M & A SERIES CONT .
Thinking About Selling Your MSP ? Read This Advice First !
We reached out to industry superstars and M & A experts who ’ ve been right where you are . Here ’ s the key pieces of advice |
these experts — both buyers and sellers — have for MSPs who are considering selling their business . |
’ t be afraid to start having the exit conversation and understanding your options way before you want to sell . An educated seller navigates the exit with confidence , turning uncertainty into success . |
Look for a partner that believes in your vision — one who understands that their success ultimately lies in ensuring the longterm safety , security , and success of not only your business but of your customers . |
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— Joanna Mirov , Senior Advisor M & A , Ntiva |
— Tim Wood , Founder , Heckens & Wood |
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If you are thinking of selling your business , you must think not only of your personal ‘ why ’ but of the ‘ why ’ for your employees — the team that got you to this point . When the transaction happens , will they be able to go home to their family or partner on day one and say , ‘ This is good for me , our family , and our future ’? Money is important , but looking in the eyes of your team and knowing , without a doubt , that you did right by them is even more vital .
— Neil Medwed , VP Corporate Development & M & A , Meriplex
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If you have any customers that make up more Be 100 % sure — without a shadow of a than 10 % of your total revenue , get at least a doubt — that you want to sell . Then start
3-year agreement in place — before talking to any preparing the company for that sale . potential acquirers .
— Sitima Fowler , Founder and Investor – Tom Glover , CRO , Responsive Technology Partners of Capstone IT , Iconic IT , and Integris
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The easiest adjustments you can make to get the most value out of your MSP are to increase your prices by 10 to 30 %— your net EBITDA gain will far outpace any customer loss — and get customers under multiyear contracts . Additionally , the number one issue I see in closing deals is MSPs ’ contracts that require consent to be assigned ; make sure your contracts can be assigned without consent .
— Will Slappey , CEO , IT Voice
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Hire an advocate — one who has been there at Culture matters . Your business needs to stay least 10 times before — and know your value . intact after the transition to the new owners for you both to realize the expected return .
— Paul Cissel , CEO , Growth Caddie , Prioritizing culture will allow that to happen . and TMT Expert in Residence — Amy Babinchak , Managing Partner , Sell My MSP
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Get your financials in order — this means doing proper accrual accounting and minimizing the amount of personal expenses you have running through the business . If accounting isn ’ t your area of expertise , hire a controller or an outsourced accounting firm to help guide you . Having clean financials will demonstrate operational maturity to a buyer , which will lead to a higher valuation and a smoother deal process .
— Ramsey Sahyoun , Co-Founder and M & A Partner , Evergreen
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Know what you , as the MSP owner , want to do after the transaction . Use that clarity to select the right partner to help you achieve your goals . The sale process shouldn ’ t be a one-way street . You have every right to learn as much as you reasonably can about potential buyers , so you partner with the one that helps you achieve all your goals .
— Christopher Vollmond-Carstens , Chief M & A Officer , Ntiva
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Look beyond the ‘ highest bidder ’ and know not only what you want — or need — from your buyer in terms of investment dollars but also what you want for the future of your business . Having an aligned vision and the commitment to achieve it is the foundation for success .
— Michael Williams , Founder and COO , FortifyIT
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