Jasper Accountancy · MSP Tools

MSP Valuation Estimator

A ballpark range for what your IT business could be worth
MSP Valuation Estimator | Jasper Accountancy

Two forces set an MSP's value: how much of your revenue recurs, and how profitable that revenue is. Buyers pay a real premium for sticky monthly contracts and very little for one time project or product work. This tool leans on the numbers you already track, weights your recurring base the way a buyer would, then returns a range rather than a single figure. Adjust the inputs and watch the range respond.

01 Your revenue

The numbers you already track. Recurring revenue is weighted far more heavily than project or product resale, because that is exactly what a buyer pays for.

Managed services, contracts, seats, and support agreements. Your predictable monthly base.
Onboarding, migrations, one time implementations, and hourly work. Non recurring.
Hardware, licenses, and product pass through. Buyers value this the least.

02 Your margins

Margins drive profitability, and profitability is what a valuation ultimately rests on. Defaults reflect typical small MSP benchmarks. Adjust to your reality.

Healthy managed services books usually land 45 to 60%.
Labor heavy project work typically runs 30 to 45%.
Pass through hardware and licensing is thin, often 10 to 20%.

03 Quality & risk factors

These are the levers that move an MSP to the top or bottom of its range. They are what a buyer's due diligence actually scrutinizes.

Heavy concentration is one of the most common value killers.
Locked in agreements de risk the revenue for a buyer.
Growth compounds into a higher multiple.
A business that runs without you is worth more than a job.
Sticky clients are the whole thesis of recurring revenue.

Estimated valuation range

$0 to $0

Enter your numbers to see a range.

$0$0
Total annual revenue
$0
across all lines
Recurring revenue mix
0%
of total revenue
Est. owner earnings (SDE)
$0
modeled, pre tax
Business quality score 0 / 100
Higher riskPremium
Revenue mix
Recurring Project Product

This model is only a starting point.

A real valuation weighs your contracts, your books, and the market, not just a slider. When you are ready for the number that actually holds up, it is time to talk to a real CPA.

Talk to a real CPA

Important, please read

This tool is an educational estimate only. It is not a business appraisal, a valuation opinion, a fairness opinion, an offer, or an inducement to buy or sell, and it must not be relied upon for any transaction, financing, tax, litigation, or ownership decision. The output is a deliberately wide range generated from simplified assumptions and rules of thumb. It does not reflect a review of your financial statements, contracts, or operations.

Real world MSP valuations depend on factors this tool does not capture, including verified financials and quality of earnings, deal structure (cash versus earnout versus equity roll), buyer type and synergies, working capital, debt, taxes, market and interest rate conditions, and the findings of due diligence. Two MSPs with identical inputs can sell for materially different amounts. Actual results routinely fall outside any range shown here.

Using this tool does not create a client, engagement, or fiduciary relationship with Jasper Accountancy, and nothing here is tax, legal, accounting, or investment advice. No result should be quoted, shared, or represented as a valuation from Jasper Accountancy or from any of its team. For a figure you can actually stand behind, engage a qualified professional for a formal valuation. Jasper Accountancy disclaims all liability for decisions made in reliance on this estimator.

JASPER ACCOUNTANCY · Accounting for MSPs