I had the pleasure this week of interviewing Randy Katz, co-founder at Synesis Advisors, a boutique consulting firm that helps small business owners sell their business. Today we specifically focused the conversation on MSP’s (Managed Service Providers) and how they can best prepare to sell if that is something in their future. MSP’s are also known as outsourced IT services firms and they typically help their clients manage workstations, applications, security and other infrastructure. MSP’s is a big market (estimated at over 40,000 according to ConnectWise), that is highly fragmented, which creates a great opportunity for companies to be buyers or sellers. Here are my six key takeaways from Randy, but listen to the podcast to learn more:
Why This Matters to MSP Owners
Selling your MSP is more than a financial move—it’s the culmination of your hard work and dreams. Whether you’re planning an exit next year or several years down the road, the way you prepare can dramatically impact the equity you ultimately realize. Drawing from our podcast with Randy Katz, this guide illuminates the path from mindset to execution.
Adding Strategic Depth: Preparation Win-Win
Start With Clear Objectives
Before engaging buyers, ask yourself:
- What’s my minimum price or valuation target?
- How involved do I want to remain post-sale—as advisor, part owner, or hands-off?
- What personal, financial, or lifestyle goals must the deal support?
This clarity ensures negotiations align with your real needs—not just cashing out at any cost.
—Industry experts recommend preparing 2–3 years ahead to enhance EBITDA and clean up operations. Even modest improvements can boost deal value by 10-30%.
Strengthen Your Business Fundamentals
Buyers value operational maturity. Consider taking action now to:
- Increase recurring revenue and reduce one-off or project income
- Build a leadership team so that the business doesn’t rely on the owner
- Streamline SOPs, financials, and bookkeeping (GAAP-based financials go a long way)
- Document client contracts, reduce concentration risks, and clarify margins
These efforts help the business appear “pretty” to buyers and command a higher multiple.
Prepare Due Diligence Materials in Advance
The smoother your data filing, the smoother the deal.
- Organize a centralized data room with 3–5 years of financials, contracts, client lists, and employee data
- Anticipate potential concerns (earnings quality, client churn, employee retention)
- Be honest—don’t try to hide financial blemishes. Transparency builds trust and avoids deal derailment
Craft your narrative around known issues—explain them before buyers do.
To avoid surprises, engage professionals (CPAs, M&A advisors) to prepare you—ideally, years before selling.
Structure That Supports Value and Transitions
Consider Deal Structure Carefully
Don’t focus solely on headline price. What matters is how much ends up in your pocket after:
- Taxes
- Fees and commissions
- Deal terms like earn-outs, seller notes, and indemnities
Some buyers include earn-outs tied to future performance—which can add upside but also risk. Plan structure that aligns with your comfort and timeframe.
Vet buyers for fit—not just financially, but culturally and operationally. Employee retention and customer stability after the sale depend on it.
Emotional Resilience: Prepare Yourself Too
Selling your business is an emotional journey. Randy likened his role to part consultant, part therapist—owners often wrestle with “seller’s remorse,” fear of the unknown, or loss of identity.
To manage this, he recommends:
- Planning your next chapter—what will you do post-sale?
- Setting expectations early—know the tax hits, timing, and deal patterns
- Working with advisors who can explain each step and mitigate surprises
When you understand what’s coming, the emotional toll diminishes, and you remain in control.
In this Podcast episode with Randy, you will learn:
- How to maximize value by being a proactive deal maker.
- Why having only one buyer puts you at a deficit.
- How to identify your time horizon.
- The importance of identifying the type of buyer you’re targeting.
- How to get in control of framing the narrative.
We are fortunate to have Randy available to spend time with us on this edition of Stride 2 Freedom. If there is a speaker you’d like us to interview, let us know. Stay well. Stay safe. Stay healthy.
This Stride Live Webinar is hosted by Stride Services. Stride is a comprehensive financial solutions provider, specializing in outsourced bookkeeping, accounting, tax, and advisory services for Managed Service Providers.
If you’re interested in being a featured guest on our Live Webinars or if there’s a subject matter expert you’d like us to interview, please let us know!
Show Notes + Transcript:
Randy Katz LinkedIn |Â Email
Synesis Advisors
Webinar Transcript:
Things to Consider When Selling Your MSP With Randy Katz, Synesis Advisors and Business Broker
