October 1, 2026
Managed Service Provider Market Update – Q3 2026
Buyer selectivity shaped MSP M&A in Q3 2026, reflecting a flight to quality, disciplined underwriting and a clear premium for scaled platforms over undifferentiated providers.
Other themes this quarter:
Sponsors are prioritizing vertical specialists and providers with deep cybersecurity and compliance capabilities
AI is emerging as a value driver, but only when tied to measurable outcomes
Consolidation remains active as the buyer universe continues to expand
MSPs with under $5mm of EBITDA traded at a median of 7.7x EBITDA, with those under $2mm generally below that level and those at $2 – $5mm above it. MSPs with over $5mm of EBITDA traded at a median of 16.0x EBITDA, more than double. Across all transactions analyzed, the overall median multiple was 13.0x EBITDA.¹
"Buyers are still paying up for MSPs, but they're more selective about what commands a premium. Scale matters, but so do customer and revenue quality, growth, margins and positioning with the right buyers.” – Michael Ifraimov, Founder & Managing Director, Crown Peak Advisors
Analysis includes MSP transactions involving US-based targets completed from 2021 through Q3 2026.