Consulting, Marketing, IT Services & Advisory Firms
| Low | 2× |
| Median | 3× |
| High | 4.5× |
| Low | 2.5× |
| Median | 3.8× |
| High | 5.5× |
An established IT MSP or consulting firm with $400K SDE and 50%+ recurring revenue (retainers, managed services) typically sells for $800K–$1.8M (median 3.0× SDE). Marketing agencies and creative firms with transactional billing structure trade at 1.5–2.5× SDE due to revenue concentration and AI competition concerns.
Professional services is the largest segment of SMB acquisitions — $40B+ annual transaction volume. IT services (MSPs, cybersecurity), management consulting, digital marketing agencies, and accounting/bookkeeping firms are the most active buyer markets. Agency pricing has compressed since 2022 as AI tools (ChatGPT, Claude) compete with basic content and coding work. High-value firms that combine strategic advisory with execution command premium multiples.
Contact-based value drivers — buyer due diligence essential.
Professional services firms are strong SBA candidates (approval 72–78%) when they show 2+ years of positive cash flow without owner-dependent revenue. Lenders look for: recurring client revenue (retainers), diverse client base (no client >20% of revenue), and documented contracts. Marketing agencies with high client concentration are hard to finance. IT MSPs with strong recurring MRR (monthly recurring revenue) command the highest valuations and easiest financing.
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Open Business Valuation Calculator →Owner dependency. In a consulting firm, if the owner IS the rainmaker (bringing in >40% of revenue through personal relationships), the business is unsaleable — the buyer is acquiring a job, not an asset. The fix: document client relationships to the business (not personal email/phone), have 2+ senior consultants or account managers who maintain client relationships, and build retainer contracts so revenue doesn't disappear when the owner steps back. Businesses that can demonstrate they can operate without the founder command 1–2× higher multiples.
Basic content, coding, and data analysis work has been commoditized by AI — this has compressed multiples for content marketing agencies, basic IT services, and bookkeeping firms by 0.5–1.0×. However, firms that use AI to scale delivery while maintaining strategic relationship depth are more valuable, not less. The firms getting hurt are those that competed on execution speed (coding mills, content farms) — strategic advisory, complex project management, and high-trust client relationships are still protected.
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