2026 M&A outlook for Microsoft partners.

What will drive Microsoft partner valuations in 2026? In this episode, Tim Mueller of IT ExchangeNet breaks down the shifting M&A landscape — from AI monetization and cybersecurity premiums to vertical specialization and recurring revenue. With private equity sitting on nearly $1 trillion in dry powder and aging owners creating a “silver tsunami,” the next 12–24 months could present major opportunity. If you're thinking about growth, acquisition, or exit, this conversation will help you prepare strategically and position your firm for maximum value.

Top 5 Intriguing Takeaways for IAMCP Partners

1. Fewer Deals, Higher Valuations

Buyers are selective — but they reward well-run Microsoft practices.

2. AI Strategy Is Now a Deal Filter

If you can’t clearly explain how AI drives revenue, buyers may pass.

3. Vertical Specialization Commands Premiums

Niche down. Industry depth reduces buyer risk and increases multiples.

4. Recurring Revenue + Contracts = Higher Multiples

Multi-year Azure and managed services agreements significantly improve valuation.

5. The “Silver Tsunami” + PE Dry Powder = Seller’s Market

Aging owners and capital pressure create a strong M&A tailwind into 2026.

Guests:

Tim Mueller, M&A Managing Partner at IT ExchangeNet

Personal LinkedIn: Tim Mueller

Company LinkedIn: IT ExchangeNet

Company URL: It Exchange Net | Website

Host:

Anthony Carrano, Managing Partner at Dunamis Marketing

LinkedIn: Anthony Carrano

Company: Dunamis Marketing | Website

Notable Quotes:

•  “If you cannot articulate where you see your business profiting and growing with AI, you'll likely be a hard no for buyers.”

• “Two of the sexiest words in our industry are recurring revenue.”

• “It mitigates risk for the buyer when you go from being a generalist to a specialist.”

• “The business at a certain epoch of time will be more valuable in the hands of the buyer than it ever will be in the seller.”

• “If we’re not incredibly successful over the next 18–24 months because of this tailwind, it’s our own fault.”

Chapters

00:00 – Welcome & 2026 M&A Outlook

01:00 – Illuminate EMEA & AI Momentum

03:20 – Macroeconomic Forces Shaping 2026

06:27 – AI Valuation Impact

09:38 – Cybersecurity + Cloud Premiums

10:51 – The Power of Vertical Specialization

13:32 – Recurring Revenue & Multi-Year Contracts

17:24 – The Silver Tsunami

19:41 – New Valuation Drivers

23:09 – Preparing to Sell

25:34 – Why 2026 Looks Bullish

28:54 – The One Thing to Do Today

31:03 – Readiness Assessment & Next Steps