Hello Freinds!
While this list is the foundation for a great, IT managed service provider (MSP) the foundation can be used in any service-based business, and to hit 2 birds with 1 stone, it’s also a great due diligence checklist.
8 Secrets for Selling Your Service-Based Business Checklist
Financial Fitness
o Accurate financials and bookkeeping
o Correct use of GAAP
o Correct gross profit reporting
o Correct calculation of EBITDA
Revenue Readiness
o Have an industry-standard or better Recurring Revenue
o Service-based companies can package services in yearly contracts
Strong Management
o Build a strong management team that can communicate
o Take a month off and see if the business runs itself
Strong Vertical Presence
o Pick your lane and stay in it (service the same type of customers in an automated way)
Customer Retention & Satisfaction
o Regularly survey customers and get testimonials
Sustainable Success
o Make sure that no one person is a single point of failure for any task
o Hire in two and cross-train
Sales and Marketing
o Build a strong reputation with video testimonials and a contact/email list
o Make sure that sales and marketing work together and get consistent results
Intellectual Property Presence
o Have protected trademarks, copyrights, trade secrets, and patents
o Document every process and back it up
Meme Of The Week
Post Of The Week
Look at history and see that from chaos comes order! Close more deals this recession with the ASE consortium; we have the best deal flow, dry powder, M&A SMEs, and vetted buyers.
Deals Of The Week
Here are all of our off-market companies for sale and a list of vetted business buyers:
https://docs.google.com/document/d/1wU2ZctV_KZnNDPpS_NNpLNp2nhNMLxOn5YbVZIwlyQU/edit?usp=sharing
Best viewed on PC for a clickable table of contents on the left.
And bookmark the link. It's a live Rolodex!
*Disclaimer these deals are usually a better fit for a strategic buyer; because great deals don't last very long on here. At the same time, since it's not a public site, there isn't as much competition as public sites. So you ought to check the deal sheet weekly. Reach out to us for the NDA and full CIM on any of these deals*
Financial Architecting Tip Of The Week
Deal Trophy Of The Week
“Way definition - a road, track, path, or street for traveling along.
Dojo translation - place of the Way - A dōjō (道場, Japanese pronunciation: [doꜜː(d)ʑoː]) is a hall or place for immersive learning or meditation. This is traditionally in the field of martial arts, but has been seen increasingly in other fields, such as meditation and software development. The term literally means "place of the Way" in Japanese.”
Business Buyer Of The Week
We work with over 20 of the most active buyers in the United States across every industry as M&A advisors.
Click here for our criteria:
https://docs.google.com/spreadsheets/d/1oGisPRVIa2TsG4n_G8oNOrlLh2PoxiSObtJlRZISv7s/edit?usp=sharing
This buyer has a $2.3B mandate: