There's no published MSP multiple for the UK, and the global figures that exist describe larger disclosed deals, so they can't tell you what your business will sell for. How a buyer tests the revenue they're paying for is well documented, and billing hygiene is the quality of the records behind those tests. The scorecard below lets you rate your records against 12 checks a buyer's accountant is likely to run, and shows which to fix first.
In this article
The short version
- There's no published UK MSP multiple, and Aventis Advisors' global median of around 8.9x EV/EBITDA reflects larger disclosed deals.
- Billing records reach the price through how much revenue can be verified as recurring, the working capital peg and debt-like items such as deferred income.
- The scorecard rates 12 checks at 0, 1 or 2 each, and a check only scores 2 once it has been in place for twelve months.
- Fix the checks that take longest to show as a pattern first: the billing calendar, seat and licence changes, project billing and collection.
- The total measures how easily your revenue can be verified, and it doesn't convert into a multiple or a price.
What the market figures can and can't tell you
Few sources publish MSP deal multiples with data behind them. One that does is Aventis Advisors, an M&A adviser, whose own estimate from Mergermarket data is a median of around 8.9x EV/EBITDA across 120 MSP transactions worldwide, with a median deal size of $38.5m. That's an adviser's estimate of past disclosed deals. It's global, in dollars, and skewed towards deals large enough to publish their terms, which rules out most UK MSPs.
A median also can't tell you why one business sells for more than another. Growth, margin, client mix, contract terms and management depth all move the price, and no published study measures how much any single factor, billing included, moves a multiple. Use market figures as background for a conversation with your adviser, and spend your own effort on what a buyer will test directly.
How billing records reach the price
A buyer usually applies a multiple to adjusted EBITDA, then works down to what you receive through net debt and a working capital adjustment at completion. Your billing records touch three steps.
Adjusted EBITDA depends on how much revenue the accountant can verify as recurring. Clearly coded invoices that tie to contracts count; lines described as "adjustment" or billed months late are more likely to be read as one-off.
Working capital is compared at completion with a peg, usually a twelve-month average of your month-end position. Steady billing and collection keep receivables steady. Batch billing makes them swing, and a low month at completion can leave you short, which normally reduces the price.
Debt-like items include deferred income from annual invoices raised in advance, which buyers may deduct, and old debts, which may be provided against by age. Clean schedules keep the argument to the numbers.
A billing hygiene scorecard
Score each check 2 if it's been in place for the last twelve months and you can show the records, 1 if it's partly in place or recent, and 0 if it isn't. The maximum is 24.
| Check | Scores 2 when |
|---|---|
| 1. Contract coverage | Every recurring client has a current signed contract with term, notice period and price |
| 2. Price match | Invoiced prices and annual uplifts match the contract |
| 3. Billing calendar | All recurring charges are billed on the same day each month |
| 4. Seat and licence changes | Changes are billed in the month they happen |
| 5. Project billing | Projects are invoiced within days of completion or milestone sign-off |
| 6. Revenue coding | Managed services, projects, hardware and licence resale have separate codes, with no catch-all lines |
| 7. Customer records | One record per client, with renames and mergers noted |
| 8. Collection | Recurring clients pay by an automated method such as direct debit, each payment tied to an invoice |
| 9. Payment matching | No unallocated receipts or unexplained payments on account |
| 10. Aged receivables | Nothing over 90 days without a documented reason |
| 11. Credit notes | Every credit note has a reason and an approver |
| 12. Deferred income and commitments | Advance invoices are released on a schedule, and annual supplier commitments are listed with end dates |
Check 4 is easy to miss because suppliers bill on their own schedule. Microsoft's New Commerce Experience lets partners cancel licence-based subscriptions only in the first seven days of a term, so a seat you've committed to but haven't billed is a cost your revenue doesn't show.
Check 8 isn't a claim that direct debit raises value. A mandate is open-ended and the client can cancel it at any time, so it doesn't make revenue contracted. It gives the accountant a dated payment against a specific invoice, which makes invoice-to-cash testing quick, and one mandate can collect a different amount each month with advance notice, which suits per-seat billing.
How to score it and what to fix first
Run the scorecard with your bookkeeper or accountant, since several checks need an export from Xero or QuickBooks and a sample of invoices against contracts. Score strictly: if you'd need to explain it to a buyer, it's a 1. The total measures how easily your revenue can be verified. It doesn't convert into a multiple or a price.
Because buyers test the last twelve months, a check you fix today only scores 2 once a full year shows it. If a sale is possible within two years, start with the checks that take longest to show as a pattern: the billing calendar (3), seat and licence changes (4), project billing (5) and collection (8). The contract register, nominal codes and deferred income schedule are one-off jobs you can do in parallel.
Small teams find the monthly checks hardest to keep at 2. Adfin takes several of them off the list: it collects recurring fees by direct debit, including per-seat amounts that change each month, and reconciles every payment to its invoice in Xero or QuickBooks, which covers checks 8 and 9. For check 10, its Customer Agents chase overdue invoices over email, SMS or WhatsApp, send statements when a client goes quiet and can apply statutory late fees, all within rules you set and review, so your aged receivables don't depend on who had time that week.
Common questions
What multiple do UK MSPs sell for? There's no published UK MSP multiple. Aventis Advisors estimates a global median of around 8.9x EV/EBITDA for larger disclosed MSP deals, which can't tell you what a particular business will achieve.
Does billing hygiene change my valuation multiple? No published study measures that. It affects how much revenue a buyer can verify as recurring and how working capital and debt-like items are treated at completion.
Can I use the scorecard total to estimate what my MSP is worth? No. The total measures how easily your records can be verified, not value, which depends on growth, margin, client mix and the buyer's plans.
Which checks matter most before a sale? The ones that need a year to show as a pattern: a fixed billing calendar, prompt billing of seat changes and projects, and automated collection of recurring fees.
How often should I run the scorecard? Quarterly works for most MSPs. It's quick once you have the exports and shows whether monthly habits are holding.
Does direct debit make my revenue contracted? No. A mandate can be cancelled at any time. It evidences that clients paid on time, while the contract evidences the commitment.
Sources
- Aventis Advisors - MSP valuation multiples (accurate as of September 2026) https://aventis-advisors.com/msp-valuation-multiples/
- Grant Thornton Switzerland - Understanding quality of earnings: a critical component of M&A due diligence (accurate as of September 2026) https://www.grantthornton.ch/en/insights/quality-of-earnings-in-ma-transactions/
- ICAEW Corporate Finance Faculty and Grant Thornton - Completion mechanisms: determining the final equity value in transactions (accurate as of September 2026) https://icaew.com/-/media/corporate/files/technical/corporate-finance/guidelines/icaew-completion-mechanisms-v2.ashx
- Microsoft Learn - New Commerce Experience cancellation policy (accurate as of September 2026) https://learn.microsoft.com/en-us/partner-center/customers/new-commerce-cancellation-policy
- Adfin - Credit control (accurate as of September 2026) https://www.adfin.com/credit-control
