In this informative session, Adam and Dan delve into the intricate world of mergers and acquisitions (M&A) specifically tailored for Managed Service Providers (MSPs). Recorded live at the MSP Show 2025, returning for a second year to the London exhibition, the duo builds upon last year's discussion on valuations and management accounts to explore negotiation tactics and heads of terms. They aim to share insights on due diligence and deal completion in future sessions. The script includes a unique role-play segment illustrating a negotiation between a buyer and a seller, offering viewers a realistic glimpse into the M&A process. Throughout the session, the importance of preparation, trust, financial clarity, and strategic alignment is emphasised. The session concludes with an interactive Q&A segment addressing key issues like market trends and seller expectations.

00:00 Introduction and Welcome

01:16 Background and Experience of the Speakers

02:15 Role Play Setup: Buyer and Seller

04:04 Seller's Business Overview

09:41 Buyer's Business Overview and Preparation

13:46 Heads of Terms and Valuation Discussion

16:59 Negotiation Begins

22:31 Client Retention Concerns

23:09 Earnout Structure and Final Offer

23:48 Negotiation Pause and Reflection

25:13 Resuming Negotiations

25:42 Unexpected Financial Hurdles

27:12 Deal Reconsideration

28:27 Key Takeaways and Q&A

32:02 Market Trends and Buyer Dynamics

38:59 Final Remarks and Audience Interaction

Connect with Daniel Welling on LinkedIn by clicking here –https://www.linkedin.com/in/daniel-welling-54659715/

Connect with Adam Morris on LinkedIn by clicking here – https://www.linkedin.com/in/adamcmorris/

Visit The MSP Finance Team website, simply click here –https://www.mspfinanceteam.com/

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We look forward to catching up with you on the next one. Stay tuned!