Content, Private equity

Friday’s Exit Strategy: MSP Business KPIs and Private Equity

Share

Video Above: If you're trying to sell your managed services provider (MSP) business to a private equity firm or strategic buyer, you'll need to share multiple KPIs (key performance indicators) with potential suitors. Which business KPIs are of greatest interest to a potential MSP buyer? Evergreen Services Group Head of M&A Ramsey Sahyoun shares answers in the video above.

About Evergreen Services Group

Evergreen, backed by a private equity investment firm, has acquired 13 MSPs between January and November 2018, and more deals are coming.

  • Six of the acquisitions involved "platform" MSPs -- service providers that are large enough to potentially dominate a specific geographic region, vertical market or particular technology sector.
  • Seven of the acquisitions are tuck-in deals -- essentially, MSPs that will tuck into the platform MSPs.

Background: Why Private Equity Firms Are Acquiring MSPs

The video above is Part Two of our Three Part interview with Sahyoun. Part One, which provides background on Evergreen and the MSP M&A market, is below:

We'll publish Part Three of our interview -- describing how MSPs operate after a company sale -- on Friday, November 30.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.