Trying to gain insight into the current state of MSP M&A activity? Look no further. Drive down to Miami on December 11th as Kaseya hosts the next in its series of MSP M&A symposiums at the Topgolf event venue in Miami Gardens.
Why should you care? Kaseya M&A Symposium brings together the brightest thought leaders within the community to share ideas, learn best practices, and make decisions for multiple subjects surrounding MSP M&A activities. Hear from owners of MSPs and investors about where your MSP could fit into the M&A picture. You will even witness an MSP in the Shark Tank! Hear their pitch and see if they survive the tank when pitted against a savvy investor.
Not convincing enough? What if we told you it’s a free event open to all MSPs and at the end of the day you get to play, drink and eat with your peers and industry experts. Will that help change your mind?
The MSP Landscape
The MSP market nearly doubled from 2011 to 2021 — growing from 85,000 MSPs to 167,000 MSPs. This explosive growth can be attributed to a number of factors, the primary ones being:
- SMBs and MMEs are doubling down on technology and digital transformation.
- It’s difficult to develop in-house tech and expertise, so outsourcing is the go-to option for businesses.
- A widening skill gap in the IT Workforce.
- Managed services are cost effective and help businesses extract maximum value from their IT investments.
- Outsourcing IT needs let organizations concentrate on the core business and growth.
In exciting times like these, M&A seem necessary to the growth story of an MSP, as it provides an opportunity for “like” companies to combine and grow together. As 2017 turned out to be a banner year for mergers and acquisitions, 2018 is only adding up to the momentum. In the first three quarters of 2017, M&A deals among tech-enabled services increased 74 percent in value and 27 percent in volume compared to the same period in 2016, according to the JEGI Q3 2017 M&A Overview. This is in contrast to a 60 percent decline in value and a 30 percent decline in volume among software vendors.
As Bob Dylan puts it best, “The Times they are a-Changin”.
Today, when organizations reach out to an MSP, they prefer one single vendor to address most of their IT needs. They demand a one-stop shop and not an individual problem solver. Achieving such benchmarks organically can be tough for a single vendor, but when they join forces with MSPs who their own niche areas of expertise, It’s a win-win situation. Also, considering that MSPs come in all shapes and sizes, they can have different motivations and different aspirations behind M&A. Some might consider it for gaining competitive advantage, while others may look at it for geographic expansion, or maybe boosting monthly recurring revenue. Different MSPs – different reasons, but it’s always a good idea to count your chickens before they hatch.
Whether you plan on selling your business now, or never; developing an exit strategy and using it as a routine operating guideline, while regularly revising it over time, is an excellent way to maximize your personal income today and solidify your value should you chose to sell “someday”, or when opportunity comes knocking.
Kaseya M&A Symposium: What to Expect?
Explore the strategic trends and technologies that are driving M&A for MSPs. Interact with industry experts and peers to uncover how mergers and acquisitions impact MSPs through their lifecycle and understand how MSPs can leverage M&A to profit their business.
Attendees will hear from Fred Voccola, CEO of Kaseya, Rob Stephenson, CEO and board member of Thrive Networks – one of the largest MSPs in the northeast, backed by M/C Partners, Todd Ofenloch, managing director at H.I.G. Capital – a leading global private equity investment firm with $30 billion of equity capital under management, Paul Cissel, vice president of business development for OnePath – who sold his company, Internet & Telephone, to Onepath, a private equity-based IT services provider, and Abhishek Rampuria, vice president at M/C Partners – a private equity firm focused on growth equity investments in emerging companies in the media, IT and communications industries.
The event will provide insight into:
- The state of MSP M&A movement
- Why an M&A strategy is critical for MSPs of all sizes and at all stages of development
- Best practices to create an M&A strategy and execute against it
- What private equity firms look for in MSP “platform” and “tuck-in” acquisition opportunities
All MSP executives — whether or not they are Kaseya customers ─ are welcome to this half-day event free of charge. The symposium will close with a cocktail mixer and Topgolf competition for those interested in participating. Seating is limited, so register today.