By Mike Cullen, Vice President, Customer Retention & Business Strategy, SolarWinds MSP
The managed services market got its start as early as the 1990s as the recurring revenue business model sparked a new era of change in the technology industry. As managed service providers (MSPs) emerged, the market for their offerings grew, and it is expected to reach $193 billion by 2019, at a Compound Annual Growth Rate (CAGR) of 12.5%, according to Markets and Markets.
As the market has matured, we’ve seen mergers and acquisitions rise as growth-focused MSPs join forces to get bigger, better, and stronger. There are also many MSP owners who opened their businesses in the early days and are now ready to move on and retire.
Whether it’s to catapult growth, retire, or simply cash out, the reason for selling your MSP practice doesn’t necessarily matter, but the secret to selling it does. In working with our most sophisticated MSP partners through the years, here’s a few tips to a successful exit strategy...