IndustriesTechnology Services & IT
INDUSTRY GUIDEHIGH BUYER ACTIVITY

Selling a Tech Services Business:
Valuation, Buyers & Process

Technology services companies — MSPs, IT consulting, digital agencies — command strong multiples when recurring managed services revenue is high and customer retention is strong.

TECHNOLOGY SERVICES & IT M&A BENCHMARKS — 2026

EBITDA Multiple
5x–12x
Typical range for LMM deals
Revenue Multiple
0.8x–3x
For businesses with strong margins
Avg Deal Size
$3M-$40M
Lower middle market range
EBITDA Margin
12-25%
Typical for this sector

WHAT BUYERS LOOK FOR

What Makes a Tech Services Business Attractive to Acquirers

PE firms and family offices evaluating technology services & it businesses apply a consistent framework. Understanding what they prioritize — and what they discount — determines whether you get a premium offer or a lowball bid.

Managed services recurring revenue (MRR)
Customer retention rate above 90%
Gross margin above 40%
Technical certifications and partnerships
Vertical specialization
Cybersecurity capabilities

VALUATION RISKS

What Reduces Your Multiple

These are the factors that cause buyers to discount their offer — or walk away entirely. Address them before going to market.

Project-based vs. recurring revenue mix
Customer concentration
Technology obsolescence
Talent retention in competitive market
Vendor dependency
Cybersecurity liability

ACTIVE BUYER TYPES

Who Is Buying Tech Services Businesses Right Now

The buyer landscape for technology services & it varies significantly by deal size and business profile. Understanding who is actively acquiring — and what they're paying — is critical to running an effective process.

Private Equity

Actively acquiring tech services businesses in the lower middle market.

Strategic Acquirer

Actively acquiring tech services businesses in the lower middle market.

Roll-Up Platform

Actively acquiring tech services businesses in the lower middle market.

Family Office

Actively acquiring tech services businesses in the lower middle market.

ACTIVE CONSOLIDATORS IN TECH SERVICES

Kaseya
ConnectWise
N-able
Pax8
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