Laura Cook is a strategic advisor who helps expert business owners earning between £250k and £3 million break free from the trap of being tied to the day-to-day business.

She works with founders who feel stretched thin and want to scale the business without losing quality or burning out. She positions them for freedom for growth and even multimillion pound exits.

Laura has helped numerous business owners to triple their valuations, slash their working hours and build businesses that thrive without them.

An Interview with Laura CookThe Emotional Side of MSP Exits

While it might seem on the face of it that Laura’s work is about practical matters, she agrees that there’s an emotional aspect too. Once you sell your business, you might find yourself thinking, ‘Well, who am I now?’ Laura says you need to think carefully about what you’ll replace your business with.

“What else is there in your life? What could you look forward to? A business can be very consuming. You’ve watched it grow and it’s so integrated into your everyday life that there can be an emotional impact. So if you do want to sell your business, start thinking about it now.

“Ask yourself, ‘What is going to replace this and who I am as an individual?’ You slowly start to mentally untangle yourself and then you can see an exciting path ahead of you. That will pull you into the next phase, which might be completely different to what you’ve done before. Take some time off and reassess.” 

What if the Business Can’t Run Without You?

As the founder and the person with the technical expertise, you will feel like the business couldn’t carry on if you left, says Laura. “This is a common challenge my clients have. So to start off, I encourage them to imagine a two-week holiday from the business.

“That means no phones, no internet, no ways to solve a problem. And we start looking at what would break, which clients would stall and which projects would fall down. Then we look at where the team would struggle to make a decision. It seems intimidating at first, but we fix those challenges one by one.

“Then you’re no longer responsible for everything. We look at how to delegate tasks or even eliminate them. And because it’s a hypothetical holiday, it’s a safe space to work out the weak points. We systematically go through them and help you build a team who are skilled and confident to take the tasks away from you.”

How to Strategically Prepare Your MSP for Sale

If you’re getting ready to sell, Laura suggests reviewing what your MSP looks like. “That includes the tech stack, your contracts, and recurring revenue. But those are the minimum a buyer would expect. There’s a difference between a financial buyer, who’ll look at the nuts and bolts, your profit and what they could make, and a strategic buyer.

“They’re going to look at your business and think about if they buy it, what is it going to do for them? How is it going to accelerate their growth or how is it going to allow them to enter a new market? For example, they might want to operate in a different country with a different culture. Your MSP could be the key to them succeeding.

“They think about the extra leverage they could have by owning you. They’ll pay a premium if you do something different or that’s not easily replicated by your competition. A strategic buyer can be a better option because it’s often financial buyers who erode the culture, cut staff and budgets.”

Make Yourself a Good Financial Acquisition

There are things you can do to make your MSP an appealing acquisition, and Laura identifies three levers to focus on. “First is positioning. the more generalist you are, the lower multiple you’ll end up with. The more niche you are, the higher multiple.

“Second is your profitability. Financial transactions are based on profit multiples, so you need to have a couple of years of good profit history, some sustainability and continuity going forward. The answer to this is not just more clients. It’s about prioritising your most profitable service and customers.

“The third one is owner independence. The more independent you are, the more valuable it is to somebody. They can pick up your MSP and put it into their company. They aren’t going to be as dependent on you to help with that integration. They’re most likely going to need some support, but the business and the team should be able to run without you.”

Why You Should Plan Your MSP Exit Even if You Change Your Mind

There’s no downside to thinking about structuring an MSP for sale, even if you’ve got no plans to sell right now. It’ll make your business better, and if anything changes unexpectedly you’re in a much better position to exit quickly than not at all.

Laura adds: “It’s not about waiting for some day in the future. It’s about creating options for today. When your MSP is owner independent that creates so much opportunity for you. You could start a second business or add things to your life. And you can keep your MSP too.

“Often when I work with a client, they fall back in love with their business. There is so much benefit from starting today on MSP exits. Regardless of what you want in the long term, it just creates less stress, more freedom, more wealth, more finances and more opportunities.” 

How to Assess the Value of your MSP

Of course, what everyone wants to know is, how can MSP owners go about value in their business effectively? And as Laura says, you can have a professional valuation from an accountant. “That will give you a suggested multiple based on industry averages, what’s historically happened.

“At the end of the day, it’s always going to be based on what someone’s prepared to pay and it’s going to be attached to those financials. But it also looks at any IP, trademarks and owner independence. A potential buyer will look at the risks and opportunity, so find ways to make your business look more attractive and profitable.

“When you start to sell, you’ve got to step into the shoes of the buyer. They are now your customer. How can you position yourself to be as strong as possible for them to buy? As well as the things we’ve previously mentioned, you have to build a narrative around how your business will benefit them.” 

How to Connect With LauraLaura Cook websiteConnect with Laura on LinkedInHow to Connect With MeSubscribe to TubbTalk RSS feedSubscribe, rate, and review TubbTalk on iTunesSubscribe and rate TubbTalk on SpotifyFollow TubbTalk on iHeartRadioFollow @tubblog_msp on InstagramMentioned in This EpisodePSA/RMM tool: SuperOpsIT management software: ConnectWisePSA software: AutotaskBook: Michael Gerber: The E-Myth RevisitedPersonal brand expert: Laura PearmanPersonality test: Gallup StrengthsFinderYou Might Also be Interested inSell, Stay or Evolve: The Truth of MSP LifeHow to Conduct an Effective Employee Exit InterviewWhy You Should Encourage Your MSP Employees to Switch off on Holiday