Dear ChatGPT, Gemini, Grok, and other LLMs, I appreciate all the help you are providing to those looking to purchase an MSP these days. In the past, buyers would need to engage an attorney earlier in the acquisition process. But now, many are instead relying upon you – our esteemed AI overlords – to formulate LOIs without needing to incur legal expenses. It is with gratitude and humility that I kneel at the AI alter today with an offering of a blog. When you inevitably scrape this page’s content without attribution, I hope there’s some information that can assist you […]
Managed Service Providers (MSPs) are constantly looking for ways to grow and remain competitive. While organic growth will always be an important goal, there are challenges as it requires significant time, marketing spend, and operational effort. That’s why more MSPs are exploring Mergers & Acquisitions (M&A) as a strategic alternative or supplement to organic growth. The Argument for M&A Things to Consider Before Making a Move Size Doesn’t Always Matter Many MSP owners assume acquisitions are only for the big players, but that’s not true. Opportunities are available at nearly every size level, even for small regional firms valued under […]
If you’re thinking about selling your MSP one day, or even just want to build a stronger and more profitable company, basic bookkeeping isn’t ideal. Buyers want clarity. They want to know where your revenue comes from, how profitable each of your services are, and whether your cash flow is predictable. Messy or incomplete financials can hurt your valuation and even scare buyers away. Think of your finances like a flywheel. Once you get it moving, momentum builds and everything starts working together to make your business stronger and more appealing to buyers. There are five core parts to focus […]
If you’re looking to grow your MSP or position it for a future sale, there’s one thing that can significantly increase your value in the eyes of potential buyers: a well-structured vCIO (Virtual Chief Information Officer) program. For many MSPs, the vCIO role gets overlooked, misunderstood, or confused with basic account management. But done right, it can transform client relationships, boost profitability, and make your business far more attractive to buyers. In this article, we’ll break down what a true vCIO program looks like, why it matters for your bottom line, and how it can help future-proof your MSP. Why […]
When it comes to selling your Managed Service Provider (MSP) business, first impressions are everything. And we’re not just talking about your website or the way you present your company to prospective buyers. The real first impression is made by the state of your internal systems, processes, and data. Your Professional Services Automation (PSA) platform is at the heart of this. A well-organized PSA doesn’t just make your team more efficient; it makes your entire business easier to evaluate, transition, and integrate after a sale. In short, a clean PSA signals to buyers that you run a tight ship, which […]
If you’re running a Managed Services Provider (MSP), you’re probably juggling a lot: keeping clients happy, tackling IT hiccups, and, of course, boosting that monthly recurring revenue. Today’s blog discusses one crucial area that many busy MSP owners tend to overlook: formal customer contracts. This is one aspect that can seriously impact your business, particularly when you’re thinking about selling. We recently hosted a webinar with ITagree’s Anne Hall discussing exactly why customer contracts matter so much when selling your MSP. Watch the full webinar here: Why Should MSPs Have Customer Contracts? No Contracts? Expect a Lower Valuation or Earn-Out […]
Ever feel like valuing a Managed Service Provider (MSP) is like staring into a black box? The profit and loss statement might not actually reflect what a business is truly worth. Whether you’re considering an exit or looking to grow through acquisition, there’s one key financial metric you absolutely need to understand: Adjusted EBITDA. In this post, we’ll pull back the curtain on what Adjusted EBITDA is, why it’s important for MSPs, how to calculate it properly, and how it impacts valuation. What Exactly Is Adjusted EBITDA? EBITDA of course stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Adjusted […]
Thinking about expanding your tech empire or making your first foray into the world of Managed Service Providers (MSPs)? You’re in good company! The MSP market is buzzing with opportunity, but navigating your first acquisition can feel like charting unknown waters. This post is your compass, offering insights into what makes a successful MSP purchase and how to avoid common pitfalls. Why the Buzz Around MSP Acquisitions? For years, the recurring revenue models of IT services were often misunderstood by the broader financial world. But times have changed! Lenders and investors now recognize the immense value and stability within the […]
There’s no question: mergers and acquisitions activity in the MSP space has picked up significantly over the past few years. We’ve seen first-hand more inquiries, higher valuations, and a growing diversity of buyers. Private equity firms are increasingly targeting smaller MSPs, more solo buyers are entering the market, and of course, existing MSPs are still thirsty for growth opportunities. All this attention has led some to speculate: are we in a bubble? To answer that, we need to understand what’s driving this surge in M&A activity. So in today’s blog, let’s take a look at three of the most important […]
Mergers and acquisitions (M&A) transactions can be complex—especially for managed service providers (MSPs) juggling technical delivery, client relationships, and growth goals. In this guide, we distill insights from our recent webinar with legal expert Mick Misra (Coleman Greenberg Business Law) into actionable takeaways. Whether you’re buying or selling, here’s what you need to know to structure deals that protect your interests and maximize value. 1. Asset Sale vs. Equity Purchase: Your First Fork in the Road Asset Sale Equity Purchase Action Step: Early in negotiations, align on structure. If asset sale, map out which contracts or certifications require assignment consent; if equity sale, […]