If you are a new listener, I briefly mentioned the two pillar episodes that make this a brilliant trilogy series which are Episode 75, where we talk about how to increase the value of your MSP and Episode 80, the dos and don’ts when you want to exit your MSP. What a journey it has been indeed. 

As usual, again just for the new listeners who have yet to keep up with this series, I asked Daniel to explain briefly who he is, what he does, and who he helps. He shares his experience in the area of buying and selling of MSP business. 

Kicking off this value-loaded episode, I asked Daniel first what is one’s purpose of buying an MSP. Daniel says that it’s because of the assets, primarily the customers and staff, and secondary to that would be the intellectual property, processes, and reputation, although it’s a case-to-case basis. He then explains why these factors matter. 

Daniel and I briefly weighed in on an MSP’s value before the sale and we then discuss the initial steps in the process of actually buying an MSP. Daniel reminds us that first of all, this is a sales process, and you need to approach it in the same way as if you are acquiring clients. 

Establish the target market. Profile and understand the target market. Then build the relationship with the target market. Those are the first things first. 

Daniel then moves on to explain a little bit more specifically this process. 

Just out of curiosity, I asked Daniel if there are brokerage services for this kind of activity in the MSP space. He said not quite but explains more on what he does that is similar to that service. 

We both then tackled whether it’s best to reach out to someone like Daniel to ask for help when you want to buy another MSP or would it be better to “DIY” and build that relationship yourself. Daniel says you have really got to do both for more achievable sale. He also discusses the benefit of each option and how more beneficial it is to do both. 

Now you’ve got the MSP that you want to buy, we then talk about the next step to do and how long does it really takes. Daniel notes that it can take as quick as a couple of weeks or as long as a couple of years. Because then again, it’s a sales process. 

Take your time to properly assess and understand the opportunity. 

Daniel then takes us through the process and talks about the important agreements and planning that the buyer and seller will have to make. 

Wrapping up this episode, Daniel and I discuss funding. We talk about the common ways of funding an MSP purchase. And according to Daniel, of depends on the size of the transaction. It can go from personal funding to debt funding to equity funding, which then Daniel explains each kind. 

This concludes the trilogy series with Daniel Welling that surround on MSP valuation, selling, and buying. I hope you’ve taken lots of value from these episodes. You can listen to the first and second parts below: 

• Episode 75 – How to Increase the Value of Your MSP 
• Episode 80 – Preparing 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 businesses 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!