Sell your MSP Guides
By Jarrod Pittman, founder of Bayotech and a U.S. Navy veteranPublished November 13, 2026
How are MSPs valued?
There’s no single formula, but buyers ask the same basic question: how much dependable, profitable revenue will this business keep bringing in after the owner steps back? These are the things that answer it.
Recurring revenue
Monthly managed services revenue is the heart of an MSP’s value. It’s predictable, and a buyer can plan around it. Project work, hardware sales and one-off jobs still count, but usually for less, because there’s no promise they’ll happen again.
Client agreements and how long clients stay
Buyers look at what your agreements say: what’s included, how pricing works and how easily they can be moved to a new owner. Just as important is your track record. Clients who have stayed with you for years show the revenue is likely to continue.
Client concentration
If one or two clients make up a large share of your revenue, the business depends heavily on keeping them. Revenue spread across many clients is seen as safer.
Margins
Revenue matters, but so does what’s left after paying for staff, tools and licenses. Healthy margins show the business is priced well and runs efficiently. Clean books that separate business and personal spending make your margins easy to see.
Owner dependence
If you are the only one who knows the networks, holds the client relationships and answers the escalations, the business is worth less without you. Documentation, a capable team and clients who know more than one person all reduce that risk.
Other things buyers notice
- Standard tools: clients on a consistent set of tools are easier to take over.
- Documentation: networks, passwords and procedures written down and up to date.
- Security in your own shop: multi-factor sign-in and good habits across your own systems.
- Growth: whether recurring revenue has been steady or growing.
How to raise your MSP’s value before you sell
Most of what raises value is good practice anyway: move clients onto monthly agreements, write things down, spread relationships across your team and keep tidy books. Ourchecklist for preparing your MSP for sale turns this into a to-do list.
The deal structure can affect the total price too. For example, taking part of the price over time, based on how many clients stay, can mean a higher total. See MSP deal structures for the options.