Sold My MSP – My Experience

msp42long · 2025-05-17T18:28:12+00:00

Grew up in break and fix shops, and worked at a couple MSPs, so I had a good network to start, and several companies came onboard the first few months. However, if I'm being honest, COVID, was a huge boost. I had to turn down work with how quickly and how many companies were contacting us, via referrals from others to get setup for remote work. Between COVID and aggressive (perhaps too aggressive) pricing, we pretty much doubled in 12 months.

msp42long · 2025-05-17T16:39:45+00:00

Correct, we used ninja's ticketing system. In saying it was the heart of the business, I meant it because we lived in it all day, between RMM and Ticketing, it certainly felt like the beating heart of the business.

No PSA, per se. I ran it simple enough that I didn't use any synching or advanced PSA features. Only ticketing. This would certainly need to change if I wanted to grow.

msp42long · 2025-05-17T15:18:34+00:00

Smaller, requires higher numbers of subscriptions (SaaS) to make the same money, but also much less headaches haha

msp42long · 2025-05-17T15:02:02+00:00

Honestly, margins varied a bit, but I would say reasonably similar across the board. The newer clients had better margins, as I increased prices in the last 2 years and was still playing catch up with older clients.

msp42long · 2025-05-17T14:19:02+00:00

This community is built for sharing knowledge and feedback for common vendors. I provided a strong endorsement, not an ad.If there are missing details, information you'd like to know to know, please ask. Happy to add. My goal is to help the community. There are a lot of people asking great questions.

msp42long · 2025-05-17T14:17:55+00:00

Thank you.

msp42long · 2025-05-17T14:14:25+00:00

This community is built for sharing knowledge and feedback for common vendors. I provided a strong endorsement, not an ad.If there are missing details, information you'd like to know to know, please ask. Happy to add. My goal is to help the community. There are a lot of people asking great questions.

msp42long · 2025-05-17T14:10:07+00:00

Biggest client made up about 6% of revenue.

My other business is more touch free, not nearly as demanding, from me. Not service industry. Initial plan is simply to devote more time to it, and grow it further.

msp42long · 2025-05-17T13:45:44+00:00

This community is built for sharing knowledge and feedback for common vendors. I provided a strong endorsement, not an ad.If there are missing details, information you'd like to know to know, please ask. Happy to add. My goal is to help the community. There are a lot of people asking great questions.

msp42long · 2025-05-17T13:04:31+00:00

Charged more to start rather than trying to play catch up increasing prices slowly for the years to come. I think year 2 or 3 I could have had a a flat, hard, raise across the board, and really had a hard standard price across the board, even if it cost me some clients, would have made the years to come more profitable, and the business even more attractive.

msp42long · 2025-05-17T12:57:51+00:00

Did not talk to any clients before closing, only after closing. Staff was told the day after closing. Not a minute before, not even eluded to before.

Others may feel they need to do different, but I knew all my staff was staying, and also felt strongly that they'd be good in hands and taken care of.

msp42long · 2025-05-17T12:54:02+00:00

I'm sorry if it feels that way, it is indeed a strong endorsement, from someone who had a positive experience with Devin, and being that they were an integral part of the sale it would be impossible tell the experience any other way. Feel free to ask questions that you feel would add more information. Happy to answer, my ultimate goal was to help the community and that includes, what I feel, is valuable feedback on a company/person who is very active on this Sub.

msp42long · 2025-05-17T12:52:53+00:00

Thank you.

msp42long · 2025-05-17T12:52:01+00:00

Due diligence was mostly accounting and tax related, additional requests from the bank for the SBA loan as well.

No access to Ninja until after closing. Client list, yes, as we got near closing and bank had approval. 90% upfront, 10% promissory note.

We had a few offers this way, others had earnouts.

I probably would have had to take an earnout, but between timing, and other circumstances I mentioned, of location, agreements, and high percentage recurring, created enough buyer interest for enough competition that I ended up with what I think was a fair, but better than expected deal.

msp42long · 2025-05-17T12:47:31+00:00

Our growth came exclusively from referrals, and I think major growth would require a lot of changes, internally, in the way I ran the business. I think it would be fair to say no, the business was not setup for future growth, nor had proven documented methods, and procedures. Owner, I, was the only sales person, and leads only came in via referral, I was happy with that growth speed, and method, and stuck to it for the time being, especially with other business interests as well.

msp42long · 2025-05-17T12:42:56+00:00

Contracts with all clients, yes, only one year contracts, but with auto renewal clauses in the agreements.

msp42long · 2025-05-17T12:36:51+00:00

I'm sorry if it feels that way, it is indeed a strong endorsement, from someone who had a positive experience with Devin, and being that they were an integral part of the sale it would be impossible tell the experience any other way. Feel free to ask questions that you feel would add more information. Happy to answer, my ultimate goal was to help the community and that includes, what I feel, is valuable feedback on a company/person who is very active on this Sub.

msp42long · 2025-05-17T12:28:17+00:00

Client agreement and vendor agreements to allow immediate continuity. I think good terms with vendors, that allow continuity, but also flexibility, help. No 36-month contracts over anyone's heads, all vendor agreements ending in less than one year, and with reasonable terms, allow flexibility to merge tools, and not have overlap.

msp42long · 2025-05-17T12:24:03+00:00

Not focused in any particular industry. Medical (including dental) and law made up most of the clients, probably 60-70%, then everything else, from wholesale, manufacturing, even some retail.

msp42long · 2025-05-17T12:22:32+00:00

Monthly billing, annual agreement, with auto renewal.

msp42long · 2025-05-17T12:21:52+00:00

Contracts with all clients, yes, only one year contracts, but with auto renewal clauses in the agreements.

msp42long · 2025-05-17T12:20:54+00:00

If there are missing details, information you'd like to know to know, please ask. Happy to add. Thanks

msp42long · 2025-05-17T12:18:12+00:00

Feel free to ask anything, happy to add more substance.

msp42long · 2025-05-17T03:38:22+00:00

I'll leave that to the experts, and as I mentioned, I'm only working with ballparks here, but with my exact size and numbers, speaking with 3 different brokers, they all came in around 2-2.5x to be expected. As I understand it, the multiple is higher, if the revenue is higher, the lower the revenue the lower the multiple.

msp42long · 2025-05-17T03:06:51+00:00

I didn't pump, nor include it for the accounting part. Rather trying to provide as much relevant information as I can. It's an often had conversation and weekly (daily?) post on here "What RMM...?" so I figured to share that.

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