Chinook Industry Spotlight: Managed IT Service Providers Q1 2026

  • Continued Growth Momentum for Top MSP – Industry indicators continue to show strong demand for managed services and managed security, supporting growth for scaled managed service providers and well positioned specialists

  • AI Operations as Standard – MSPs are embedding AI-driven operations and automation into service delivery to reduce ticket volume, improve uptime, and protect margins as clients expect more proactive support

  • Water Infrastructure Face Funding Gap – Despite the overwhelming need for continued investment in U.S. water infrastructure, there is insufficient funding to meet the needs of critical projects, posing a headwind to manufacturers and service providers
  • Managed Security Expands – Buyers are prioritizing MDR (managed detection and response) and managed security partners that go beyond alerting into continuous exposure reduction, stronger integrations, and clearer service transparency

  • Financial Operations and Cost Optimization – With cloud spend under scrutiny, MSPs are increasingly hired to optimize and govern hybrid and multi-cloud environments with cost controls, performance tuning, and workload rationalization

  • Platform Consolidation Continues – M&A and roll ups remain active as buyers favor MSP platforms that scale efficiently and differentiate through automation, repeatable IP, and standardized delivery

About Chinook Capital Advisors:

Chinook Capital Advisors, based in Kirkland, WA, is a leading M&A advisory firm serving the needs of Pacific Northwest business owners. We help businesses prepare for and execute business ownership transition events. Our expertise includes sell-side advisory/seller representation services, recapitalizations, advisory board/transaction preparation services, and other services including business valuation and debt advisory. Chinook serves many of the key industries that drive the Pacific Northwest economy, including manufacturing, distribution, business services, technology, healthcare products & services, and consumer products & services. Chinook Capital Advisors is a member of the Alliance of International Corporate Advisors. AICA is a global network of middle market M&A advisory firms that provide clients with access to buyers, investors, and acquisition targets around the world. We welcome inquiries from business owners wanting to discuss business valuation, M&A market updates, or how to build value towards a future exit or recapitalization.