An MSP owner finds a buyer, signs a letter of intent and starts thinking about the number. Hartland Ross has watched hundreds of those deals from the middle, and he argues the number is only half of what a seller agrees to. The terms decide what you are actually paid, and how long you stay.
Hartland is Founder and Managing Partner of The Host Broker, a brokerage for MSPs and IT services businesses based in Vancouver, British Columbia. In this conversation with Josh Peterson he walks through LOI break fees and exclusivity, how to choose a buyer on fit, how long sellers really stay after the close, and why earnouts exist. Josh brings two deals he saw up close: a $200,000 break fee paid when a buyer walked away, and a seller who realized days before closing that the buyer would inherit his $100,000 hardware investment.
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What We Cover in This Episode
- Unpack a $200K LOI break fee, and why most never survive- Explain how exclusivity works once an LOI is signed- Decide whose LOI to work first when there is no asking price- Turn the tables and interview the buyer- Rank offers on fit before money- Handle a seller who becomes the problem after the close- Set realistic expectations for how long a seller stays- Weigh price against terms in an earnout- Spot a buyer who needs the earnout to finance the deal- Settle hardware as a service equipment before closing
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Guest Links
Guest LinkedIn: https://www.linkedin.com/in/hartlandross/Company Website: https://www.thehostbroker.com/
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SEO Keywords
- selling an MSP- MSP earnout- letter of intent- LOI exclusivity- seller transition period- MSP acquisition- MSP exit strategy- MSP valuation- The Host Broker- managed service providers
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Credits
Host: Josh PetersonGuest: Hartland Ross, The Host BrokerProducer: Bering McKinleyEpisode: #129 - Selling Your MSP - My Price, Your Terms