Should You Sell Your MSP?
This article takes on a big question: Should you sell your MSP? It’s a business question, a personal question, and a question on a lot of MSP owners’ minds.
Maybe it’s on your mind, too. Maybe you run a small to medium-sized MSP business, which we’ll define as a company bringing in $300k – $3M in annual revenue. Maybe you’re feeling pressure to achieve growth and scale – and not only fast, but faster than ever. Maybe you’ve glimpsed that the road ahead is only getting steeper for your small, independent outfit, and that mergers and acquisitions offer a potential way forward – and out of trouble.
But whatever your plans may be, the following is something every MSP owner ought to know: while it’s true that the right deal can catapult your MSP forward – improve margins, add crucial capabilities, increase operational efficiency, etc. – the wrong deal can do the exact opposite. Besides, M&A is notoriously difficult, with daunting failure rates that beg the question…
Why consolidate at all?
This simple question brings us to the crux of the matter:
Our industry’s at a turning point. Pursuing M&A comes with plenty of risks (although there are ways to mitigate them), but staying small and independent in a climate of consolidation? That could easily prove even riskier.
So should you sell your MSP? The short answer to that question is a cautious yes. All things being equal, if you’re a small to medium-sized MSP, M&A offers a viable way forward – a robust “survival strategy ” – for getting through the next 5 years.
But let’s dig in a little deeper, and talk about some specific reasons to sell your MSP business.
Reason #1 – You’re ready to retire!
Let’s not beat around the bush – this industry is tough! Burnout isn’t some bogeyman either, but a very real phenomenon that countless MSP professionals struggle with. When you’re running a small to medium-sized MSP, oftentimes you play numerous roles, wearing different hats throughout the day and putting in long hours just to keep things afloat. After years and years of this, it’s only natural to feel that you deserve a break – a real break, too, and not the checking-emails-at-the-airport kind of break.
Bottom line: Selling your MSP can be a great way to escape the grind, whether by allowing for retirement or a transition to a lower-stress role.
Reason #2 – Growth has stalled.
It’s no secret that the majority of this industry has trouble growing – ‘growing pains,’ if you will. A lot of this comes down to scale – or a lack thereof: small and mid-sized MSPs typically don’t have the richly scalable processes required to accommodate serious growth, if they’re able to achieve it in the first place.
Bottom line: Selling your MSP can solve the scalability problem with the stroke of a pen – assuming you find the right buyer.
That said, be wary of merging with similar-sized MSPs in hopes of unlocking scale. These deals often fail to eliminate the “small MSP problems ” – and can in fact make them worse.
Reason #3 – No time, no freedom.
We touched on this in reason #1 – how hard it is to run an MSP, especially when you are – like most MSP owners – operating “on an island.” But just because you’re eager to escape the grind, doesn’t mean you’re ready to retire altogether. In fact, for some MSP owners, selling isn’t a way out so much as a way forward – a way to accomplish important professional goals much faster and with less stress. When you sell your MSP, you can step away from the brutal workload of a solitary entrepreneur, and embrace the more balanced lifestyle of a team player.
Bottom line: Selling your MSP can give you more time and freedom – time to focus on core professional goals, and freedom to pursue your passions outside of work.
Reason #4 – Derisk your future.
We’ve talked about how risky it is to stay small and independent as an MSP in 2025 – and how things aren’t getting any easier for “the underdog.” Our prediction is that MSPs bringing in less than $3M in annual revenue have about 5 years to make some serious changes if they want to remain competitive, relevant, and – to be blunt – in business. Securing an M&A deal can mean securing wealth now, as opposed to gambling on your MSP’s future growth and success.
Bottom line: Though risky in themselves, M&A deals present MSP owners with a less uncertain path forward. A generous payout can mean an instant boost in financial security. It can also mean – depending on the buyer – a chance at future upside through equity, earn-outs, or a stake in a larger, faster-growing conglomerate.
How does The 20 ‘derisk’ its MSP acquisitions?
We’ve acquired 39 (and counting) MSPs here at The 20 in less than three years. What’s our secret? Our approach to risk? Check out this article for a deep dive into our unique strategy.
Reason #5 – Outpaced by larger MSPs.
Selling doesn’t have to mean giving up – it can mean leveling up. Joining forces with a bigger player gives your MSP access to deeper resources, broader expertise, and stronger infrastructure. From upgraded tools and streamlined processes to new service lines and sales muscle, it’s a way to punch above your weight in a market where scale increasingly wins.
Bottom line: In many cases, selling isn’t the end of the journey, but a savvy adaptation to a new competitive climate. So ask yourself: Is staying independent really best for my clients, my employees, and my business?
Advice for Smaller MSPs (< $1M): Build to Sell
While the time is ripe for securing a profitable exit, the last thing we recommend is rushing into a deal – or jumping blindly at the first opportunity that comes your way. M&A deals are tricky, with lots of moving parts. Moreover, securing the best possible valuation for your company requires planning, strategy, and expert guidance.
Bottom line: If you’re 12 to 24 months out from an M&A event, and you’re not already thinking about financial, operational, and structural optimization, you’re setting yourself up for regret.
You don’t get paid for potential. You get paid for preparation.
Want some help preparing to sell?
If you’re an MSP under $1M and serious about building something worth buying, it’s time to stop going it alone. The 20’s peer group is built to help small MSPs scale fast and exit smart.
Talk to Tim!
Book a call with Tim Conkle – founder of The 20 and the architect behind 39+ MSP acquisitions. Tim’s available to talk through your goals and give you a clear picture of what a deal with The 20 actually looks like – how it’s structured, what’s on the table, and what you can expect as an owner (hint: no earnouts).
Whatever you do, don’t stand still. This industry’s not going to wait around for the stragglers, and you don’t want to be playing catch-up.