5 M&A Myths That Cost IT Services Founders the Most | Shoot the Moon

Your friend sold for a great multiple. PE pays more than strategics. Earnouts are a trap. Wait for the right market. You’re too small to sell. Here’s what’s actually true. Mike Harvath, Ryan Barnett, and Matt Lockhart break down the five M&A myths they encounter most often with IT services founders, and what believing them actually costs. From misreading a peer’s deal as your benchmark, to misjudging how earnouts work, to holding off on a sale waiting for perfect market conditions, these are the misconceptions that consistently lead founders to make worse decisions at the worst possible time. ━━━━━━━━━━━━━━━━━━━━━━━━ TIMESTAMPS 00:00 Intro 00:20 Welcome and Episode Setup 02:00 Myth 1: “My Friend Sold for X EBITDA, That’s My Benchmark” 07:30 Myth 2: “PE Always Pays More” (Or “Strategics Always Win on Price”) 13:00 Myth 3: “Earnouts Are a Trap” 18:30 Myth 4: “I Need to Wait for the Right Market Conditions” 24:00 Myth 5: “I’m Too Small to Sell” 28:30 The Common Thread and What to Do Instead ━━━━━━━━━━━━━━━━━━━━━━━━ LISTEN AND SUBSCRIBE Podcast: https://www.revenuerocket.com/series/shoot-the-moon/ Website: https://www.revenuerocket.com Talk to us: https://www.revenuerocket.com/contact-us/ LinkedIn: https://www.linkedin.com/company/revenue-rocket-consulting-group ━━━━━━━━━━━━━━━━━━━━━━━━ Revenue Rocket is the premier M&A advisor to IT services companies, helping owners in the lower middle market navigate sell-side and buy-side transactions with specialized expertise and hands-on deal management. Shoot the Moon is their weekly podcast covering M&A strategy, valuation, and growth for IT services leaders including MSPs, cybersecurity firms, cloud providers, VARs, and digital transformation companies.