By: Wesley Legg “I should have sold when I had the chance,” is a phrase our advisors hear much more often than “I sold too early.”Timing a transaction is tricky, because it’s influenced by a variety of internal and external factors, such as:– Government policy– Capital markets– Macro-economic forces– Industry life-cycles– The company’s life-cycle– Personal…
Founders Managed IT Services Valuation Scorecard Founders’ MSP Valuation Scorecard isolates the most critical quantitative and qualitative factors during valuation multiples Revenue Stream Impact on Valuation For Managed IT Services Revenue composition remains a critical driver of valuation for managed IT service providers; below displays how the investor community views varying streams of revenue in…
By: Brad Johnson “How large is your market, and what is your share of it?” If you haven’t been asked this question yet, you can certainly expect it if you ever consider any sort of transaction. This is one of the most common questions from both strategic and financial buyers, yet we typically find that…
By: Chris Weingartner One of the most frequent questions we are asked by founders and entrepreneurs is whether their focus should be on growing revenues or achieving profitability, especially when it comes to the impact on Enterprise Value. It is a complicated question that presents meaningful tradeoffs unique to each company and one that companies…
Current Trends in Managed IT Services Talent Scarcity – The biggest growth challenge cited by MSP operators is the scarcity of good IT Engineers and supporting talent. Because of this, employee retention is quickly becoming as important as customer retention in driving valuation Cybersecurity Tailwinds – Customers who previously hesitated to invest in security are…
By: Wesley Legg Many business owners would consider a company with a revenue growth rate of 40% exceptionally attractive. “Surely this is a well-founded business primed for a promising future. With a growth rate of 40%, this company will soon be a dominate player in their market.” But they’ve forgotten a key part of that…