemnities and escrow holdbacks.
MSP acquirers are sophisticated, and their offers often include earnouts, rollover equity, and retention conditions. The structure can matter more than the headline number.
Questions Owners Ask
Straight answers, no hedging. If yours isn’t here, call us and ask it directly.
Contracted MSPs commonly trade between roughly 4 and 7 times owner's discretionary earnings, with high recurring revenue, strong retention, engineer depth, and security service lines at the top of that range. Break-fix-heavy businesses land well below it. Only a certified independent valuation survives a lender's underwriting.
Yes — it is the single largest driver of value in this category. Contracted MRR is predictable and financeable, while project revenue must be re-won every quarter, and buyers price the difference sharply.
Frequently, particularly with platform acquirers. The measurement basis, the period, and your role during it deserve as much scrutiny as the headline price, because they determine what you actually collect.
It depends on assignment and change-of-control language, and some clients require consent or re-papering. Reviewing agreements before marketing avoids a mid-diligence problem. Confirm specifics with your own counsel.
Qualified buyers can access SBA 7(a) financing up to $5 million, and recurring-revenue technology services are a favored lender profile. Larger transactions move to conventional or private-capital structures. SBA pre-qualification is a preliminary, non-binding lender assessment, not a loan commitment.
Not from us. Your company is marketed blind to vetted buyers who sign a non-disclosure agreement before they learn who you are, and client-level detail is released in stages at your direction.
Where we work
Whether your it managed services provider sits on the east side, downtown, out in the valley, or across the state line in Doña Ana County, the sale process is the same: verified financials, an independent certified valuation, and a confidential, competitive market of qualified buyers. We meet owners at a time and place of their choosing.
IT Managed Services Provider Owners · Confidential
One confidential conversation with a partner — not a coordinator. We will tell you where your numbers put you today, what would move the multiple, and whether now is your moment.