Exit Preparation Counsel for IT Services & MSPs Acquisitions
When the deal is IT services and MSPs and the question is Exit Preparation, the structure decisions in the first 30 days outlast the next five years. This is where Jason Powell works.
The economics on a IT services and MSPs platform deal usually hinge on a handful of structural decisions. Exit Preparation is one of them.
The typical IT services and MSPs platform sits at $8M to $100M EV with EBITDA in the $2M to $18M range. The thesis runs on MSP platform with regional or vertical-specific bolt-ons. An MSP at 70% recurring revenue trades at one multiple, at 90% trades at a different one. The mix is the deal.
How Exit Preparation actually gets structured.
Clean the cap table 18 months before the planned exit window.
Refresh the IP, employment, and customer contract files for diligence readiness.
Build a quality-of-earnings ready financial package well before bankers come in.
Coordinate sponsor exit economics with the LP waterfall and any rolled-equity holders.
In IT services and MSPs, layer in MSA assignment review with carve-outs noted as part of the Exit Preparation workstream.
Starting exit prep when the banker calls. By then, every fix costs price.
"Exit prep is what separates a 6x outcome from an 8x outcome. The work starts before the banker."Jason Powell · Exit Preparation
The deal is one thing. The capital that opens up after close is another.
Most independent sponsors solve the closing capital and then run into the post-close capital problem alone. The capital markets relationships that matter at month 18 are part of this practice.
Related deal pages.
Transaction Fee Structuring for IT Services & MSPs
The fee paid at closing to the independent sponsor for sourcing, structuring, and closing the platform deal a…
Working Capital Adjustments for IT Services & MSPs
The closing-date true-up that protects the buyer from receiving a business stripped of normal-course working …
Representation & Warranty Insurance for IT Services & MSPs
A buyer-side insurance product covering breach of seller representations, reducing seller escrow and indemnit…
Indemnification for IT Services & MSPs
The seller's contractual promise to compensate the buyer for breaches of representations, covenants, and spec…
Exit Preparation for Healthcare Services
roll-up of physician practices and ancillary service lines
Exit Preparation for Home Services
regional roll-ups of HVAC, plumbing, and electrical operators
Bring the IT services and MSPs deal. Get Exit Preparation done right.
Direct counsel from a securities and M&A attorney with billions in structured transactions, the independent-sponsor-native playbook, and the capital markets network that opens up post-close.