20 Questions For Selling An MSP (EP997)

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 === SPONSORS:  Livestream Partner, ThreatLocker: https://www.itbusinesspodcast.com/threatlocker Technology Partner, NetAlly: https://www.itbusinesspodcast.com/netally/ Technology Partner: Bvoip: https://www.itbusinesspodcast.com/bvoip Travel Partner: TruGrid: https://www.itbusinesspodcast.com/trugrid Digital Partner, Designer Ready: http://itbusinesspodcast.com/designerready === SHOW MUSIC:  Item Title: Upbeat & Fun Sports Rock Logo  Item URL: https://elements.envato.com/upbeat-fun-sports-rock-logo-CSR3UET Author Username: AlexanderRufire  Item License Code: 7X9F52DNML === Connect with Uncle Marv🌐 Website: https://www.itbusinesspodcast.com/🎙 Host: Marvin Bee🛒 Uncle Marv’s Amazon Store (gear & tools I recommend): https://amzn.to/3EiyKoZ☕ Support the show: https://ko-fi.com/itbusinesspodcastIf you found value in this episode, share it with another MSP, IT provider, or tech entrepreneur. Your support helps keep practical, no-nonsense IT business conversations coming every week.