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
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
Related Industries
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.