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Due diligenceExpert answer · 1 min read

What should I check about an MSP’s backup and recovery service for its clients?

Ask for proof that restores work, not proof that backups run. Request recent restore tests for several clients, find out where the copies are stored and who controls them, and read what the client contracts promise. A backup service that has never been tested is a liability you would inherit.

Begin with the tests. Ask for the log of the last restores, which clients they covered and how long each took. A backup that completes every night but has never been restored tells you little. If the seller cannot show a test, ask whether you can watch one.

Then follow the data. Where do copies live, who holds the accounts, and are they in the firm’s name or a technician’s? Ask whether any client data sits with a third party and whether that arrangement is written down. Ask how a lost password for the backup system would be handled. Ask also who gets alerted when a backup fails, and whether anyone acts on those alerts the same day. A monitoring routine that depends on one person checking email is easy to miss.

Read the contracts next. Look at what the firm has promised about recovery and how fast. Promises that are loose or oversized create exposure that passes to the new owner. Your lawyer can tell you how the agreements treat data loss and who answers for it. Last, ask about incidents. Has a client ever lost data, and what happened? A seller who explains a failure clearly and shows what changed afterwards is giving you useful information about how the firm behaves under pressure.

Key takeaways

  • Ask for restore tests, not backup success reports, and watch one if possible.
  • Confirm who holds the backup accounts and where client copies are stored.
  • Have your lawyer read what the contracts promise about recovery and data loss.

Sources

This answer is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Business Development Bank of CanadaGovernment
    How to conduct due diligence when buying a business
    bdc.ca·Checked Oct 21, 2026
  2. 02
    Business Development Bank of CanadaGovernment
    What are the steps to buying a business?
    bdc.ca·Checked Oct 21, 2026

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