Blog by Ben Greenberg, VP of Corporate Development at IT Solutions
If you’re considering M&A initiatives or navigating the challenges of growing your MSP, we invite you to connect with Ben (Ben.Greenberg@itsolutions-inc.com).
If you’ve been through an M&A process, you know the standard diligence workstreams like financials, operations, legal, customer dynamics, and cultural fit. These have been the backbone of deal evaluation for years.
Over the last 6 months, AI has stopped just becoming a discussion topic and has quickly become a primary diligence workstream. This matters for sellers. Understanding what buyers are probing for, and why, can meaningfully impact deal valuation and overall business strategy.
Why AI Is Now a Primary Diligence Focus
Investors see AI as a defining factor for MSPs over the next several years. MSPs that have properly invested in and adopted AI, both internally and from a go-to-market perspective, are best positioned to thrive in the long term.
That same logic works in reverse. An MSP that hasn’t thoughtfully invested in AI signals a business that may struggle to keep pace as client expectations evolve and the businesses around them mature.
Put simply, investors increasingly view AI as an opportunity for MSPs, but a risk if not approached early with a sound strategy and real investment.
Questions Sellers Should Be Prepared to Answer
When buyers evaluate your AI strategy, they’re looking for signs of real commitment and, ideally, demonstrated results. Here are the areas where they’ll dig deepest:
1. How do you envision your organizational structure 12 months from now — and who is leading your AI initiatives?
Buyers want to see accountability. Is there someone with authority driving the AI roadmap? The absence of a clear owner signals that either AI isn’t a priority or there’s no plan. You don’t need a Chief AI Officer, but you do need someone who owns the strategy. An executive sponsor is a great place to start.
2. What is your AI and automation budget?
Whether in tooling, development, training, or headcount, investors will want to see that you’ve thought through the investment required to deploy AI in your organization. If it’s not budgeted, the roadmap is harder to take seriously. Be ready to speak to what you’ve committed to and what you’re planning.
3. What are the demonstrated results to date?
Buyers will look for specifics: some examples include time saved on tickets, faster onboarding, improved GM, or revenue from AI offerings. As you implement both AI and automation tools, document the return on investment (ROI). If you’re early in the journey, that’s ok, most are. Credible roadmaps beat exaggerated claims.
4. How are you developing a go-to-market approach around AI?
As SMB clients turn to their MSPs for AI guidance, buyers want to know if you are positioned to capture that demand. Who’s having AI conversations with clients? What’s the offering(s)? Is there a repeatable and scalable process? If an MSP is not prepared to fulfill its client’s AI demands, the client will surely look elsewhere, which is where the risk lies. In many MSPs, this will be a new, dedicated role, as the traditional vCIO or vCISO is not equipped for it.
5. What are your tools and development strategy around AI?
Are you leveraging platforms with embedded AI? Building custom workflows? Internal resources or contractors? Buyers aren’t expecting everyone to be at the same stage, but they are expecting a strategy and pathway to positive ROI.
The Bottom Line
AI diligence isn’t a passing trend; it’s becoming a major factor in how buyers value MSPs. The businesses that can demonstrate a clear, credible, and results-oriented approach to AI will command attention and higher value in a crowded market.
You don’t need to have it all figured out. But at this stage, you do need a plan, at a minimum.
If you’re considering an exit and want to understand how your AI strategy, or the absence of one, might impact your valuation, I’m happy to have that conversation.
