Evolved Radio

The episode covers substantial practical ground on MSP sale preparation, including valuation mechanics (EBITDA vs. net profit), deal structures, timing considerations, and different buyer types. However, much of the advice is relatively standard M&A thinking (get a tax lawyer, understand your multiples, prep emotionally) without deeply novel operational or financial insights. The discussion of the 4-5x multiple range for small MSPs and the 90% sub-$1M market is useful context, but the episode lacks granular how-tos or counterintuitive frameworks.

“You shouldn't feel any pressure. Outside of what's right for you and your family and your situation.”

“There's always a market for a well run profitable business. It doesn't matter what else is happening out the world.”

The conversation rehashes well-known M&A themes: emotional attachment to selling, the danger of staying post-acquisition, deal structure trade-offs, and the importance of preparation. The framing of the 3-5 year prep window and the grief metaphor for selling a business show some personal reflection, but the core frameworks (multiples, EBITDA, buyer considerations) are standard industry fare. The seller-financed-to-employees angle and the critique of PE risk-taking are present but not deeply explored.

“When you sell your company. You are entering into a major life event probably.”

“There's a hole in my heart. You know, something's missing. And I tell a lot of people, like, I felt like I just sold my cat.”

Amy Babinchak is a 22-time Microsoft MVP with direct operational experience running an MSP, selling it, and now working with other founders through Selma MSP. She has authored a book on the topic and speaks from lived experience rather than theory. She demonstrates practical knowledge of deal structures, valuation, and the emotional side of exits. Her credibility is genuine, though she positions herself more as an operations/strategic guide than as a deep M&A finance expert (which she acknowledges).

“Amy is a 22-time Microsoft MVP award winner and co-host of the SMB Community Podcast and a well-known speaker in the industry”

“I put a chapter right at the beginning of this book on the emotions of selling your business because it totally took me off guard when it happened. Um, you know, I had been helping people sell their business for 10 years, but I'd never sold my own.”

The episode provides some concrete data points: 4-5x multiples for small MSPs, 5-8x for medium, the 90% sub-$1M industry composition, 2-year post-acquisition earnouts as common, and 20% equity reinvestment structures emerging. However, specificity is limited. Few named examples are given (only an Alaska deal mentioned in passing), no specific client cases are named, and most numbers are ranges rather than real transaction details. The discussion of deal mechanics is conceptual rather than grounded in specific dollar figures or timelines.

“If you're a smaller MSP, you're gonna be in the four to five range. If you're a medium-sized MSP, five to eight range, and if you're, if you're a true outlier, you'll go above that.”

“Uh, I heard recently of a firm that sold up in Alaska for really high multiple because it was one of the only well-run firms in the area”

Todd Kane asks solid, directional questions that move the conversation forward and occasionally challenge Amy's assumptions (e.g., asking about her different perspective on small MSP valuations, pushing back on the PE narrative). However, follow-ups are often brief and the host doesn't press hard when Amy makes unsupported claims (e.g., statistics about mortality post-retirement). The discussion feels collaborative rather than adversarial, which is appropriate but misses opportunities for deeper probing on contradictions or assumptions.

“Yeah, is a similarly, I, I advise people, they're saying, oh, I'm thinking of selling my business. I'm like, great, you know you're in your. Mid to late forties. So what do you plan to do with your life?”

“The structure of the sale, I think is, is another aspect that, you know, someone who's not familiar with the, sort of the details of m and a. There's a whole, you know, there's probably four to five to 10 different ways to, to slice this, up”