What Every MSP Should Know About Financial Due Diligence Before Going to Market

[email protected] | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedInI sit down with Dan Brumwell Partner in Weaver’s Transaction Advisory Group to discuss Financial Due Diligence, a key component of the due diligence process. Below are the questions discussed, along with a high level summary of the answer. Enjoy! 1. Weaver Background2. Quality of Earnings (QoE): The BasicsQ: What is a QoE and why is it important?Q: What are core components of a QoE?Q: How is revenue broken down (monthly vs. annual)?Q: What if data isn’t easily available?Q: Can QoE show profitability per customer? 3. Audited Financials vs. QoEQ: How is a QoE different from audited financials?4. Common Adjustments in MSP QoEsQ: What adjustments do you typically make?5. Key Metrics and Red FlagsQ: What financial red flags do you often find? Q: How do you handle churn metrics?6. Net Working Capital (NWC) EssentialsQ: What is NWC and why is it important? Q: How is NWC calculated? Q: Common seller misunderstandings?7. Process & Client CommunicationQ: What does a typical engagement look like? Q: Who participates in diligence calls? Q: What if info is hard to get? Q: How do you handle tight deadlines?8. Seller-Side QoE: Why It MattersQ: Why should a seller do a QoE report? Q: When should MSPs do this?9. Market Trends & Future of DiligenceQ: What trends are you seeing? Q: Will QoE become fully automated?10. Final TipsQ: What’s your advice for MSPs thinking of selling?🎧 Tune in now to learn how to own your financial due diligence process.Madhur Duggar is a Senior M&A Advisor at Excendio Advisors and focuses on IT ServicesReach out to Madhur at [email protected] or 212.731.4230  Book an Appointment with him on his LinkedIn at (34) Madhur Duggar | LinkedInCheck out Excendio Advisors and our amazing content at www.excendio.comReach out to Dan Brumwell on his LinkedIn at (30) Dan Brumwell, CPA | LinkedIn  www.linkedin.com/in/madhur-duggar