The billable work is what you see first, but the real value sits in managed services contracts that renew at 90 percent or better and a delivery team that handles clients without the founder on every call.
What to know about buying an IT consulting business
How IT consulting businesses are valued
Asking prices are set as a multiple of earnings: 3x–8x annual profit, depending on recurring contracts, team, and how hands-off the business runs.
Where you land in that range depends on how much revenue comes from contracts that renew every year versus one-time projects, and whether your team delivers the work without you being involved in every engagement.
Contracts that renew year after year
Security clearances and certifications
A team that runs things without you
Your own tools or software
What buyers of IT consulting businesses look for
Larger IT services companies looking to add your capabilities or expand into your market
Managed services providers or consulting firms adding specialized skills like cybersecurity, cloud, or AI
Companies from related industries like staffing, telecom, or software looking for a services business
Experienced operators looking for a profitable business with recurring revenue that runs without the owner
The first questions buyers ask:
Financials. Can you break out services margin vs. pass-through tools, licenses, cloud spend, and reimbursables?
Managed Scope. Are your managed services real managed services, or just a bucket of hours? What’s included, and what triggers extra billing?
Owner Dependence. What happens to the business when you stop being the escalation point?
Closed deals
Rejigg IT consulting deals closed
Across 42 closed deals on Rejigg, the median time from first pitch to close is 177.5 days.
Practical guidance from hundreds of real acquisition conversations.
Managed services contracts
Ask what percentage of annual revenue comes from managed services versus project work.
Look at renewal rates over at least three years — firms above 90 percent are meaningfully different to own than those at 70.
Multi-year managed services agreements that renew reliably are the highest-quality revenue in this space and the most important number to understand early.
Firms with more than half their revenue under recurring contracts are easier to finance and carry less volatility than project-heavy shops.
A team that delivers without the founder
Ask what the founder does in a typical week and what would change if they stepped back.
Project leads and account managers who handle client work and troubleshoot issues independently are what make a firm transferable.
If the team already runs most client engagements on their own, you're looking at a real business rather than a personal practice.
Certifications and clearances
Ask for a list of all certifications and clearance levels currently held by employees.
Staff with security clearances, AWS or Microsoft certifications, or specialized credentials create advantages that took years to build and protect pricing from lower-cost competitors.
Find out which credentials transfer with the business versus attach to individual employees who could leave.
Client concentration and loyalty
Ask about the tenure and growth trajectory of the top five clients.
Clients who have expanded their engagements over multiple years are a strong signal of quality.
Ask what percentage of revenue comes from the top client alone — anything above 25 percent is worth understanding in detail.
Proprietary tools or software
If the business has built its own tools or packaged offerings, confirm who owns them outright.
Homegrown software adds a revenue stream that scales without adding more billable staff.
Ask how any proprietary tool is currently monetized and whether it's been sold to clients outside the firm's core managed services base.
Valuation
What Should You Expect to Pay?
3x-5x
SDE
Owner-involved, with project revenue mix or founder-dependent client relationships
4x-8x
EBITDA
With managed services contracts, technical team, and documented client management
Recurring managed services revenue and a delivery team that operates without founder involvement are the two factors that most reliably push valuations toward the higher end of the range.
What drives a premium
Multi-year managed services contracts with renewal rates above 90 percent
Staff certifications and security clearances that open specialized market segments
Project leads and account managers who own client delivery without founder involvement
Proprietary tools or software that generate recurring revenue independent of billable hours
How do I contact the owner of a business I found on Rejigg?
Create a free Rejigg account; owners, and the brokers who run some sales, only hear from buyers through the platform. Open the listing to see the full profile: city, team size, financials, what is for sale, and the reason for selling. Sign Rejigg's standard Fee & Confidentiality Agreement for that business; it is the same form for every deal. Verify your phone, then send your pitch from the listing. Replies, meetings, and documents all run through Rejigg.
Can I email Rejigg to get introduced to an owner?
No. Rejigg does not forward emails to owners or brokers, so a note to support@ or hello@ with a listing link will not reach them. Create a free account, open the listing, sign the agreement for that business, verify your phone, and send your pitch; that reaches them in a few minutes.
Can you break out services margin vs. pass-through tools, licenses, cloud spend, and reimbursables?
Buyers pay for profit from delivery, not for low-margin pass-through that inflates revenue. Clean breakouts also show whether your managed services margins hold up after tool costs per user, security tooling, and the unbilled cleanup work that sneaks into “support.” When the buckets are mixed, buyers usually haircut the price or add earnouts to protect themselves.
Are your managed services real managed services, or just a bucket of hours? What’s included, and what triggers extra billing?
Recurring revenue gets valued higher when the scope is written down and the work stays inside that scope most of the time. Buyers are trying to predict what happens when the founder stops doing after-hours rescues, freebies, and “just take care of it” work. Loose scope usually shows up as lower margins and higher churn risk after close.
What happens to the business when you stop being the escalation point?
In IT consulting, owner dependence often shows up as escalation dependence. Buyers want to see a real system for technical escalation, account decisions, pricing exceptions, and vendor relationships that does not run through the founder. If it’s unclear who owns what, buyers usually ask for a longer transition and add deal terms that hold money back.
How exposed are we if two people quit, and who are the must-keep engineers or architects?
Skill concentration can sink an IT services deal fast. Buyers look for single points of failure: the only person who knows a client environment, the only admin on critical systems, or the only engineer the client trusts. When those bottlenecks exist, buyers price in retention costs and expect some disruption risk.
How do your MSAs and SOWs handle termination, renewals, scope, change orders, and liability?
Buyers are trying to understand how quickly revenue can disappear and how expensive a dispute could get. In IT consulting, the trouble spots are vague scope, weak change control, short termination windows, and liability that does not match the work. This is usually fixable, but it changes price and the legal terms buyers ask for.
What security, privacy, or compliance obligations follow the work, and what happens when a laptop is lost or credentials are compromised?
The buyer may inherit real security responsibility, especially if your team has privileged access or touches regulated data. They want to see basics that match the risk: access control, offboarding, incident handling, and insurance. If the answer is hand-wavy, buyers assume there is hidden exposure they will own on day one.