Go for a Dream Exit
How do you realize a Dream Exit for your MSP company? Good news is… Your company is in a growth market.
Still, you have to be careful. Large software companies are often not interested in small ones reseller. In the increasingly complex technology landscape, there is a need for large MSPs or resellers who excel in both sales and implementation and support afterwards.
Are you good at that? Then a Dream Exit is close by!
This is how you value a managed services provider (MSP)
1. Volume
Larger MSPs usually settle for lower margins. This means that smaller players can sometimes be pushed out of the market.
2. Specialization
Ensuring volumes grow quickly is one way to remain successful in times of declining margins. A second way is to specialize in a niche and develop your own intellectual property (IP). Having your own product and dominance in a certain market help your company to maintain higher margins.
- The war for talent is a major challenge for MSPs. MSP services are almost always labor intensive and for talented employees, switching from one MSP to another is a breeze.
- The processes of software and other implementations often take longer and are therefore more expensive than first thought. MSPs that do have control over these processes are loved by customers.
- This is related to: what is the level of your service? what are your branding and identity? The answer to those questions determines to a large extent what your sales market is (and therefore also how large it is).
- MSPs often have to deal with declining margins (see above).
- Does the company know intellectual property (IP) to monetize? Specific knowledge, provided it helps customers, acts as a protective barrier for healthy margins.
- Choosing a clear focus and market dominance also help your company to protect margins.
Do you really want to prepare your company for a Dream Exit? Make an appointment with No Monkey Business director Martijn van der Hoeden.
Successful exit Herke ICT Group
Herke ICT Group has completed the entire 4-Step Exit Program. After a short but intense period of reflection and the implementation of a number of improvements, we entered the market.
Read more about this case here
Are you ready for it? Do the Quick Scan!
The NMB Quickscan is a handy tool that gives you quick insight into the current state of your company. In 25 questions we let you think about your organization. Do the NMB Quickscan for free and without obligation.
Now that you know what potential buyers are looking at, our question to you is: are you ready to sell your business? What else is needed? Are you overlooking anything else? For an answer to these and other questions, make an appointment with us. Together we really prepare your company for a Dream Exit.
You know the why.
We know the how.
Contact us so we can see together
how we can help you with your Dream Exit.