Ask George Sierchio what actually kills an MSP sale, and the answer isn’t what most owners expect. It’s rarely the price. More often, it’s something quieter — a chunk of revenue that only exists because of one relationship, a role nobody’s thought to replace, or an owner who hasn’t quite figured out which parts of the business they’re ready to let go of.
This episode walks through the real deal-killers George sees again and again: revenue that hinges on the owner personally, roles that don’t survive a sale, related-party pricing that surfaces the moment diligence starts digging, and the operational maturity that decides whether a company can run without the person who built it.
Short version: most of what kills a deal was visible months before the deal ever started. The owners who look early are the ones who don’t get surprised later.
Watch the episode and be sure to subscribe: Watch Cogent Conversations Episode 17
Key takeaways from this episode
- The deal most at risk is the one that hinges on you personally. In smaller MSPs, a real chunk of revenue can ride on one owner’s relationships. That’s rarely a dealbreaker by itself — but the buyer needs real confidence those relationships will transfer, which usually means you sticking around long enough to make the introductions stick.
- Being honest about what you actually want to keep doing matters as much as the number. The sellers who fare best are clear — with themselves and with the buyer — about which parts of running the company they’re happy to hand off, and which parts, the customers, the technical work, they want to hold onto.
- Not every role survives the sale, and that’s normal. Buyers typically need less duplicate G&A — HR, bookkeeping, back-office — while the people actually bringing in and servicing revenue stay exactly where they are. Sellers who expect this going in negotiate from a much steadier place.
- Related-party pricing gets found — plan for the conversation instead of the surprise. Discounted work for friends, family, or a quiet back-scratching arrangement with a vendor all surface in diligence. Buyers aren’t trying to catch anyone; they’re trying to understand what the economics look like once the personal ties come out.
- Run the 90-day test before a buyer does. If the owner disappeared for three months, what would actually break — in sales, with clients, in day-to-day operations? Owners who’ve already answered that honestly walk into a sale from real strength, and the answer usually points straight at what to fix first.
- A company that runs without you is worth more than one that runs because of you. Real delegation and real leadership below the owner — what George calls operational maturity — often widens the field of interested buyers more than the top-line number alone.
Here’s the test worth running before a buyer ever does: if you disappeared for 90 days, what would actually break — in sales, with clients, in how the place runs day to day? Most owners have a rough guess. Few have actually tested it.
If you want a clearer read on what’s riding on you personally, and what that means for how your company will sell, that’s exactly the kind of conversation worth having early. We’re happy to help you think it through anytime.
