MSP Valuation Drivers

Undoubtedly, there is some angst in the industry, as the Federal Reserve raises interest rates, which is intended to slow the economy and could impact corporate earnings. Yet at the same time, there is an increasing number of highly sophisticated private equity groups that are eager to buy MSP platforms (We are aware of more potential buyers with capital than ever before looking to buy MSPs. Private equity has a lot of committed capital, and it wants to deploy it into MSPs. In fact, the biggest problem is that there is a huge scarcity of attractive assets to buy– see ‘Data Signals’ Provide Best MSP M&A Targets for Private Equity for top ideas.).