Webinar: How to Calculate Adjusted EBITDA for MSPs

Here’s our detailed webinar on how to calculate Adjusted EBITDA for Managed Service Providers (MSPs), hosted by Devin Rose from The Host Broker. In this session, we dive deep into why Adjusted EBITDA is a crucial metric for MSP valuations, and how to accurately calculate it.

Key Topics Covered:

  • The significance of Adjusted EBITDA in MSP valuations.
  • Common adjustments to consider, including non-operating income, personal expenses, and owner salaries.
  • A step-by-step example using a fictional MSP’s profit and loss statement.
  • How Adjusted EBITDA impacts the valuation of your MSP.
  • Important considerations to ensure your adjustments are reasonable and credible to potential buyers.

Resources:

Webinar: SBA Loans for MSPs

Are you an MSP owner looking to expand your business, invest in new technology, or acquire another company? Navigating the financing landscape can be challenging, but SBA loans offer a powerful solution for Managed Service Providers (MSPs) looking to scale their operations.

The Host Broker Webinar Series presents: SBA Loans for MSPs

In this webinar, we are joined by Nick Padlo from Live Oak Bank to dive deep into the world of SBA loans, discussing how they can be leveraged to fuel growth for your MSP business. Whether you’re a seasoned entrepreneur or just starting, this webinar is packed with valuable insights to help you understand:

  • What are SBA loans: Learn the fundamentals of SBA loans, including the different types available and how they can benefit your MSP.
  • Eligibility Criteria: Discover the specific requirements to qualify for an SBA loan, and how to prepare your business for the application process.
  • Application Process: Step-by-step guidance on how to navigate the SBA loan application, including tips for maximizing your chances of approval.

Watch the recorded webinar today and start planning your next big move.

ExitCon 2024 4th Session – Post Close Success

The 4th session of ExitCon 2024 hosted by Devin Rose, with Guest Speakers:

ExitCon is an online event designed to provide MSP Owners with the knowledge and tools they need to plan a successful exit strategy. This conference features industry experts who will share their insights and experiences on navigating the complexities of selling an MSP.

The session focuses on strategies for achieving post-close success in MSP acquisitions, emphasizing employee retention, cultural integration, and maintaining customer relationships. Key points include the importance of clear communication, addressing employee concerns proactively, and aligning technology stacks to support long-term growth and integration.

Got more questions? Contact us now!

ExitCon 2024 3rd Session – Valuations

The 3rd session of ExitCon 2024 hosted by Hartland Ross, with Guest Speakers:

ExitCon is an online event designed to provide MSP Owners with the knowledge and tools they need to plan a successful exit strategy. This conference features industry experts who will share their insights and experiences on navigating the complexities of selling an MSP.

The discussion revolves around the valuation and market dynamics of MSP businesses, highlighting factors such as market consolidation, valuation metrics beyond EBITDA, and the importance of clear financial transparency and standardized accounting practices to attract potential buyers and optimize business operations. Key insights include the impact of acquisition trends and the necessity of preparing comprehensive financial documentation for effective decision-making and successful transactions.

Got more questions? Contact us now!

ExitCon 2024 2nd Session – Preparing an MSP for Sale

The 2nd session of ExitCon 2024 hosted by Hartland Ross, with Guest Speakers:

ExitCon is an online event designed to provide MSP Owners with the knowledge and tools they need to plan a successful exit strategy. This conference features industry experts who will share their insights and experiences on navigating the complexities of selling an MSP.

The discussion focuses on preparing an MSP for sale, emphasizing the importance of having long-term, stable client contracts and implementing best practices to maximize the business’s value. Key reasons for selling include focusing on another business, retirement, and burnout, while challenges such as ensuring cultural fit and maintaining transparent financials are highlighted. Proper due diligence and understanding the buyer’s strategy are crucial for a successful sale.

Got more questions? Contact us now!

ExitCon 2024 1st Session – Deal Process

The 1st session of ExitCon 2024, hosted by Hartland Ross.

ExitCon is an online event designed to provide MSP Owners with the knowledge and tools they need to plan a successful exit strategy. This conference features industry experts who will share their insights and experiences on navigating the complexities of selling an MSP.

The session discusses key considerations for MSP owners contemplating a sale, including reasons for selling, such as retirement and burnout, as well as the impact of COVID-19. It highlights the importance of setting expectations, understanding valuation, managing customer concentration, and documenting revenue trends. Additionally, the role of intermediaries in facilitating better buyer-seller matches and smoother transitions is emphasized.

Got more questions? Contact us now!

Podcast: What You Need To Know Before Acquiring Your Next Business

Our Team’s Hartland Ross recently joined Tim Fitzpatrick on the Realto Marketing podcast. In this engaging episode, Hartland delves into the complexities of M&A, offering invaluable insights for anyone considering buying or selling a business. Whether you’re a novice or an experienced professional, this podcast is a must-listen.

Key Takeaways from the Podcast:

1. Building Trust from the Start:

Establishing trust early in the negotiation process is crucial. Hartland emphasizes the importance of rapport-building from the first interaction, whether through Zoom calls or in-person meetings. This trust lays the foundation for a smooth transaction.

2. Effective Due Diligence:

The diligence process is where the buyer evaluates the opportunity. Hartland highlights that the speed and accuracy of information exchange can significantly impact the buyer’s confidence and the overall success of the deal.

3. Qualifying Opportunities:

Hartland advises buyers to focus on deal-killer issues that can make or break a transaction. Identifying these early can save time and resources for both parties.

4. Valuation Alignment:

One of the most common deal-breakers is a mismatch in valuation expectations. Hartland explains the importance of realistic valuations based on market standards and not personal financial needs or aspirations.

5. The Role of Professional Advisors:

Having the right legal and financial advisors familiar with M&A processes is essential. Hartland shares examples where incorrect advice from inexperienced advisors led to complications, stressing the need for specialized expertise.

6. Time and Deal Fatigue:

Prolonged negotiations can lead to deal fatigue, where parties lose motivation to close the deal. Hartland stresses the importance of sticking to agreed timelines and maintaining momentum to avoid this pitfall.

Hartland Ross’s insights are not only profound but also practical, providing a roadmap for navigating the often-turbulent waters of M&A. Don’t miss out on this opportunity to learn from one of the best in the industry.

Tune in to the full podcast episode here and elevate your understanding of mergers and acquisitions today!

Podcast: MSP Finance Team EP059 – M&A Strategies With Hartland Ross From The Host Broker

Hartland Ross joined Adam Morris and Daniel Welling in the latest episode of “It’s a Numbers Game,” chatting about marketing as well as mergers and acquisitions for MSPs.

Discover effective marketing techniques for organic growth, learn the ins and outs of M&A in the MSP space and get tips on preparing your MSP for a successful sale.

Tune in here.

Webinar: How data drives valuations higher – with special guest Larry Cobrin

Unlock the secrets to driving valuations higher through the power of data in our recorded webinar, “How Data Drives Valuations Higher,” featuring the expertise of special guest Larry Cobrin from MSPCFO.

In this insightful session, Larry Cobrin, a seasoned industry expert, delves deep into the crucial role data plays in enhancing business valuations. Whether you’re a business owner, investor, or data enthusiast, this recording offers a wealth of knowledge to help you harness the full potential of data for elevating valuations. Watch it here.

If you enjoy this video, you might also want to check our previous interview with Dave Sobel where we discussed trends in managed services. Watch it here!

The Host Broker offers a free evaluation for owners of IT services businesses considering exiting. Learn about the acquisition process and find out what your company may be worth on the market.

If you have any questions, please don’t hesitate to contact us.

How to Avoid Selling Your MSP for Only $14,000

In this podcast episode, Joe, Jeff, and Hartland Ross discuss the importance of having an exit strategy and processes in place for MSPs to avoid burnout and increase the value of their business. He also highlights the benefits of acquiring and growing a book of business and advises sellers to understand the limitations of their business and what it is worth. The conversation also touches on the emotional process of selling a business, and how one may want to consider what they plan to do once the business is sold.