When Buyers Discount MSPs With One Big Customer

This article advises MSPs on mitigating customer concentration risk to improve M&A outcomes, noting buyers penalize or walk away when a single client exceeds 20–30% of revenue. It details valuation multiples tied to concentration thresholds, explains why buyers prioritize risk over perceived loyalty, and recommends a multi-year diversification plan across both customer count and industry sectors to build resilience and command higher EBITDA multiples.