Sell My MSSP Company

Ready to retire and sell your MSSP business? Here are 5 steps to help you get it ready before putting it for sale.

You have finally made the decision that you are ready to retire. You have built your managed security service provider (MSSP) company for many years and poured your heart and soul into becoming your area's best-managed security service provider. What comes next?

The thought of retiring is complex for many. “How do I sell my business, which has been a massive part of my life for so long?” Wrestling with these thoughts can be stressful. We will offer advice to make selling your MSP business to qualified buyers easier.

1. Get Your Business Ready

As the saying goes, you must get your ducks in a row. You need to ensure that your MSSP company is running smoothly and that there are no problems that would deter a buyer.

Your finances must be in order, and accounting must be organized and up to date. You will need to show potential buyers yearly financial statements for a minimum of three years, and they will want to examine the reports to determine the company's profits.

You will also have to show qualified buyers your MSSP company's tax returns. Your accounting and financial statements must comply with all tax laws. A good plan is to get a review from a certified accountant to ensure that everything is in order. If the study finds your records incomplete, you must take time to get your accounts in order.

You can consult a sell-side advisor who will let you know things you can do to increase your MSSP company's value and make it more appealing to potential buyers. The profitability of an IT services business is directly related to the marketing strategy used by the company. When you are ready to sell, you may want to tweak your plan, so you are reaching more people.

Managed service providers (MSP) are IT services with specific technological expertise. Does your MSSP company have loyal employees? Will they be willing to stay if you sell the company? It would help if you had an employee retention plan in place. Potential buyers want a managed security service provider with employees who will continue to do their jobs.

You may consider promoting employees from within and teaching them what they need to know so the company will continue to operate smoothly even in your absence. An organized MSSP company will work efficiently when employees are well trained and confident.

If you don't have a procedure manual, you might consider creating one before putting your company up for sale. The manual should detail how you do what you do in your IT services business and describe precisely how things are done and by whom. The manual makes it more appealing to buyers because they will then have a guide to running the business.

See This Easy to Read Cheat Sheet: Click to Download This ExitPrep Checklist

2. Set a Price

It can be challenging setting a price on a company that has become so important to you. Unfortunately, feelings cannot play a part in your business's price tag. Your best bet is to consult a lower middle market business broker. These brokers typically deal with the sales of companies with more than two million dollars in revenue.

A broker will help you recognize the value of your business. Determining a fair price will require some research. Try to find out what similar businesses are selling for in your area. You will have to compete with the sale of other companies, so you want to ensure your price is reasonable.

See a Business Valuation Sample. Click to Easy Download File

3. Market Your Business

You should use your marketing skills to market your MSSP company to potential buyers. Spread your company's success to investors in the same field. Word of mouth is sometimes the most effective marketing tool, but there are others you should consider, especially when selling a company as specialized as a managed security service provider

Create a website that focuses on the features of your company. Don't be afraid to boast about your success. You can include customer testimonials that show your company in a positive light. It would help if you shifted your focus from selling your services to selling your MSSP company.

Here is How Rogerson Business Services Market and Attract Qualified Buyers to Your MSSP Business Listed For Sale in California.

4. Negotiate with Buyers

If you have decided to negotiate the sale of your MSSP company yourself, you need to stay firm. Once you have determined a fair price for your business, you should remain strong and be ready to walk away if your price is not met. A well-run IT services business is not an easy thing for buyers to find, so don’t settle for a low-ball offer; you are worth more than that. 

It would be best if you were wary of negotiations asking for your continued help after the sale. You must ask yourself if you are willing to help out with problems the new owner may be experiencing. If you are eager to help, it might be wise to include a consulting fee for your input, so you are not working for free.

On the other hand, you may not want to be bothered during your retirement, and you will have to make this clear during negotiations.

The profit from selling your business will likely be a significant financial consideration for your retirement. Hence, you want to get what you deserve from a company you have built for many years. Looking up “how to sell my business” is not an easy step to take, and you want to ensure you will be receiving what it is worth. 

If you are not excited about the hassle that comes with the sale of a business, you can hire a sell-side advisor, middle-market business broker, or IT business broker to handle the sale.

5. Close the Sale

Once the negotiations have been finalized and all parties are satisfied, you must complete the final paperwork. Both buyer and seller must sign a purchase agreement, and there will need to be an official transfer of ownership of the company to the buyer.

You must have a lawyer read through all documents to ensure everything is in order. Once the paperwork is complete, it will be official; you are now a retired business owner.

Final Thoughts: Sell My Managed Security Service Provider Company

Retirement is a part of life that everyone should look forward to and enjoy. Once you decide to retire, the process becomes much more manageable. You must adjust to handing your business over to someone else. 

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You can enjoy your work-free days indulging in the hobbies you didn't have time for when you were at the helm of your MSSP company. Or perhaps you'll want to take the opportunity to travel. However you choose to spend your retirement, you will enjoy peace of mind knowing that your business is in good hands.

Conclusion

Selling your IT managed service provider (MSP) business in the lower middle market in California is a life changing event that requires forethought and careful planning. Before selling your business, know its worth in both tangible and intangible assets. Find a reliable professional representative like a certified business intermediary specialized in M&A deals to manage the process while you continue to maintain your business. The IT broker will do the heavy lifting by marketing to and negotiate with vetted buyers and close for a reasonable price. 

See how Rogerson Business Services sold businesses in California by Visiting These Case Studies.

If you have decided to value and then sell your IT services business now or within the next six months, click here to get started with this quick and simple form, so we can understand your pain points better and prioritize your inquiry with RBS Advisors.

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