Consider Selling Your MSP/MSSP and Becoming Part of the Datapath Family

Why Sell to Datapath?

FAQ

Frequently Asked Questions

Why Should I Join Datapath?

Great question! Well, for starters we’re not jerks. We are passionate about people, and what we do. In addition, we’re rapidly growing, and we feel we’re doing it the right way. We have happy customers and we’re innovating in both the MSP and MSSP industry.

We also have built out our own network operation center (NOC) and security operation center (SOC). We feel like we’re putting the right pieces together, we just need more great people to help us accomplish our mission.

Does This Make Sense for Me? 

We can’t answer this for you, but we can start the conversation and we’ll be honest about whether we think you should consider it. It is a change, Datapath will buy your company – but often a good step after talking to Datapath ownership is to talk to former owners of MSPs we’ve purchased previously and get their perspective.

How Do I Know if My MSP is a Fit? 

For starters, are you actually a MSP? Do you have recurring revenue, or do you primarily have break/fix relationships with your customers?

Do You Consider MSPs if They’re Struggling?

It depends on the situation. We have a practice of not taking on turn-around companies, which these companies are often struggling to make a profit and are often losing accounts or endanger of losing their accounts. We’re happy to have the conversation in these cases and will take these on a case-by-case basis. Worst case, we can also offer advice and suggest reaching out to us once there’s been some improvement.

How Much MRR Do You Require?

Ideally, Datapath doesn’t generally look at deals below $1M in annual recurring revenue. If you have a good growth trajectory, we will consider a lower amount.  Regardless, even if you’re not close it’s good to start the conversation now. 

Does My Company Name Change?

Yes, your MSP will eventually become rebranded as Datapath. We create a timeline for this and have experience in easing into this process to ensure it’s not too disruptive and doesn’t confuse your customers.

What Happens to My Team?

Your team becomes part of Datapath.  We ask you to be honest during due diligence on weak performers or those that you are having issues with.  We can evaluate those individuals on a case-by-case basis and we’ll lean on you as to whether you think they should come along in the transition.

Are We Forced to Do Everything the Way Datapath Does?

With every acquisition we see it as a two-way street. Just because we may be bigger, doesn’t’ mean you’re not doing it better than we are. We have a simple rule internally, “if it sucks let us know.” One of our core values reminds us to continue to innovate and think like a startup – so we’re hoping to learn from you as much as you are learning from us.

How Long Does the Process Take?

In general, from deal structure to close the transaction can take 90-120 days.  We have completed deals faster when necessary and they can be done in under 60, but it depends on how quickly you can provide information for due diligence.

What Does the Process Look Like?

Our process is pretty simple:

1. We start talking, think of this as the dating phase.  We have some phone calls and schedule an in-person meeting if we feel like there’s an opportunity.

2. We like to come and meet with you in your operation and also prefer that you come to the Datapath headquarters to meet with some of our leadership.

3. We hire a consultant to work with both of us during the process.  They help develop the value of your company which based on a fair market value.

4. Once the deal points are worked out, and purchase price and terms are confirmed a Letter of Intent (LOI) will be created.  Once the LOI is executed then we will be under contract.

5. While we’re under contract, we start the due diligence process which the consultant has dedicated team members that will help you and Datapath through this process.

6. During this time, we meet every week to discuss due diligence and what the future looks like once your team is transitioned to Datapath.

7. Simultaneously during due diligence, the contracts that solidify the transaction are worked on.  You will need to hire an acquisition attorney and your attorney will work with our attorney on any adjustments needed to the contracts.

8. As the team starts to identify that due diligence is on track and contracts are almost completed, we can set the formal close date.

9. Once contracts and diligence are complete, we sign the contracts on or prior to the close date. 

10. You receive the money due to you and become part of the Datapath team.