Channel programs News
Converge Technology CEO On Channel Consolidation, M&A And Private Equity
Converge Technology Solutions CEO Shaun Maine explains why vendors want channel consolidation, how private equity firms don’t understand solution provider M&A like Converge does, and his company’s plan to grow $1 billion in sales per year.
Private equity is pouring money into the channel but isn’t able to grow solution providers like you can. How does Converge do M&A better than the private equity firms?
So they don’t really get the leverage from the vendors. Really what the vendors are looking for and why they want us to consolidate the channel, is because, [let’s say] we have a telemedicine solution in a children’s hospital in Atlanta with Cisco. Every single NFL city has a children’s hospital and they’d like to partner with someone that can roll those out nationally. But in order to do that, you have to have a structure that allows you to have regional engineering teams, regional sales team and cross-selling offerings.
At my former company Pivot, we got it wrong. We didn’t learn how to integrate, especially cross-sell the offerings. This is what our President Greg Berard has been so brilliant at is around these practice areas and the pre-sales architects in the regions.
When we buy companies, the salespeople report regionally. Like Dasher had salespeople in the southeast. Well, they now reported to that local structure. So getting that right is important because the vendors want to engage you on local campaigns. So if you don’t fit into that, then well, do they care when you’re talking to them? So it’s about understanding the vendors.