Anyone have experience rolling up SLED MSPs?
Hi everyone - I'm Henrik, based in Orimattila, Finland. I'm now executing my first US acquisition, and I'm joining this community to find the right anchor partner — and to learn from everyone who's done this before me.
The setup. My US vehicle is in place: Artsee Marketing LLC (Florida LLC, established 2022, EIN, US banking). Not a promise-to-form — four years of operating history. The acquisition will run through a new acquisition subsidiary.
The deal (under NDA, so deliberately blinded). I'm in a brokered process (LOI stage approaching) for an established IT services / MSP company in the US South.
Profile:
~$4.4M revenue, record 2025 EBITDA of ~$860K (3-year average ~$590K - I underwrite to the average, not the peak)
SLED-dominated customer base (state/local/education), strong vendor relationships, cooperative purchasing contracts, ~65% blended recurring revenue
Debt-free balance sheet; seller succession-driven, wants liquidity plus a consultative role; open to seller financing
Structured offer: ~$2M cash at close, $1M subordinated seller note (interest-only, standby), DSCR-gated earnout capped at $1.25M, 10% seller rollover - seller-aligned and covenant-protective
Financing: ~$1M senior debt (approaching banks now) + $400–700K anchor equity; hard 1.5x DSCR discipline on actual cash flow, not EBITDA
The plan. Year 1–2: stabilize, professionalize management, convert break-fix to contracted managed services, land the security/SOC attach. Year 3+: 1–2 tuck-in acquisitions per year in adjacent markets (succession-stage MSPs at 4–5x) toward a $10M+ EBITDA regional platform.
What I'm looking for in an anchor:
$400-700K for 25-33% of the acquisition entity; NewCo LLC, pro-rata distributions, optional accruing preferred
Board seat and vetoes on new debt, add-ons, and exit - I want governance, not a silent check
Ideally someone who knows MSP economics or SLED/public-sector contracting; a retired MSP founder would be ideal
5–10 year horizon, 25–35% IRR target via entry at ~5x and exit at 8–10x
What I bring: operating discipline from building a tech services business across borders, a full financial model with DSCR-gated decision points (no spreadsheet optimism - my model is deliberately conservative), US legal/tax/compliance already underway, and a financing-first sequencing (banks before equity, so you'd be joining a deal with a term sheet in hand).
What I don't pretend to bring: deep US market fluency and local networks - which is exactly why I want a US-based anchor as a partner, not just capital.
If this profile fits, or you know someone it might fit, I'd love a conversation. Equally happy to hear from anyone who's financed a first MSP acquisition,what would you have done differently?