The MSP Market Today...
The managed services market continues to evolve. The cloud revolution, consolidation, horizontal to vertical specializations and increasing competition... the challenge is staying ahead of the curve. How long have you been on the MSP transformation treadmill? Over the past decade thousands of IT professionals have bought in to the managed services model and its promise of recurring revenue, explosive profits and growth. As an MSP, everything about the transition to managed services seems challenging:
- Getting the first few clients;
- Keeping them happy;
- Maintaining your monthly billing rate;
- And, of course, scaling your business!
Today, the majority of MSPs are:
- Less than 10 employees;
- Generating under $1,000,000 in recurring revenue;
- Experiencing limited growth, particularly in the current economy;
- Even regional MSPs have to now reinvent themselves for the cloud.
For MSPs the road ahead is clear:
- Keep doing what you are doing;
- Merge with a larger MSP;
- Sell your business.
Trouble is options 2 or 3 typically don’t exist for most MSPs…Until now.
The MSPXchange process leverages our proven MSP business and technology platform to provide MSPs with a path to monetizing their business. The first step for you as an entrepreneur is to make the self-assessment that merger or acquisition is a path you want to take.
Next is filling out a confidential interest form with some basic details on your business. From there, we will go through a more detailed evaluation process, including:
- Confidential Interest Sheet – MSP candidate completes.
- Interview - determine MSP candidate fit and preliminary valuation; LOI.
- Due Diligence Checklist – questionnaire to be completed by MSP.
- Customer List - analysis and interviews; contract analysis.
- Deal Structure – valuation, cash up-front, earn-out, key employee(s), timing.
- Customer Conversion – technology and account considerations.
- Onsite Visit – complete due diligence; new customer introduction kit.
- Legal – purchase and sale agreement for customer base.
This is not another MSP partnership. This is your last MSP partnership! Contact us to learn more.