Startup Mergers, Acquisitions & Exit Marketplaces3 min readUpdated September 2026

Acquire.com vs Flippa: Selling an IT Consulting or MSP Firm

IT consulting and managed service providers sit closer to SaaS than most services businesses do, because a real chunk of revenue is recurring: monthly managed-services contracts that renew on autopilot as long as the client stays happy. That recurring core is exactly what a platform like Acquire.com is built to verify, which changes the diligence conversation for an MSP compared with a pure project-based IT shop.

Here's how that plays out for a fairly typical MSP, walked through as a single worked example rather than a generic checklist. The specific numbers are illustrative, but the sequence, where the friction shows up and what fixes it, tends to repeat across real MSP sales.

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The setup

Say an MSP does $3.2M in annual revenue, split roughly 70% managed-services contracts billed monthly and 30% project work like migrations and hardware refreshes. The owner wants to sell within a year and has never gone through an acquisition process before.

The firm has eleven employees, including two senior engineers who could plausibly run client escalations without the owner, and a PSA system that already tracks contract renewal dates automatically. That last detail turns out to matter more than the owner expects.

What Acquire.com would ask for first

Because the managed-services revenue is recurring and billed on a predictable schedule, the owner can treat it almost like SaaS MRR for verification purposes: connect the billing or PSA system, show month-over-month retention by client, and separate the managed-services share, 70% of revenue in this example, cleanly from the lumpier project revenue. Acquire.com's buyer pool includes strategic acquirers, often other MSPs looking to add a book of contracts, who will specifically want that recurring number verified before they'll engage seriously.

One early buyer conversation stalls when the owner can't immediately produce client-level churn for the trailing two years, only the current snapshot. Pulling that history together from old invoices takes a week the owner hadn't planned for, and it's the kind of delay that costs momentum in a live process.

What Flippa would surface instead

Flippa's broader marketplace would put the listing in front of a wider range of buyers, including some who value the whole business on blended EBITDA rather than separating recurring from project revenue. That can work in the owner's favor if the project revenue is consistent year over year, since a generalist buyer may not discount it as heavily as a software-focused buyer would.

A generalist buyer coming through Flippa in this example turns out to run a small portfolio of local service businesses and isn't especially interested in the technical detail of the managed-services stack, just the cash flow and the client list. That buyer moves faster through diligence than the strategic MSP acquirer, but offers a lower multiple.

Running the numbers on cost to sell

In this example, a $3.2M revenue business selling for something in the $2M to $4M range depending on structure would find that Acquire.com's zero seller commission on a standard listing saves real money compared with Flippa's listing fee plus a success fee at close. The owner should still weigh that against Flippa's brokerage support for a deal this size, since a broker running outreach can sometimes produce a higher final price even after fees.

What actually closed the deal

In a case like this, the deciding factor is usually contract assignability. MSP client agreements often need explicit consent to assign, and a buyer's attorney will want every major contract reviewed before closing regardless of which platform sourced the buyer. The owner who gets ahead of that, contacting top clients before a buyer asks, tends to close faster and with fewer last-minute price reductions.

In this example, three of the firm's top ten clients had agreements silent on assignment, which the owner's attorney flagged before any buyer did. Getting signed consent letters from all three ahead of the letter of intent turned what could have been a month of renegotiation into a footnote in the closing checklist.

What the owner would do differently next time

The owner's biggest regret, in hindsight, was waiting until an offer was on the table to build the trailing two-year churn history a buyer wanted immediately. That data existed the whole time, just scattered across old invoices and a PSA system that wasn't being used for reporting. Building that report once, before listing anywhere, would have saved a full week of momentum during the most fragile part of the process, the window right after a buyer signals real interest.

Takeaways from this example:

  • Build the trailing two-year churn history before listing, using invoices and the PSA system, instead of waiting until a buyer asks for it.
  • Separate managed-services revenue from project revenue, and connect the billing or PSA system so the recurring share can be verified.
  • Contact your top clients about assignment consent before a buyer's attorney raises it, since MSP agreements often require explicit consent.
  • Compare the zero-commission listing with what a broker could add through a wider buyer process, because the fee saved is not always the proceeds gained.
Executive Capability Standard

What Good Looks Like

An MSP ready to sell has recurring managed-services revenue separated cleanly from project revenue, client contracts confirmed as assignable in writing, and month-over-month retention data a buyer can review without waiting on the owner to pull it together.

Building The Capability (5-Stage Skill Ladder)

1. Learn:Look at how a few recent MSP sales in your revenue range were structured, since recurring-versus-project mix drives the multiple more than total revenue does.
2. Do Manually:Separate managed-services billing from project billing in your PSA or accounting system for the last two years, not just the trailing twelve months.
3. Delegate:Have an attorney review your top client contracts for assignment language before you list, so there are no surprises during diligence.
4. Automate:Connect billing data to a metrics tool or Acquire.com so recurring revenue and client retention update automatically instead of being pulled by hand for every buyer conversation.
5. Buy:Engage a broker or M&A advisor familiar with MSPs once you have a serious offer, so someone experienced is reviewing deal structure alongside you.

How to Get Started

Disclosure: We may earn a commission if you buy through some links on this page. It doesn't change what we recommend.

Frequently Asked Questions

Do MSPs get valued more like SaaS or more like a services business?

Somewhere in between. The recurring managed-services portion often gets a multiple closer to what recurring software revenue earns, while project and break-fix revenue trades at a lower, more services-typical multiple. Keep the two separated in any financials you present.

Does client contract assignability really matter that much?

Yes. If your MSP agreements require client consent to assign, a buyer's attorney will flag every one during diligence. Reviewing and, where needed, renegotiating assignment language before you list avoids a scramble once you're under a letter of intent.

Is Acquire.com's zero commission actually better for an MSP sale?

It usually saves money on the fee itself, but weigh that against what a broker or Flippa's brokered path might add in final sale price through a wider, better-run buyer process. The fee saved isn't always the same as the proceeds gained.

About the numbers

This guide doesn't quote a sourced benchmark. Figures in it are estimates or general guidance, so check them against your own numbers.

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