High Multiple

Outsourced IT Support Business — Business Valuation Multiple

EBITDA Valuation Guide · Small & Mid-Sized Businesses

Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.

Min

3.5×

Typical

5.5×

Max

7×

Revenue Model

Recurring

Capital Intensity

Low

3.5×Typical EBITDA Range7×

A typical multiple of 5.5× EBITDA reflects mid-market transactions in the $1–$50M revenue range.

Overview

Outsourced IT support businesses targeting the SME market typically trade at 3.5×–7× EBITDA. Monthly managed service contracts, remote and on-site helpdesk capability, and Microsoft 365 and cloud migration expertise support strong valuations. A growing security and compliance overlay differentiates businesses from commodity break-fix competitors. Talent cost and client pricing sensitivity are key risks.

Key Value Drivers

  • Monthly managed service contracts
  • Remote and on-site helpdesk capability
  • Microsoft 365 and cloud migration expertise
  • Security and compliance overlay
  • Multi-site SME client portfolio

Key Risks

  • Technical talent cost and retention
  • Client pricing sensitivity in SME market
  • Competition from large national MSPs
  • Contract renewal concentration
  • Vendor rebate and licensing changes

Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.