Diligence · IT Services & MSPs

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.

EV range $8M to $100M EV EBITDA $2M to $18M Audience Buy-side / Sponsor
The deal context

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.

The moves

How Regulatory Diligence actually gets structured.

  1. Map every license and permit, with renewal dates and transfer mechanics.

  2. Identify regulatory consent requirements that require pre-close filings.

  3. Address pending or threatened regulatory actions in the disclosure schedules.

  4. Plan the post-close regulatory calendar with the operating team.

  5. In IT services and MSPs, layer in MSA assignment review with carve-outs noted as part of the Regulatory Diligence workstream.

The common mistake

Treating regulatory diligence as a sub-section. In regulated industries, it is the whole deal.

Jason's take
"Regulatory continuity is the closing condition that fails most often. Diligence it first, not last."
Jason Powell · Regulatory Diligence
Capital after close

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.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
TALK TO JASON

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.