by Madhur Duggar, Excendio Advisors
All the tailwinds behind growth in the IT sector are here to stay but they will begin to stabilize. If you are an MSP owner in the $2M-$5M revenue range, 2025 is the golden year to exit. In this episode, Madhur Duggar shares 4 key reasons to consider selling now.
- Peak Market Conditions: Public and private market valuations are at all-time highs and good news is bad news. On Feb 10th, the BLS announced 265K jobs for Dec 2024, but the markets dropped 1.5% because of rate hike worries!
- Slowing Post-COVID Growth: IT demand is normalizing. The days of 15%+ top line growth are behind us. We expect 10% topline growth going forward and the ratio of SMBs to MSPs to decrease. Competition will only intensify.
- The AI Revolution will favor larger MSPs with Industry Expertise: Clients need advice on how to use to AI to grow. Do you have industry expertise in their sector? Can you recruit top talent? Your bigger local competitor does and can.
- Buyer-Seller Imbalance: Too many sellers, too few buyers. Get out before the MSP exit tsunami gets here. There are 4.5K MSPs in the $2-$5MN Revenue category today. In 5-years there are going to be 25K MSPs in your weight class!
For further detail on Why 2025 Could be the Best Time for MSPs to Sell, please click here.