Evolved Radio

Selling your MSP - ERP136


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Preparing to Sell Your MSP: Emotions, Valuation, Deal Structure, and Exit Planning with Amy Babinchak Today on the Evolved Radio podcast, I welcome Amy Babinchak, a 22-time Microsoft MVP and author of "20 Questions Every Owner Asks Before Selling Their MSP," about planning an MSP sale years in advance. Babinchak describes the emotional impact of selling—often resembling grief—and stresses having a purpose and plan for life after the exit. They discuss avoiding pressure to "time the market," noting there is always demand for a well-run profitable business, and the need to prepare both operations and personal finances with a CPA, tax lawyer, financial planner, and business lawyer. The conversation covers deal structure tradeoffs (cash, time commitments, and total value), common earn-out/retention periods owners find miserable, valuation drivers like profitability, standardization, and running without the owner, typical multiples for small and mid-sized MSPs, and options for smaller firms such as selling a book of business or rare seller-financed sales to employees. 

This episode is brought to you by Opsleader Pro. A place for MSP owners and managers to get the systems and tools they need to build a stable and growing MSP. Part group coaching, part peer group, everything you need to run a successful MSP.

  • (00:00) - Meet Amy Babinchak
  • (01:12) - Why Plan Ahead
  • (02:21) - Emotional Aftermath
  • (04:15) - Life After Exit
  • (06:44) - No Need To Rush
  • (08:55) - Prep Business And Personal
  • (10:16) - Build Your Sale Team
  • (12:19) - Deal Structure Tradeoffs
  • (16:45) - Know Your MSP Value
  • (17:59) - How Buyers Value You
  • (20:05) - What Buyers Value
  • (20:48) - Opsleader Pro Break
  • (21:24) - Realistic MSP Multiples
  • (23:11) - Selling Small MSPs
  • (25:15) - Books of Business Wins
  • (27:03) - Buyer Options Overview
  • (27:28) - Seller Financing to Team
  • (31:00) - PE Size Thresholds
  • (32:13) - Rollups and Stability
  • (33:22) - Vetting PE Partners
  • (37:33) - Legacy Over Price
  • (39:15) - Book Wrap Up
  • (40:55) - Final Takeaways
  • ...more
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    Evolved RadioBy Todd Kane

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