One-Person MSP Business Acqusition

October 18, 2024

by a searcher from University of North Carolina at Charlotte in Charlotte, NC, USA

I am looking at MSP space and want to hear your thoughts on a One-Person MSP. deals. The one I am looking at is a small Cloud solutions provider for Legal and Medical businesses to meet regulatory and compliance requirements. On one hand I understand the risks associated with it in terms of technical knowledge, customer relationship, growth potential, etc., on other hand I believe I can quickly get up to speed on technical skills and then hire/train a resource to handle the technical work so I can focus on marketing and acquiring more customers. Please share your thoughts/experience.

Reply by a searcher
in Vancouver, BC, Canada

If you're looking at a one-person MSP I'm presuming they're maybe like 100k SDE? You're not buying a business at that point. I'm not sure what you're buying, just a few contracts or software licenses?

If you're interested in the MSP space without technical knowledge, I'd either look for a larger deal (at least 500k EBITDA) or to back a technical account manager who wants to go start their own business and you handle the finance/ops side while they handle the technical side.

Reply by a searcher
from University of North Carolina at Charlotte in Charlotte, NC, USA

Thank you Brandon for the feedback. You are right on the SDE. Agree, I won't be buying a business and it will be a job. Going to pass on it.

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