Still hanging on to your old T&M model? Here’s the harsh truth: If you’re not building your business around recurring revenue, you’re missing out. T&M might feel familiar, but it’s like running on a treadmill—lots of effort with no real progress.
The MSP Buyer’s Perspective
Institutional and strategic buyers aren’t looking for T&M shops; they want businesses with predictable, repeatable revenue streams. Why? Because those models offer stability and growth potential. A business that generates 65% or more of its revenue from managed services is far more appealing to potential buyers, whether they’re private equity firms or other MSPs looking to expand.
Wrap-Up: The Path Forward
It’s time to rethink your business model. If you want to be seen as a valuable MSP, build that recurring revenue, aim for at least 65%, and streamline your operations. Evolve with the times, or risk getting left behind. The choice is yours.