Running a successful MSP takes more than technical know-how. Owners also need to make smart business decisions, manage their resources and think ahead about growth or a potential sale. Danny Astin, co-founder and managing partner emeritus of Ciardi Ciardi & Astin, has seen many of those challenges firsthand. His Wilmington, Delaware-based law firm has spent more than 50 years helping businesses, including MSPs, navigate everything from operational difficulties to acquisitions and ownership transitions. Drawing on that experience, Astin told ChannelPro that MSP owners don't always need to hire their way out of a problem. Sometimes the best place to start is with the people and resources they already have, supplemented by advice from peers, mentors and trusted advisers.
Astin also emphasized how MSPs have evolved from technical service providers into essential business advisers. "It used to be the lawyers and the accountants, but now the new trusted advisers are the MSPs," he told ChannelPro. That expanded responsibility requires providers to understand customer business challenges, not simply deliver technology. For owners considering an eventual exit, Astin recommended maintaining accurate financial records, sound corporate governance and well-documented contracts. Weak documentation, excessive debt and unfavorable ownership structures can undermine an MSP's valuation.
For MSPs evaluating acquisitions or preparing to sell, due diligence and deal structure can be just as important as profitability. Astin cautioned against relying on informal valuations, overlooking whether customer contracts can be transferred or accepting uncertain future payments without understanding the risks. Building a more valuable business starts well before a transaction, with disciplined recordkeeping, stronger management practices and a clear exit strategy. As Astin advised, owners should pursue deals that make financial sense under both favorable and unfavorable conditions.
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Source: ChannelPro Network
