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.
