MSP Valuation Estimator
Enterprise value = EBITDA × multiple. The argument is always about the multiple. This model starts from a base multiple you choose, then adjusts it for the four quality factors buyers actually reprice: recurring-revenue mix, growth, customer concentration, and scale. Nothing leaves your browser.
How the adjustments work
Each factor moves the base multiple: recurring mix ≥80% adds 1.0×, 60–79% adds 0.5×, under 40% subtracts 1.0×. Growth ≥20% adds 1.0×, 10–19% adds 0.5×, negative growth subtracts 1.0×. A single customer over 25% of revenue subtracts 1.0×, over 15% subtracts 0.5×. EBITDA of $3M+ adds 1.0×, $1M+ adds 0.5×, under $500K subtracts 1.0×. The output range is the adjusted multiple ±1.0× — because real processes produce ranges, not points.
What this is not
Not a fairness opinion, not investment advice, and not a substitute for a quality-of-earnings review. The adjustment weights are a transparent, editable heuristic — the point is to make the multiple conversation explicit, not to settle it. Anchor the base multiple to real transaction comps for your size band and geography.
Frequently asked questions
What does the MSP Valuation Estimator do?
It models an MSP's enterprise-value range as EBITDA × an adjusted multiple. You set the base multiple from comps you trust; the tool adjusts it for recurring-revenue mix, growth, customer concentration, and scale — the four factors buyers most consistently reprice — and returns a low/mid/high range. All math runs in your browser; no inputs are transmitted or stored.
Where does the multiple come from?
Deliberately, from you. Published MSP multiples vary widely by size band, geography, and cycle, and any single asserted number would be stale or wrong for your situation. The tool's contribution is making the adjustment logic explicit and consistent — the base multiple should come from real transaction comps for businesses your size.
Is this a valuation I can use in a deal?
No. It's a framing tool for the multiple conversation — useful before a broker call or an LOI response, so the discussion starts from named factors instead of vibes. A real process needs comps, a quality-of-earnings review, and advisors. Treat the output as a structured first pass, not an opinion of value.