Valuing An MSP: Preparing for M&A
All Things MSPApril 06, 2024
00:32:5375.28 MB

Valuing An MSP: Preparing for M&A

In this episode of the All Things MSP podcast, the hosts discuss mergers and acquisitions (M&A) in the MSP industry. They are joined by Adam Borst, VP of the Vista Business Group, who specializes in working with IT businesses. They discuss the valuation of MSPs, with a focus on EBITDA (earnings before interest, taxes, depreciation, and amortization) and the factors that drive the value of an MSP, such as recurring revenue and contract length. They also touch on the importance of a transition plan and the different financing options for M&A deals, including cash upfront, seller's notes, and earnouts. The hosts emphasize the need for professional assistance and guidance when considering M&A deals.

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mergers and acquisitions,MSP space,valuation,recurring revenue,contracts,