Podcast · IT By Design

To Sell or Not to Sell: Navigating the MSP Exit Dilemma with Mit Patel

Sunny Kaila and Mit on the sell-or-hold decision every MSP owner faces: defining enough, timing, preparation, and a business that runs without you.

Updated

In this article 6 sections

The decision every MSP owner eventually faces

Sunny Kaila and Mit Patel work through the question most owners reach at some point: sell or hold. Mit has lived it, building Netstar over about 20 years into a strong, well-run MSP and going through his own exit. His view: most owners rush it.

Know your number before you decide

Start with personal clarity. How much is enough, and how much of it needs to come from selling the business. From there, work backwards: what revenue and profit does the company need to be worth that figure. Mit calls this a value creation plan, knowing what the business needs to be worth in years 1, 2 and 3 rather than guessing.

Ask why you want to sell. Mit estimates about three quarters of owners cannot really answer. A friend sold, the team is gone, they are tired. None of those is a strategy.

The 24-month pause

Mit’s clearest piece of advice: when you start thinking about selling, most owners have sold within 12 months. Pause instead. Give it 24 months and maximise the value first, so when you do sell you get the most out of it. Selling on burnout, in a hurry, into hype, tends to mean selling for less than the business could fetch.

Alternatives to selling

Bring in a CEO or MD who may run it better than you. Accept it as a lifestyle business and engineer yourself out of the parts you dislike. Mit frames most business problems as people, structure and process, with people first: hire the best person you can, pay more for an A player, and put the right people in the right seats. Beware shiny-toy syndrome, chasing the new instead of making what you already do better.

About Assurix

Mit founded Assurix in 2025, after this episode. Assurix is the live trustmark for MSPs. Assurix independently assesses 59 controls across 2 pillars, and both must pass. An Assurix assessor signs off. Live-measured controls are checked every six hours and the rest on a set cycle. A failure opens a 30-day window to fix it, and the Trustmark is suspended publicly if it is not fixed. Its 40 security controls are aligned to the NCSC Cyber Assessment Framework 4.0, with 19 operational controls built for MSPs alongside them and evidence pulled live from the MSP’s existing tools. A prospect can open the MSP’s Trust Portal to see what is checked, and its current status shows on the Trustmark Directory.

Common questions

Should an MSP owner sell or hold?

Start with personal clarity: how much is enough and how much must come from the sale. Then work backwards to what the business needs to be worth.

Why wait 24 months before selling?

Mit says most owners sell within 12 months of first thinking about it. Pausing for 24 and maximising value first means you get more out of the sale and avoid selling on burnout or hype.

What are the alternatives to selling?

Bring in a CEO or MD who may run it better, or accept a lifestyle business and engineer yourself out of the parts you dislike.

What is the Assurix Trustmark?

The live trustmark for MSPs. Assurix independently assesses 59 controls: 40 security controls aligned to NCSC CAF 4.0 and 19 operational controls built for MSPs. Live-measured controls are checked every six hours and the rest on a set cycle. An Assurix assessor signs off. A failure left unfixed for 30 days suspends the Trustmark publicly.

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