Just five episodes ago in Episode 75, Daniel Welling helped us learn how to increase the value of your MSP especially in case you want to exit. So, this will be a second part of a trilogy episode with Daniel where the third one, coming up real soon is when we delve into how to buy an MSP. 

First and foremost, for those who haven’t listened to the previous episode, which I highly recommend you do, Daniel shares with us who he is, what he does, and who he helps. 

Kicking off the main discussion of the episode, I ask Daniel to share with us the high-level process of when people decide to sell their MSP business and also consider the emotions that come with it especially in getting your head in the right space to exit your MSP.  

Daniel says that there is a wave of emotions to be preparing for, most especially guilt and fear. 

There is a “remorse stage” which is mostly caused by the long sales process that normally takes time. You will feel like being in a waiting room for weeks and months during the process so it’s important to be logically ready for that, and then keep the emotions in check and balance them throughout the process. 

Daniel then drew out from his own experience and journey when he also sold his MSP, and he goes us through how handled the emotions during the “remorse stage” as he calls it. 

We then continued to tackle the process, after you’ve made the decision of selling your MSP business, I ask him about the first thing that’s needed to do. It is going to the market. Daniel mentions that this will go after establishing the value of the MSP business, as discussed in Episode 75, which is very important in knowing the deals that can be offered. 

There are a few ways of going to the market but the most common is going to a broker, or you can also do it yourself. Daniel then explains both ways and how they affect the process. 

Daniel and I then tackled on briefly about niche and due diligence. He then explains why due diligence is also very important and this is where you basically have to be prepared to support everything that you’ve said in the prior stages. 

Then we delved into what happens after due diligence and Daniel continued to explain the different types of transactions that would take place. He also introduces the share purchase agreement and explains what it is. He also talks about the roles that solicitors play in the process. 

We then moved on to talk about communicating with the staff, which can be very critical if you are not being careful since there are important things to consider to avoid jeopardising the whole sale, especially who to tell first and when to tell them. 

Wrapping up the episode, Daniel and I briefly talk about other different types of agreements that you may come across in the process. 

I hope you enjoyed this interesting episode. This is something we don’t normally talk about but we hope we have given you the value that you need to understand the complexity and critical points as you prepare to exit your MSP. 

 

If you want to continue the conversation or simply learn more about exiting your MSP, you can reach out to Daniel Welling in his LinkedIn here – https://www.linkedin.com/in/daniel-welling-54659715/  

You can also check out Daniel’s website here – https://www.wellingmsp.com/  

 

At IT Experts, we have years of experience helping IT & MSP Business of all sizes to leverage their talents and take back control so they can scale confidently.   

To connect with us and find out how we can possibly help, simply book an intro call straight into my diary here:- http://bit.ly/ite-introcall   

Alternatively, you can drop me an email at [email protected]   

Until next time, you look after yourself and I’ll catch up with you soon!