Can I sell my MSP’s client contracts without selling the whole company?

Some managed service providers want to sell only part of what they run: a group of clients, a service line, or accounts that no longer fit. A buyer may be glad to take those clients without your company, its history or its debts. It can work, but it is harder than it sounds, because a managed-services client is not just a contract. It is a live environment that someone must keep running the day after the handover.

Whether the contracts can move

Read each client agreement for what it says about assignment. Some may be passed to a new provider only with the client’s written consent, and others may need a fresh agreement with the buyer. Check the wording of each agreement with your lawyer. Clients will need to be told; agree with the buyer who makes that first contact. Your lawyer can tell you which route each contract needs, and how to keep the rest of your company clear of the sold work.

Moving each client’s environment

The buyer will not want to run your monitoring, backup and ticketing tools for long. That means moving each client to the buyer’s stack, one at a time, with a schedule the client has agreed to. List what each client has: devices, accounts, backups, licences and documentation. The credentials handover needs particular care.

People, tools and what you keep

• Which technicians know these clients, and whether they move with the work or stay with you.
• Which tools and licences are shared with clients you are keeping.
• Any support you will give during the transition, and for how long.
• Whether you agree not to approach the sold clients afterwards.

Clients tend to follow the people they trust, so how you present the change matters as much as the paperwork. The general idea of a part sale is covered in selling part of your business. Your accountant can explain how the sale of a client book is treated for tax.