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.
“Don’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.”
– Joanna Mirov, Senior Advisor M&A, Ntiva
“The easiest adjustments you can make to get the most value out of your MSP are to increase your prices by 10-30% (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
“Study hard; this is probably the most significant transaction you will ever be a part of and there is so much to learn.”
– Josh Kotler, Managing Partner, Sansom Street Capital
“Hire an advocate—one who has been there at least 10 times before—and know your value.”
– Paul Cissel, CEO, Growth Caddie, and TMT Expert in Residence
“Culture matters. Your business needs to stay intact after the transition to the new owners for you both to realize the expected return. Prioritizing culture will allow that to happen.”
– Amy Babinchak, Managing Partner, Sell My MSP
Learn more about how mismatched culture can sour an M&A deal here.
“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
“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
“Be 100% sure—without a shadow of a doubt—that you want to sell. Then start preparing the company for that sale.”
– Sitima Fowler, Founder & Investor of Capstone IT, Iconic IT, and Integris
“If you have any customers that make up more than 10% of your total revenue, get at least a 3-year agreement in place—before talking to any potential acquirers.”
– Tom Glover, CRO, Responsive Technology Partners
“Talk to everyone calling you to determine the best buyer for your business. Hire an advisor to help guide you through the process.”
– Tom Andrulis, CEO, Intelligent Technical Solutions
“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
“Look for a partner that believes in your vision—one who understands that their success ultimately lies in ensuring the long-term safety, security, and success of not only your business, but of your customers.”
– Tim Wood, Founder, Heckens & Wood
“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
For more M&A advice, check out these 7 reasons why M&A deals fall apart.
