Most IT managed services businesses in Canada change hands at a multiple of their normalized earnings, typically EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted for owner add-backs. The multiple itself depends on your size, location, growth trajectory, and how much the business depends on you, the owner.
IT managed service providers are valued heavily on recurring monthly revenue and contract stickiness. A high share of recurring MRR, multi-year agreements, low churn, and documented systems lift value; break-fix project revenue, month-to-month clients, and reliance on the owner for delivery weigh it down.
Pushes the number up
- A high share of recurring monthly revenue (MRR)
- Multi-year managed services agreements
- Low client churn and high renewals
- Documented systems and a delivery team
Pulls the number down
- Mostly break-fix or project revenue
- Month-to-month clients
- Owner handles delivery or key accounts
- Concentration in one large client
You put in your numbers. We show you two things.
Market data: Sector-specific transaction multiples based on aggregated business transaction reports. Updated quarterly.
Peer benchmarks: Estimates from verified owners in your sector and size range. See what similar businesses are worth, and compare your own expectations against market data and transaction multiples.
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Get My InsightsManaged service providers are valued as a multiple of normalized EBITDA, with a premium for recurring revenue. The share of MRR, contract length, churn, and owner dependence all move the number. Clariva shows the benchmark range for your size and province.
Higher for providers with a large share of recurring MRR under multi-year contracts; lower for break-fix, project-based, or owner-dependent shops. Enter your numbers to see your range.
Yes. Recurring MRR under contract is predictable and sticky, which buyers reward with a stronger multiple than project or break-fix work.
No. The estimate is for benchmarking and context only, and does not replace a formal business valuation. For a transaction, work with an M&A advisor or a Chartered Business Valuator (CBV).
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Not financial advice. Clariva is a data aggregation and compilation tool. All ranges shown on this platform are derived from publicly available transaction data and anonymized user submissions, and are provided for informational and benchmarking purposes only. Nothing on this platform constitutes a formal business valuation, financial advice, or a recommendation to buy or sell. Consult a qualified M&A advisor, Chartered Business Valuator (CBV), or legal counsel before making any financial or transactional decisions. Individual data is never shared or sold. Anonymized, aggregated insights may be used for industry research. You can request deletion of your data at any time by emailing tanner@clariva.ca.