by Madhur Duggar, Excendio Advisors
Excendio Advisors’ IT Newsletter for January 2026 is now live. Here’s 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.
- ITN Grow Houston: Partnered exits were a key theme at the conference. We discuss some of our key takeaways from that discussion.
- Avg MSP Size: Did you know that on average there are only 57 SMBs per 10+ seat MSP in the country? And that means it is tough to grow past $4MN for a local MSP.
- Rough year for Public MSP EBITDA Multiples: Public market MSP multiples contracted from 13.3x to 10.7x in the last twelve months driven by AI concerns. Are we at a peak?
- Podcast: Inside Jersey City’s Premier Retail MSP: In this podcast, we talk about how eMazzanti, JC’s leading retail MSP, has partnered with MSPs across the world to help them with their Backup and Disaster Recovery.
- Recent M&A Activity: Another busy month with activity from IT Solutions and Guide Technologies. Buyer appetite remains strong for well-run firms with recurring revenue discipline.
- Valuation Check-In: If you want a quick, confidential valuation benchmark, reply “Yes” — we’ll run it at no cost.
If any of these insights hit close to home, reply here. Always happy to talk.
Listen to my latest M&A Insights podcast here.
Receive your copy of the January 2026 Newsletter by clicking here.