Welcome to the ninth episode of It’s a Numbers Game Podcast by The MSP Finance Team with Daniel Welling & Adam Morris.
We created It’s a Numbers Game Podcast to help MSP owners learn and understand how to build and maintain a financially healthy MSP business. In this podcast series, MSP business owners like you will learn the fundamental steps, the tips and tricks, the dos and don’ts to achieve MSP financial growth.
In this episode, we talk with John Snead, Chief Executive Officer of Danescor, an off-market exchange facilitating M&A (Mergers & Acquisitions) transactions and fund raisers in the mid-market.
We talked about the past, present, and future of MSP mergers and acquisitions.
John highlighted how the MSP space has grown predominantly over the last 20 years due to the evolvement of recurring revenue, offering certainty of income for the buyer.
We looked a great case study for the market; Content+Cloud, whose acquisitions included IT Labs, Content & Code, starting with an in-territory buy and build model, then adding cross-sell, with SharePoint services and finally cross-territory with their acquisition by Advania.
We also explored cross-sell business opportunities, such as telecoms including the advent of Teams, websites and finally accounting, referencing the historic separation of Accenture from Arthur Andersen.
A top tip from John was to build the business for the best buyer, not all buyers, as they will pay the most money as it will be worth more to them.
And finally, you can only sell it once, unless you buy it back, before you sell it again!
Learn more about Danescor here – https://danescor.com/
Connect with Daniel Welling on LinkedIn by clicking here – https://www.linkedin.com/in/daniel-welling-54659715/
Connect with Adam Morris on LinkedIn by clicking here – https://www.linkedin.com/in/adamcmorris/
Visit The MSP Finance Team website, simply click here – https://www.mspfinanceteam.com/
We look forward to catching up with you on the next one. Stay tuned!