IT and Software M&A Market Update – December 2025
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.