IT & Software Services
Active
MSP Buy-and-Build: Metro Detroit / $509K LTM Adj. EBITDA
Michigan, United States
Asking Price-
Revenue$4,000,000
EBITDA$509,000
Cash Flow$509,000
Description
Founded in 2009 and headquartered in Novi, Michigan, the Company is a founder-led managed technology services provider serving small and mid-sized organizations across Metro Detroit, with an additional customer presence in Chicago.
The Company provides managed IT, cybersecurity, Microsoft 365 and software licensing, hosting and datacenter services, business communications, and project-based technology services. The founder is not looking to exit and wants to partner with a debt or equity investor to pursue an aggressive buy-and-build strategy across Michigan and the broader Midwest.
Core Platform – Standalone
• $2.35 million of LTM revenue
• Approximately $243,000 of reported operating profit
• Approximately 80% gross margin
• 106 client accounts billed during the first eight months of 2026
• 13-person team with an in-house help desk and 24/7 support availability
• Prior Chicago-area MSP acquisition completed with no reported customer losses
Identified Add-On – Standalone
The founder has identified a Southfield, Michigan-based provider of phone, data, infrastructure installation, and IT services.
• $1.65 million of LTM revenue
• Approximately breakeven reported operating performance
• $1.17 million of recurring phone and data revenue
• 181 client accounts billed during the first eight months of 2026
• Nine-person team
The add-on brings a sizable recurring customer base but limited current profitability. The core platform can introduce managed IT, cybersecurity, Microsoft 365, backup, hosting, and cloud services across those relationships while consolidating duplicative expenses.
Combined Economics
Following the acquisition, the platform would generate approximately $509,000 of LTM adjusted EBITDA. This excludes approximately $60,000 of identified annual facility savings, which would increase run-rate adjusted EBITDA to approximately $569,000 before cross-selling or pricing improvements.
We believe the platform should trade for approximately 6.0x to 8.0x adjusted EBITDA, implying approximately $3.1 million to $4.1 million of enterprise value.
Capital Partner Opportunity
A debt or equity partner can enter before the business reaches the scale typically targeted by larger private equity-backed MSP consolidators. Potential structures include senior or structured debt, preferred or common equity, minority growth capital, or control equity with meaningful founder participation.
The value-creation strategy includes:
• Complete the identified add-on
• Capture $60,000 of annual facility savings
• Cross-sell higher-margin managed services across 181 acquired accounts
• Centralize help-desk, billing, finance, purchasing, and administration
• Standardize contracts, pricing, and annual escalators
• Acquire additional MSP, cybersecurity, cloud, and telecom businesses
• Build geographic density across Michigan and the Midwest
The objective is to build a larger, institutionalized regional MSP that can ultimately be sold or recapitalized by a private equity-backed consolidator. A capital partner investing today can participate in the value created through integration savings, cross-selling, margin improvement, additional M&A, and increased scale.
Business listed by
The Advisory IB
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