1. Now Is A Good Time For M&A
There is a lot of money out there hunting opportunities, and investors have seen how the IT community as a whole held up during the COVID pandemic, Rose said.
“For those of you who’ve done well and continue to do well in that environment, you’re highly sought after no matter what your revenue is these days,” she said.
Combining multiple smaller MSPs into larger companies is an important way to multiple the value of MSP earnings, Phinney said.
“It’s a tremendous incentive for businesses to combine, to merge, and to be acquired,” he said. ”And you can see the effects of that in the market right now.”
Musumeche said buyers also like the recurring revenue and great customer satisfaction that the MSPs have.