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MSP and VAR EBITDA Profit Margins: What Should They Be?

Answer: The typical IT service provider (MSP or VAR) has a EBITDA profit margin of about 7.3 percent. Top quartile IT service providers have an EBITDA profit margin of about 19.3 percent. Source: Service Leadership Inc., Sept. 2015. We’ve heard of some MSPs with EBITDA profit margins in the 25 percent or slightly higher range.

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