20 Questions For Selling An MSP (EP997)
Most MSP owners wait too long to get serious about an exit, then wonder why their “baby” doesn’t get the valuation they expected. In this conversation with Amy Babinchak, we dig into her book “20 Questions Every Owner Asked Before Selling Their MSP” and break down what really drives value, what kills deals, and how to treat your MSP like the nest egg it actually is.
Too many of us spend decades building our MSP, missing vacations and pulling all-nighters, only to “decide” to sell when a random LOI hits the inbox. Amy Babinchak has spent years helping owners sell their MSPs through Sell My MSP, and she joins me to walk through the real-world questions, red flags, and blind spots that determine whether you shut it down or cash it out. We talk about planning three to five years ahead, getting your financials and contracts clean, modernizing your stack, and why recurring revenue and profit percentage matter more than that one big whale client you’re so proud of.
We also get into the emotional side nobody warns you about: what it feels like to hand over the business you built for 20-plus years, how to think about life after the sale, and why treating your MSP like a resume can change the way buyers see your value. Amy shares how private equity looks at EBITDA and tools, why most deals are still MSP-to-MSP, and how to turn your company into the best-run, least-scary option on a buyer’s list.
Chapters
- 00:29 Introduction to MSP Selling
- 04:14 Understanding the MSP Market
- 05:56 The Value of Consulting
- 07:09 The Role of Private Equity
- 09:17 MSP-to-MSP Transactions
- 13:08 Buyer Considerations
- 15:02 The Importance of Planning
- 17:55 Key Factors in Business Valuation
- 19:54 Understanding EBITDA
- 23:29 Importance of Documentation
- 24:06 Preparing for Sale
- 26:12 Identifying Red Flags
- 29:07 Client Concentration Risks
- 34:38 Personal Guarantees and Liabilities
- 39:39 Emotional Aspects of Selling
- 40:55 Closing Thoughts on MSP Value
Guest: Amy Babinchak, Sell My MSP / Third Tier:
- Website: https://www.thirdtier.net/
- LinkedIn: https://www.linkedin.com/in/amybabinchak/
Book: 20 Questions Every Owner Asks Before Selling Their MSP
- Purchase from Amazon: https://amzn.to/3QTqOVD
- Purchase direct from publisher. https://linkly.link/2hhTQ
Shout-outs
- Rayanne Bucchianico: https://www.linkedin.com/in/rayanneabcsolutionsfl/
Companies / Vendors / Products Mentioned
- Tech Data: https://www.techdata.com
- Pax8: https://www.pax8.com
- Kaseya: https://www.kaseya.com
- ConnectWise: https://www.connectwise.com
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Owner Third Tier | Microsoft MVP | President NSiTSP
am a recognized leader and influencer in the IT community, with multiple honors and awards, such as the 18-time Microsoft MVP, the MSP 501 recipient, and the SMB 150 awardee. I am passionate about sharing my knowledge and experience with other IT professionals, as the president and founding board member of the National Society of IT Service Providers, the owner of Third Tier, and the author of several books and publications. I strive to promote education, professionalism, and collaboration in the IT industry.
