#41 – From the Trenches: Lawsuits, Lessons & a Copier-Dealer Exit (David Prince – Databranch)

In this episode of From the Trenches, MSP expert Josh Peterson interviews David Prince — longtime MSP owner, former CEO of Databranch, and one of the few MSP leaders to navigate both a major lawsuit and a highly successful copier-dealer MSP exit. David shares hard-earned lessons about MSP lawsuits, arbitration clauses, risk management, distressed-business acquisitions, and how he built Databranch into a profitable, acquisition-ready managed services provider.   David opens up about the moment he was unexpectedly served with a lawsuit after acquiring a struggling IT business, the financial and emotional shock that followed, and how the experience changed the way he approached contracts, partner vetting, and business protection. His insights into arbitration clauses, dispute resolution, client agreements, and legal safeguards are invaluable for any MSP owner.   The conversation then shifts to the decades-long evolution of Databranch — from early hardware-centric break/fix work to building a scalable recurring-revenue MSP model. David explains how he strengthened margins, improved service delivery, built internal leadership, optimized his chart of accounts, and developed the predictable systems necessary to prepare an MSP for sale.   He also breaks down why copier dealers have become one of the most underestimated but powerful competitors in the MSP space. With strong recurring-revenue DNA, experienced sales teams, and deep customer relationships, copier dealers are increasingly acquiring MSPs. David walks through what it was like to be acquired by a copier dealer, why they chose to keep the Databranch brand, and how he ended up staying far longer than the typical post-acquisition owner — ultimately finding fulfillment in mentoring, advising, and watching the company thrive under new leadership.   This episode is packed with actionable insights for MSP owners who want to avoid legal challenges, strengthen their business operations, prepare for acquisition, understand copier-dealer competition, or simply build an MSP that lasts.   👉 Learn more about the BMK Vision Operating System: https://beringmckinley.com/vision 🔗 Connect with Our Guest & Host   David Prince: https://www.linkedin.com/in/david-prince-043a55 Josh Peterson: https://www.linkedin.com/in/joshdpeterson 🔥 Topics We Cover How an unexpected lawsuit reshaped an MSP’s trajectory Arbitration clauses, dispute resolution & legal protection for MSPs Lessons from acquiring a distressed IT business Transitioning from hardware sales to recurring managed services Building systems, processes & service maturity inside an MSP Why copier dealers are rising competitors — and major MSP buyers How copier-dealer acquisitions actually work Preparing your MSP for market valuation & exit Strengthening leadership and creating a successor model Life after selling your MSP — advisory roles, legacy, and fulfillment 🎙️ Guest Bio — David Prince   David Prince is the former owner and CEO of Databranch, a respected MSP serving Western New York for decades. After navigating an unexpected lawsuit early in his career and adapting through multiple waves of industry change, David transformed Databranch into a profitable, highly stable managed services provider. In 2020, he sold the company to a copier dealer who retained the Databranch brand and team. David now serves as an advisor, supporting the organization he built and mentoring the next generation of MSP leaders. 🎤 Host Bio — Josh Peterson   Josh Peterson is CEO of Bering McKinley and host of the BMK Vision Podcast. With decades of experience guiding MSPs through operational maturity, financial structure, leadership development, and acquisition readiness, Josh helps owners grow their companies with clarity and confidence through the BMK Vision Operating System. 🌐 Learn more: https://beringmckinley.com/vision