New M&A Insights Podcast Drop: Why Your Finance Function Is Worth Two Turns of EBITDA

Most MSPs run their business from the bank account. And that’s exactly why they leave money on the table.

In the newest episode of M&A Insights, Brandi Bonds (CEO at Next Level Now) breaks down a hard truth: if your finance function is reactive, unclear, or “good enough,” you’re likely leaking margin today—and sacrificing valuation tomorrow.

If you’re an MSP owner who’s strong operationally but still flying a bit blind on finance, this episode is for you.

The Big Idea: Finance Isn’t “Back Office”—It’s a Valuation Engine

Brandi’s message is simple: finance must be one of the legs on the stool. Without it, you can’t be a high-performing MSP—because you can’t consistently steer margin, forecast cash, or prove performance to a buyer.

Takeaway: Treat finance as a growth driver, not an afterthought.

Mic-Drop Moments (and Why They Matter)

1) High-performing MSPs close fast—and forecast tight

“The best MSPs close their books monthly, practice accrual accounting and forecast within five percent. That’s what confidence looks like to a buyer.”

Why it matters: Monthly close, accrual reporting, and accurate forecasting signal discipline. Discipline creates options—better offers, smoother diligence, and less retrading.

Takeaway: If you track numbers with discipline today, you’ll have more leverage tomorrow.

2) A data room isn’t just for buyers—it’s for you

“A data room isn’t just for buyers — it’s for you. It’s how you prove you’re running a serious business.”

A clean, updated data room forces clarity and reveals gaps before a buyer does.

Takeaway: Data-driven clarity can add points to margin—and turns to your multiple.

3) Your ConnectWise problem might not be software

“Most MSPs have a ConnectWise problem… because they don’t use the data to run the business.”

Tools don’t fix financial visibility. Processes do. The best operators use systems to drive decisions—not just tickets and time entries.

Takeaway: Use your tech stack strategically to connect operations to financial outcomes.

4) Advanced revenue can create a dangerous illusion

“If you’ve collected $200K of advanced revenue but your bank account is at $100K you’re living off money you haven’t earned and buyers will catch that.”

This is where revenue recognition and accrual accounting become non-negotiable.

Takeaway: Clean add-backs, accrual books, and proper revenue recognition can add 1–2 turns to EBITDA multiple.

5) Utilization is quietly crushing margins right now

“Utilization is down from 85%-90% to 50%-60% and it is killing margins.”

Low utilization is one of the biggest hidden profit killers in MSPs—because it compounds across service delivery.

Takeaway: Know your staff utilization and build an action plan to correct it.

6) Add-backs don’t happen automatically

“Know your add backs and take them because buyers won’t do that for you!”

If you can’t tell your own profitability story, a buyer will tell it for you—and you probably won’t like the ending.

Takeaway: Don’t wait for buyers to define your add-backs.

7) CFO vs. Controller: know what you’re buying

“If someone says they are a CFO and they will get your books closed they are not a CFO. They are a controller.”

Closing the books is critical—but strategic finance is about forecasting, planning, KPI design, margin improvement, and decision support.

Takeaway: Hire the right level of strategic help for your stage.

8) The sale comes down to the numbers

“The sale of your business comes down to numbers… it’s about whether you can make money.”

It is about your clients and employees—emotionally and operationally—but valuation translates everything into profitability and proof.

Takeaway: Your story still has to translate into profits.

Listen Now

Listen now: https://www.buzzsprout.com/2314872/episodes/18090948 

If you have questions about tightening up your financials, building a buyer-ready data room, or boosting EBITDA before an exit, reach out to the team at Next Level Now — we’re happy to help you map the next best step: