Does EBITDA Matter for MSPs?

The term EBITDA is not something a lot of MSPs fullly understand or use regularly. As a financial tool, it is worth knowing how it is used and why. But, should you use EBITDA as a metric for managing your MSP practice? Maybe, maybe not.

To answer this question, we must define EBITDA, look at how it is used within general accounting, and more specifically how it is used within MSP M&A and investing. Only then can you know whether EBITDA is something you should use regularly as a guidepost for running your MSP practice.