9 articles
Growth & exit
What buyers look at, and how to have it ready before anyone calls.
Bank loans and covenants for MSPs
How lines of credit and term loans work for a managed services business, the financial covenants lenders commonly use, and the reporting you should be ready to deliver.
Buying a client book: what to check
A financial checklist for tuck-in acquisitions of a small MSP or client book, covering agreements, margins, transferability and receivables, plus common deal structures.
Getting ready for a QoE review
What a quality-of-earnings team will test, how to get accrual books, reconciliations, revenue support and add-back documentation ready, and what to fix first.
How earnouts work in an MSP sale
What an earnout is, how the choice of metric shapes the outcome, and the measurement and accounting control points a selling MSP owner should negotiate.
Measuring and reducing customer concentration
How to calculate your top-client and top-five revenue share, why lenders and buyers watch those numbers closely, and practical ways to bring them down over time.
Normalizing EBITDA without overreaching
Add-backs can show a buyer what your MSP really earns, but weak adjustments get stripped out in a quality-of-earnings review and cost the seller credibility.
Not all recurring revenue is equal
Buyers look past the monthly recurring total to the contracts, customers and margins behind it. Those details decide how much that revenue is really worth.
Packaging services into profitable tiers
How to decide what belongs in each managed services tier, test each tier against its cost to serve, and set up reporting that shows how tiers perform.
What diligence asks for first
Before a buyer's team looks at your stack or your people, they ask for the same core financial records. Have them organized before the first call.