The MSP Law Podcast

Relaxing requirements but an 11 page application for loan foregivenes..

Did you think the slow down would be for a while?  Look for activity to start again mid-year and go roaring into 2021.  Here are my thoughts about MSP sales, mergers and acquisitions.

Learn about the loan forgiveness provisions of the CARES Act and Payroll Protection Program.

The Paycheck Protection Program has a safe harbor for returning funds if you cannot satisfy the requirements of certification. Learn the background and what those requirements are.

Managed Service Providers need to look at the contract to see if a force majeure clause exists. They need to determine what constitutes a force majeure event, the scope of the excuse for performance, notification obligations and whether or not the other party has an obligation to mitigate. Without a force majeure clause, Managed Service Providers need to build a defense if their performance is impossible, impracticable or frustrates the purpose for the underlying agreement.

Limitation of liability clauses seem to be the magic bullet on first blush, especially if you are concerned with cyber security liability as a Managed Service Provider.  MSPs should be aware that this language is more art than science.

Dig deep into the terms and conditions of Master Service Agreements for Managed Service Providers.

Not all Master Service Agreement templates are created equal nor should you just buy an 'off the shelf' template for your Managed Service Provider.  You should approach this important agreement understanding the purpose behind the agreement and fostering the relationship you are trying to create with your customer.

Many MSPs have a key employee, i.e. lead technology engineer, that is willing to work for the owner but is not so willing to work for the owner's spouse.  A one-sided buy - sell agreement allows for the owner to give the key employee rights to purchase the business should the owner pass away, become disabled or other triggering events.  The agreement can be structured so as to allow the owner to freely sell to others and have the agreement only effective when a triggering event occurs.  What a great gift the owner has provided to his surviving family members - predictability in the sale of the MSP, to the employee and to the business.

MSPs normally work on offense.  It is always "GROW THE TOP LINE REVENUE NUMBERS."   Little time is spent on building the defense.  Offense is not the only determining factor for success.  Defense will win championships.  Would you ever consider building a home where 3 exterior walls were 10 feet high and the 4th wall was only 2 feet high?  Listen in if you are an MSP owner and request the self-evaluation.