A seller priced an MSP at $1.2M based on $325K of “recurring” EBITDA.

But:

❌ 83% of contracts were cancel-anytime
❌ Owner handled all escalations & major clients
❌ Licensing for RMM + security tools not transferrable
❌ No backup engineers, SOPs, or client portal

📉 True transferable free cash flow: ~$85K
🧮 Revised value: ~$520K

📌 MSPs need more than a client list—they need systems and people.