Top 10 Trends That Shaped the MSP Industry in 2025

Blog by Ben Greenberg, VP of Corporate Development at IT Solutions
If you’re considering exiting your business or are navigating the challenges of growing your MSP, we invite you to connect with Ben.

With another year quickly approaching, I can’t help but look back at where the year began. Over the course of the year, new opportunities and challenges have presented themselves for the MSP industry. I thought it would be fun to look back and present my thoughts on the Top 10 trends that drove the MSP Industry in 2025, for both M&A and non-M&A. In no particular order.

M&A platform consolidation: 2025 saw more platforms combine than any other year, showing signs that investors continue to believe in the strength of the MSP industry and that scale (done correctly) does have value.
CMMC: This four-letter acronym took the government-exposed SMB market by storm in 2025, forcing even the smallest MSPs to understand how they can service this market demand. Taking security services to a whole new level. If anything, it looks like this trend will accelerate into 2026.
Agentic AI: I would challenge anyone to find a more used buzzword in the last year. It’s an exciting time for MSPs as most are just scratching the surface on how they can use AI to streamline service delivery and add value to their clients.
Flight to quality in M&A valuations: We saw acquirers more aggressively place a premium valuation on MSPs with strong fundamentals, demonstrated organic growth, scalable operations, and strong client dynamics.
Automation: While sometimes used in conjunction with AI, what we really noticed is MSPs using automation to be able to deliver routine tasks more efficiently, reducing things like time on ticket, dispatching, or onboarding. The options are endless, but focusing on ROI is key.
Clients looking for AI solutions: As SMB’s begin to read more about the power of AI, they turn to their MSP’s (as they should!) for guidance, this has forced most to think about how they can service the client demand, however we’ve yet to see the masses truly deliver around managed AI at this point, an exciting frontier for 2026+.
Verticalization: By focusing on specific industry segments, MSPs have learned they can better meet increasing client demands with a deeper expertise, as well as differentiate themselves in a crowded market.
More educated sellers: We’re seeing sellers do more diligence on the types of buyers and are more focused than ever on finding the right partner to meet ownership goals, vs casting a wide net. Personally, I’m seeing sellers ask excellent questions when we have initial discussions, which is always enjoyable.
Strategic support: In an ever-changing and more complex technology environment, it’s almost table stakes to have a role focused on strategic guidance for each client. For the subset of MSPs who did not, we saw that quickly change.
Hiring ability: The times of the Great Recession are definitely over. This year, we saw greater ability to hire strong talent as the labor market has eased and people are eager to join the exciting IT services segment.
Overall M&A acceleration: The pace of smaller MSPs looking to exit in 2025 continued to accelerate, with overall demand remaining strong as market consolidation continues and investor interest remains high for well-operated MSPs.

On a personal note, THANK YOU to all the amazing people I’ve met over the course of the year. The industry is full of incredible individuals, and I’ve learned more than I could have ever imagined from each of you.

And yes, there are 11 trends here, not 10. Why not?

Unlocking growth through M&A presents unique opportunities and challenges. Whether you’re planning your next acquisition or considering selling your business, we’re here to help your MSP thrive.

Five Essential Questions Every MSP Seller Should Ask Prospective Buyers

As someone who’s witnessed countless MSP owners navigate the M&A process, I’ve noticed sellers often overlook critical questions to help understand if a buyer may be the right partner for them. Here are five questions I suggest every MSP seller should ask a prospective buyer, and why the answers matter.

1. What Is Your Long-Term Vision for the Business?

Too often, sellers get caught up in the numbers and overlook the bigger picture. This question is a litmus test for the buyer’s depth of understanding and commitment to building value. A buyer who can clearly articulate plans for organic growth, investments in people and systems, and an appreciation for company culture is far more likely to be a good steward of your business.

If the answer feels vague or purely financial, it’s a red flag. Look for signs that the buyer understands the road ahead: Will they invest in developing talent? Are they planning to expand service offerings or geographic reach? Do they value innovation in an ever-changing MSP world? This question also provides insight into cultural alignment, which can make or break a successful integration.

2. What Is the Timeline for the M&A Process, and How Successful Have You Been at Sticking to It?

Ask the buyer to outline their typical M&A process, including major milestones, due diligence phases, and closing dates. More importantly, ask them how often they’ve actually met these timelines in previous deals.

If a buyer routinely misses deadlines or glosses over the details, sellers should proceed with caution. Delays can cost you money, create uncertainty for staff and clients, and signal deeper issues with the buyer’s organizational abilities. A qualified Buyer will have clear processes and a proven track record of executing as promised and within 60 days post Letter of Intent (LOI).

3. What Do Your Post-Close Communication and Integration Plans Look Like?

Successful deals don’t end at closing; they begin there. Sellers should press buyers for a comprehensive communication and integration strategy that starts well before the ink dries. Ask about a dedicated integration team and ensure a focus on both client and employee success.

Furthermore, ask the buyer how they plan to inform and engage your employees and clients post-close. Are they proactive in addressing concerns? The best integration plans are transparent and empathetic—focused not only on operational efficiency but also on cultural cohesion and retention.

4. How Will the Deal Be Funded and Structured?

The structure of your deal has direct implications on risk, complexity, and your ultimate payout. Sellers should insist on clarity regarding funding sources (cash, debt, equity, seller notes) and deal structure (asset or stock purchase, earnouts, holdbacks, etc.).

Complex funding mechanisms or uncertain sources create risk. The best deals minimize risk and maximize simplicity. It’s always best to review with an experienced M&A attorney prior to signing a Letter of Intent (LOI).

5. What Is Your Track Record?

Finally, history is often the best predictor of future behavior. Ask the buyer to describe their track record from several angles:

Deal Completion: How often have they closed deals on the terms initially proposed under the LOI?
Employee Retention: What are their development opportunities and how do they foster a positive culture post-acquisition?
Client Retention: How do clients fare after the deal, and what type of support do they receive?
Seller Satisfaction: How do sellers feel after selling to the prospective buyer? Ask for references to meet with, prior to signing an LOI

By asking these five questions, sellers can better assess a buyer’s intentions, capabilities, and suitability. Remember, the right buyer will welcome your questions and provide honest, thoughtful answers. When sellers and buyers start from honest conversations, it opens the door to partnerships that go beyond the deal and deliver lasting value.

Unlocking growth through M&A presents unique opportunities and challenges. Whether you’re planning your next acquisition or considering selling your business, we’re here to help your MSP thrive.