Representative Experience
Managed Service Providers (MSPs)
MSP and MSSP acquisitions, recurring-revenue contracts, and the security terms buyers scrutinize.
A dozen MSP and MSSP acquisitions across the buy and sell side, backed by ten years in the space.
Typical deal size: Typically $3 million to $30 million enterprise value (lower middle market)
The situation
For an MSP or MSSP, value sits in recurring revenue and the contracts behind it. Buyers discount hard for month-to-month agreements, missing signatures, customer concentration, and thin cybersecurity terms. Sellers often discover this after a letter of intent, when the leverage is gone.
What we handle
- Buy-side and sell-side MSP and MSSP acquisitions
- MSAs, SLAs, and statements of work built for recurring revenue
- Customer contract assignability and consent planning
- Cybersecurity and data-security terms for MSSPs and MSPs
- Vendor and distributor agreements across the technology stack
- Technician employment, contractor classification, and restrictive covenants
- Contract cleanup ahead of a sale or a rollup
- Ongoing fractional general counsel for MSP and MSSP operators
How these deals work
- 01 We start with the contract file: term length, auto-renewal, assignability, and whether the recurring revenue is actually under contract.
- 02 We diligence customer concentration, technician and contractor agreements, and the security and liability terms baked into customer contracts.
- 03 We negotiate the deal and map out consents in advance, so closing is not a last-minute scramble for signatures.
- 04 Where it protects value, we repaper or standardize key customer agreements before a process starts.
Who it's for
MSP and MSSP owners preparing for or running a sale, and platforms acquiring them.
Common questions
Managed Service Providers (MSPs), answered.
- What do buyers look at when acquiring an MSP?
- Contract quality above almost everything: term length, auto-renewal, assignability, and whether the recurring revenue is truly contracted. Customer concentration, technician agreements, and the security terms in customer contracts come next.
- Do our customer contracts transfer if we sell?
- It depends on the assignment language. Many MSP agreements are silent or require consent, which turns into a scramble at closing. Reviewing and, where useful, repapering key accounts before a process protects the price.
- How do buyers value an MSP?
- Usually a multiple of recurring revenue or adjusted EBITDA, then adjusted for contract quality, customer concentration, and churn. Clean, assignable, term contracts push the multiple up; month-to-month revenue pulls it down.
- Should MSP customer contracts be month-to-month or term?
- Term contracts with clear renewal and assignment language carry more value in a sale and give you more predictable revenue day to day. Month-to-month arrangements get discounted by buyers.
- How should an MSP prepare for a rollup or sale?
- Get the contract file clean: a signed agreement for every meaningful customer, consistent terms, clear assignment language, and defensible security commitments. That work is far cheaper before a buyer is at the table.
This page provides a general overview of managed service providers (msps) matters. Every situation is different. Contact Mond Law to discuss the specifics of your matter.