MSP buyers are active, and most of the businesses we sell are IT and managed services companies. The owners who get the best outcomes don't just decide to sell. They prepare, on purpose, with a plan. These are the ten lessons we see make the difference.
- Know your number before a buyer tells you. A rule-of-thumb multiple isn't a valuation. Start with a detailed one: your financials rebuilt the way buyers will read them, what drives your value, and what buyers would pay today.
- Find what's holding your multiple back. The valuation shows which factors move your number: recurring versus project revenue, contracts, client diversity, how much depends on you, your team, and the quality of your financial records. Now you know where to focus.
- Build a plan around your timeline. Sell now, or follow a plan that fits your goals. It might raise the value of the business, or get it ready to sell at a set date. We review the plan with you every six months and revalue the business every twelve, so you can see it working.
- Grow recurring revenue on purpose. Moving project clients onto managed agreements is often the biggest lever an MSP has. Your plan sets the target, and each review measures the progress.
- Don't let one big client stop you. A large client doesn't have to kill a deal. How the deal is structured (how and when the price is paid) can account for it. We help you set it up so the sale still works.
- Keep your books current, all the way to closing. Buyers price what they can verify. We review and clean up your financials before going to market, and keep them current through the whole transaction. Stale numbers are where deals get renegotiated.
- Make the business run without you. Buyers pay more when the company doesn't depend on its owner. Your plan identifies what needs to shift, and the reviews keep it moving.
- Put more than one buyer at the table. One interested buyer isn't a sale. We personally reach hundreds of qualified buyers, and offers come in by a set deadline, so you compare them side by side.
- Let the best terms win, not just the highest number. You meet the finalists, they review detailed financials, and they submit letters of intent by a second deadline. That leverage protects the price and the terms. On average, about 90% of the price is paid at closing.
- Plan the close and the handoff. From a signed letter of intent, closing usually takes about 90 days. We manage due diligence and the purchase agreement, and if a buyer walks we go back to the runners-up. Most owners then help with a transition of three to six months.
Start with the valuation. Whether you're selling now or in a few years, the first step is the same: a confidential valuation. There's no fee for the valuation, and no obligation.