Who Tends to Buy
- Larger managed service providerAdds your client contracts and technicians to its own operation.
- Regional roll upBuys several providers and runs them on one set of tools.
- Technology minded investorWants steady monthly revenue with a manager in place.
Monthly contracts carry the value
Buyers pay most for monthly service agreements that renew. Project work and one time hardware sales are worth less, since they must be won again each time.
Show a clear split between recurring revenue and everything else, and how long your typical client stays.
Churn and contract terms
Track clients lost each year and why. A low churn rate tells a buyer the service sticks. Check that contracts can be assigned to a new owner without a client's consent, or plan how to get it.
Technicians and the help desk
If you personally answer the hard calls, the business depends on you. A buyer will want a team that can run without you, with documented procedures and clear roles.
Technician pay and tenure matter. Losing two senior people after closing can break the service level you promised.
Tools, security and the stack
Buyers look at the monitoring, security and backup tools you use and who owns the licenses. They also check that your own house is in order, including how you protect client data.
What to gather before you list
Prepare a client list with monthly fees, start dates and contract end dates, plus churn by year. Add a list of the tools and licenses you use, your security practices and an org chart.
Buyers also check how documented your procedures are. A runbook for common problems shows that the service does not depend on one person.
Office space and equipment leases may need landlord consent, covered in lease assignment in a sale.
What helps the price
- Most revenue under monthly agreements
- Low client churn for several years
- A second in command who runs daily service
- Clean books, with owner pay properly adjusted
Owners often ask how earnings are adjusted. Our note on add backs a buyer accepts and rejects explains it. To see a range, request a private price range.