by Madhur Duggar, Excendio Advisors
Excendio Advisors’ IT Newsletter for December is now live. Here are highlights of what we’re seeing across the MSP and IT services market.
Partnered Exits: Partnered exits are in. We are working with several MSPs interested in partnering with other MSPs to exit together. It’s not easy. But adds 1x-2x EBITDA
SMB Outlook 2026: YE 2025 numbers are in. SMBs feel good about their business but their outlook for growth and attracting and retaining talent has gotten more subdued.
MSP Outlook 2026: Overall MSP growth is likely to normalize around 10%, not the 15–20% many owners enjoyed a few years ago. Tighten cash flow, revisit pricing and proactively manage churn. Financial discipline will matter more than clever strategy decks.
Podcast: Inside an AI-Enabled MSP: Our latest M&A Insights episode with MSP owner Ed Correia discusses how he harnesses AI to create value and boost margins.
Recent M&A Activity: Another busy month with activity from The 20s, Thrive, Omega Systems and others. Buyer appetite remains strong for well-run firms with recurring revenue discipline.
Valuation Check-In: We’ve updated our public and private market multiples. If you want a quick, confidential valuation benchmark, reply “Yes” — we’ll run it at no cost.
Receive your copy of the December 2025 Newsletter by clicking here.