Regulatory Diligence Counsel for IT Services & MSPs Acquisitions
Independent sponsor counsel for IT services and MSPs, focused on Regulatory Diligence and the deal mechanics that protect sponsor economics and LP alignment.
The economics on a IT services and MSPs platform deal usually hinge on a handful of structural decisions. Regulatory Diligence 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 Regulatory Diligence actually gets structured.
Map every license and permit, with renewal dates and transfer mechanics.
Identify regulatory consent requirements that require pre-close filings.
Address pending or threatened regulatory actions in the disclosure schedules.
Plan the post-close regulatory calendar with the operating team.
In IT services and MSPs, layer in MSA assignment review with carve-outs noted as part of the Regulatory Diligence workstream.
Treating regulatory diligence as a sub-section. In regulated industries, it is the whole deal.
"Regulatory continuity is the closing condition that fails most often. Diligence it first, not last."Jason Powell · Regulatory Diligence
The deal is one thing. The capital that opens up after close is another.
Refinancing, recaps, growth rounds, and the right strategic conversation eighteen months early are all downstream of relationships that take years to build and minutes to use.
Related deal pages.
Independent Sponsor Economics for IT Services & MSPs
The package of deal-by-deal carry, management fees, and transaction fees that compensates the independent spo…
Management Fee Structuring for IT Services & MSPs
The annual fee paid by the deal entity to the independent sponsor for ongoing oversight, board service, and p…
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…
Equity Rollover for IT Services & MSPs
The portion of seller proceeds reinvested into the post-close entity, aligning seller with buyer.
Regulatory Diligence for Healthcare Services
roll-up of physician practices and ancillary service lines
Regulatory Diligence for Home Services
regional roll-ups of HVAC, plumbing, and electrical operators
An LOI on the desk, a IT services and MSPs target, and a Regulatory Diligence question worth a real conversation.
Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.