They say death and taxes are the only certainties in life—but for many MSP owners, there’s a third inevitability no one likes to talk about: the day you step away from the business.
And yet, for all the endpoint monitoring, cloud backups, and disaster recovery plans, precious few IT service providers have a solid exit strategy. Maybe it’s British modesty. Maybe it’s the illusion of immortality that comes from beating ransomware at 3am. Or maybe too many of us have been binge-watching Succession and can’t bear the thought of our business turning into a sibling knife fight over who gets admin rights to the RMM dashboard.
Whatever the reason, it’s time for a reality check. Because whether you’re 35 or 65, the succession question isn’t if—it’s how. And like the Roy family empire (minus the helicopters and hostile takeovers), MSPs need a plan for who’s taking the reins. Here are three options—each with its own drama, opportunity, and yes, occasional cringe.
The Shiv Route: Pass the Torch to the SLT. Got a solid senior leadership team? Great. Now’s the time to start grooming them—not just for bigger roles, but for actual ownership. Internal succession is one of the most common—and often most successful—paths in the MSP world, according to the ConnectWise 2024 MSP Business Maturity Report, which found that over 40% of firms expect to hand leadership to existing internal talent. As Gary Pica, founder of TruMethods, puts it, succession planning isn’t just about choosing a person—it’s about preparing the business itself to operate without you.
But this route requires honest conversations, shared values, and a plan for equity and control. You can’t just hand over the kingdom and expect gratitude. Shiv Roy would like a word. It also means accepting that your SLT might lead the company in directions you wouldn’t have. The key is trust and a well-structured leadership development process—not just a crossed-fingers handover at your retirement party.
The Roman Option: Sell to Private Equity. You know who loves cash flow, repeatable revenue, and long-term contracts? Private equity. And with the MSP space hotter than a newly discovered zero-day, there’s plenty of capital sniffing around. According to PitchBook, UK and European tech services saw over £4.7 billion in private equity investment in 2023 alone, with MSPs among the most targeted segments due to their predictable revenue streams and customer stickiness. James MacGregor, Partner at Silverpeak, says there’s an enormous appetite for well-run MSPs that can demonstrate strong EBITDA and operational maturity.
The PE route can offer a tidy payday, a structured handover, and possibly a few years on an “earn-out” to help you land the plane. But be warned: some investors bring long-term strategy. Others bring spreadsheets, consultants, and quarterly pressure that makes Succession’s boardroom scenes feel like team yoga. At least have the discussion, finance experts like Adam Zoldan and Paul Billingham have forgotten more about this realm then most will ever know and are worth consulting even if PE is not your prerfered route.
The Kendall Gambit: Merge and Multiply. Maybe you’re not quite ready to walk away—but the idea of joining forces with another MSP (or a national consolidator) is starting to sound appealing. Strategic mergers can unlock scale, talent, and access to bigger clients, not to mention spread the risk. In the Kaseya 2025 State of the MSP Industry Report, over 30% of MSPs said they were actively exploring mergers or acquisitions within the next two years, driven by market consolidation, cybersecurity complexity, and growing client demands. Combining with the right partner, says Richard Tubb, MSP growth consultant and host of TubbTalk, can open doors to markets and capabilities that would take years to build organically.
That said, mergers are like blended families. Expect tension. Expect compromise. And above all, expect lawyers. Still, with the right partner, it can be a powerful way to create a business that outlasts you—without having to give up control immediately. Just remember: no one wants to be the guy who merged with a competitor only to get quietly sidelined six months later like Cousin Greg in a pitch meeting.
Exit Isn’t a Four-Letter Word. Running an MSP is hard. Letting go can be harder. But putting off the conversation about your future doesn’t make it go away—it just makes the eventual transition more painful (for you and everyone else). As Paul Dippell, founder of Service Leadership Inc., famously said, the best-run MSPs are always built to be sold—even if the owner never plans to sell. It’s about creating optionality.
So whether you’re plotting a five-year exit or still clinging to the founder's chair like Logan Roy at a shareholder meeting, start laying the groundwork now. Build your bench. Know your worth. And above all, pick your successor before someone else does it for you.
Because in the MSP world, as in Succession, there’s always another episode coming.
