Podcast: M&A Secrets for MSPs – Maximize Value & Navigate Growth Podcast

The MSP M&A market is more competitive than ever, with high demand from buyers—including private equity firms and strategic acquirers. But what does this mean for MSP owners considering a sale? In this episode of Sunny’s Silver Linings Podcast, Hartland Ross joins IT By Design CEO Sunny Kaila to discuss the shifting MSP M&A landscape and what it means for sellers.

Key Takeaways from the Podcast:

  • Why MSP Owners Sell: Burnout, security concerns, retirement, and relocation are some of the primary reasons.
  • Market Trends: It’s a seller’s market, with buyers struggling to grow organically and turning to acquisitions instead.
  • Preparing to Sell: Increasing Monthly Recurring Revenue (MRR), securing multi-year contracts, and reducing customer concentration risk can significantly boost valuation.
  • Valuation Multiples: MSP valuations typically range from 3x to 8x EBITDA, depending on profitability, revenue structure, and business sustainability.
  • Setting Realistic Expectations: Sellers often overestimate their business value—actual valuation depends on multiple factors, including deal structure and buyer fit.

If you’re considering selling your MSP or just want to understand its worth in today’s market, this webinar is a must-watch.

Looking to explore your MSP’s valuation or discuss potential exit strategies? Contact us today for a consultation!

Podcast: What do you need to know before acquiring your first MSP?

The MSP acquisition landscape is hotter than ever, with more buyers than sellers and fierce competition for quality businesses. If you’re looking to grow through acquisitions, standing out requires more than just offering the highest price.

In the latest Technology Reseller News podcast, Hartland Ross joins Doug Green for an insightful podcast episode, diving into the complexities of acquiring an IT company or MSP.

Key takeaways include:

  • Define Your Acquisition Criteria – Knowing what you want (and don’t want) ensures you focus on the right opportunities.
  • Build Trust with Sellers – Sellers care about their employees and customers post-sale. Transparency and a clear transition plan make a difference.
  • Move Fast – Time Kills Deals – Slow responses and inefficient due diligence can cause sellers to walk away.
  • Understand Deal Structures – Earnouts, financing, and integration planning play a crucial role in post-acquisition success.

If you’re serious about MSP acquisitions, you won’t want to miss this discussion.

Need help navigating MSP acquisitions? Contact us to discuss your buying strategy!

Webinar: Panel Discussion with Erick Simpson and Rich Freeman on the Implications of Vendor Management on the Valuations of MSPs

Vendor relationships can make or break the efficiency and profitability of Managed Service Providers (MSPs). In our latest panel discussion, Harland Ross, Erick Simpson, and Rich Freeman dive into how MSPs can optimize their vendor management strategy to improve business valuations.

Topics covered include:

  • How many vendors should an MSP have?
  • Best of breed or all-in-one: The pros and cons of single-vendor suites (ecosystems)
  • Are there cases where having more than one vendor for the same service makes
  • sense?
  • How does vendor mix and selection impact valuation?
  • How to negotiate reasonable terms to avoid long term lock in?

Webinar: How to Calculate Adjusted EBITDA for MSPs

Here’s our detailed webinar on how to calculate Adjusted EBITDA for Managed Service Providers (MSPs), hosted by Devin Rose from The Host Broker. In this session, we dive deep into why Adjusted EBITDA is a crucial metric for MSP valuations, and how to accurately calculate it.

Key Topics Covered:

  • The significance of Adjusted EBITDA in MSP valuations.
  • Common adjustments to consider, including non-operating income, personal expenses, and owner salaries.
  • A step-by-step example using a fictional MSP’s profit and loss statement.
  • How Adjusted EBITDA impacts the valuation of your MSP.
  • Important considerations to ensure your adjustments are reasonable and credible to potential buyers.

Resources:

Webinar: SBA Loans for MSPs

Are you an MSP owner looking to expand your business, invest in new technology, or acquire another company? Navigating the financing landscape can be challenging, but SBA loans offer a powerful solution for Managed Service Providers (MSPs) looking to scale their operations.

The Host Broker Webinar Series presents: SBA Loans for MSPs

In this webinar, we are joined by Nick Padlo from Live Oak Bank to dive deep into the world of SBA loans, discussing how they can be leveraged to fuel growth for your MSP business. Whether you’re a seasoned entrepreneur or just starting, this webinar is packed with valuable insights to help you understand:

  • What are SBA loans: Learn the fundamentals of SBA loans, including the different types available and how they can benefit your MSP.
  • Eligibility Criteria: Discover the specific requirements to qualify for an SBA loan, and how to prepare your business for the application process.
  • Application Process: Step-by-step guidance on how to navigate the SBA loan application, including tips for maximizing your chances of approval.

Watch the recorded webinar today and start planning your next big move.

ExitCon 2024 4th Session – Post Close Success

The 4th session of ExitCon 2024 hosted by Devin Rose, with Guest Speakers:

ExitCon is an online event designed to provide MSP Owners with the knowledge and tools they need to plan a successful exit strategy. This conference features industry experts who will share their insights and experiences on navigating the complexities of selling an MSP.

The session focuses on strategies for achieving post-close success in MSP acquisitions, emphasizing employee retention, cultural integration, and maintaining customer relationships. Key points include the importance of clear communication, addressing employee concerns proactively, and aligning technology stacks to support long-term growth and integration.

Got more questions? Contact us now!

ExitCon 2024 3rd Session – Valuations

The 3rd session of ExitCon 2024 hosted by Hartland Ross, with Guest Speakers:

ExitCon is an online event designed to provide MSP Owners with the knowledge and tools they need to plan a successful exit strategy. This conference features industry experts who will share their insights and experiences on navigating the complexities of selling an MSP.

The discussion revolves around the valuation and market dynamics of MSP businesses, highlighting factors such as market consolidation, valuation metrics beyond EBITDA, and the importance of clear financial transparency and standardized accounting practices to attract potential buyers and optimize business operations. Key insights include the impact of acquisition trends and the necessity of preparing comprehensive financial documentation for effective decision-making and successful transactions.

Got more questions? Contact us now!

ExitCon 2024 2nd Session – Preparing an MSP for Sale

The 2nd session of ExitCon 2024 hosted by Hartland Ross, with Guest Speakers:

ExitCon is an online event designed to provide MSP Owners with the knowledge and tools they need to plan a successful exit strategy. This conference features industry experts who will share their insights and experiences on navigating the complexities of selling an MSP.

The discussion focuses on preparing an MSP for sale, emphasizing the importance of having long-term, stable client contracts and implementing best practices to maximize the business’s value. Key reasons for selling include focusing on another business, retirement, and burnout, while challenges such as ensuring cultural fit and maintaining transparent financials are highlighted. Proper due diligence and understanding the buyer’s strategy are crucial for a successful sale.

Got more questions? Contact us now!

ExitCon 2024 1st Session – Deal Process

The 1st session of ExitCon 2024, hosted by Hartland Ross.

ExitCon is an online event designed to provide MSP Owners with the knowledge and tools they need to plan a successful exit strategy. This conference features industry experts who will share their insights and experiences on navigating the complexities of selling an MSP.

The session discusses key considerations for MSP owners contemplating a sale, including reasons for selling, such as retirement and burnout, as well as the impact of COVID-19. It highlights the importance of setting expectations, understanding valuation, managing customer concentration, and documenting revenue trends. Additionally, the role of intermediaries in facilitating better buyer-seller matches and smoother transitions is emphasized.

Got more questions? Contact us now!

Podcast: What You Need To Know Before Acquiring Your Next Business

Our Team’s Hartland Ross recently joined Tim Fitzpatrick on the Realto Marketing podcast. In this engaging episode, Hartland delves into the complexities of M&A, offering invaluable insights for anyone considering buying or selling a business. Whether you’re a novice or an experienced professional, this podcast is a must-listen.

Key Takeaways from the Podcast:

1. Building Trust from the Start:

Establishing trust early in the negotiation process is crucial. Hartland emphasizes the importance of rapport-building from the first interaction, whether through Zoom calls or in-person meetings. This trust lays the foundation for a smooth transaction.

2. Effective Due Diligence:

The diligence process is where the buyer evaluates the opportunity. Hartland highlights that the speed and accuracy of information exchange can significantly impact the buyer’s confidence and the overall success of the deal.

3. Qualifying Opportunities:

Hartland advises buyers to focus on deal-killer issues that can make or break a transaction. Identifying these early can save time and resources for both parties.

4. Valuation Alignment:

One of the most common deal-breakers is a mismatch in valuation expectations. Hartland explains the importance of realistic valuations based on market standards and not personal financial needs or aspirations.

5. The Role of Professional Advisors:

Having the right legal and financial advisors familiar with M&A processes is essential. Hartland shares examples where incorrect advice from inexperienced advisors led to complications, stressing the need for specialized expertise.

6. Time and Deal Fatigue:

Prolonged negotiations can lead to deal fatigue, where parties lose motivation to close the deal. Hartland stresses the importance of sticking to agreed timelines and maintaining momentum to avoid this pitfall.

Hartland Ross’s insights are not only profound but also practical, providing a roadmap for navigating the often-turbulent waters of M&A. Don’t miss out on this opportunity to learn from one of the best in the industry.

Tune in to the full podcast episode here and elevate your understanding of mergers and acquisitions today!