Regardless of whether you’re an entrepreneur who started their MSP business with a solid plan and definite growth targets and goals, or if your business has simply grown organically without any real thought as to what your end goal will be, it’s important to have an exit strategy in place… because you never know what unexpected twists life has in store for you.
When and how you will leave your business? Like most owners, your company has been your baby. Through all the ups and downs, you’ve poured their heart and soul into seeing it succeed, and it’s hard to let that go. But, eventually everyone exits their business, so it’s a good idea to give some thought to how you plan to leave yours.
Ideally, you would love to have a smooth transition, passing on your business to a new owner or your partners, and then heading off to pursue your retirement dreams. But sometimes, things don’t go so smoothly. Things happen that could force the sale of your business… declining health, a difficult divorce, conflict with partners, and death. While these are all terrible things, having a plan for the unplanned will help mitigate any potential losses on the sale.
Your plan for exiting your business profitably starts with identifying how to make your business attractive to potential buyers, and then implementing these measures. Ensure that your MSP company has defined systems in place and that your team can run effectively without you there. Make sure all the money matters are looked after in terms of what’s coming in and going out. Continue to grow your company by adding new clients, and sign them to multi-year contracts to ensure a steady flow of monthly recurring revenue.
“Taking steps today to secure the value of your business will help protect your legacy, ensure business continuity, and maintain employee and client stability.”
– Jason Dacosta, Founder and President, MSP Corp
What about the worst case scenario that no business owner wants to think about, let alone plan for? What if you were to die and the business would pass on to your spouse, adult children or business partner? Would they be prepared to carry on your legacy and take over the day-to-day operations?
Creating an estate plan and ensuring that your will is up to date are key to keeping the business alive after you’re gone. And be sure to communicate your wishes with your family members and business partners. The best surprise is no surprise.
While you may not be planning on exiting your MSP business any time soon, it’s comforting to know that you have a plan in place should something unexpected happen.
MSP Corp understands you’ve worked hard to build your business and you want to protect it. With a mission to be a world-class business partner for MSP owners across Canada, we actively seek to acquire and partner with owners looking to secure the value of the business they have built and provide a seamless exit process that ensures business continuity and employee and client stability.
Contact us today to learn more about selling your business and maximizing its value.