What is my managed services practice worth? I’m sure a lot of you have been asking yourselves this question recently. Most of you who have been involved in building a managed services business have at least contemplated the day when you can divest yourself of a precious and valuable company. However, in order to get to that happy day, you have to be willing to invest in your company. No, I’m not talking only about money; i’m talking about time and other resources that can have a very big impact on how your company operates and on how people view your company.
There are some very simple things you can do to help increase the value of your company and prepare for the day when you want to sell. On a side note, if you are buyer looking for MSP’s these items also apply to you.
Keep Good Records
IT providers are very adept at solving technology problems but not all IT providers are good at keeping financial records. No, I”I’m not talking about just having a copy of QuickBooks on your PC. Companies, even MSP’s, have to have good financial records for a number of reasons. First, keeping good financials will help you make better decisions about your company. Any well run MSP has access to solid financial data so they can understand exactly how their organization is operating. Equally as important is the ability to sell or merge your company. If you are planning on going through a merger or acquisition (or even a funding round) you will need to have your financial records in good order. That means having an accountant review your financials and keep them organized on a regular basis.