?? Maximize Your M&A Activities with an Intermediary of Deals

Maximize Your M&A Activities with an Intermediary of Deals

For those organizations purchasing Managed Service Providers (MSPs), Managed Security Service Providers (MSSPs), Value Added Resellers (VARs), and Unified Communications as a Service (UCaaS) organizations, sometimes referred to as Voice Over IP (VoIP) organizations, don't shy away from deals because of the extra baggage these organizations might carry. Instead, consider partnering with a firm that can assist in divesting the business segments you do not want to acquire. This approach can substantially decrease the cost of your desired business acquisitions.

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Many of these organizations have multiple business segments. Take an MSP, for instance. No two are alike; they may offer MSP services, but also UCaaS services, carrier services through a Telecom Service Brokerage (TSB), software development, low voltage structured wiring, project services, equipment build services, and web services, to name a few. To make things more unique, they often classify themselves as MSPs, typically generating 70-75% of their monthly revenue from MSP services. However, this might not always be the case. For example, we've encountered ServiceNow platinum partners that classify themselves as MSPs but actually generate over 55% of their revenue from their ServiceNow business segment.

Sourcing deals requires significant effort, both in terms of people and money. While it's important to pursue your ideal acquisition targets, in business, just like in life, you will encounter many opportunities before finding the perfect fit. It's crucial to take advantage of every opportunity you come across, even if it’s not perfect. As I often say when hunting, go after the elephant, but don’t ignore the elk. Often, it's the elk that feeds and sustains the business.?

Team up with a business that has extensive experience in M&A activities across different business segments to maximize your efforts. These businesses are known as "Intermediaries of Deals."

It's not uncommon for an MSP, at the closing table, to have five other organizations interested in purchasing sub-business segments simultaneously. Often, the organization that initially found the opportunity will contact an Intermediary of Deals to divest these other business segments, generating a great deal for the selling MSP and a good deal for the organizations acquiring their respective segments.?

Maximize your M&A activities by utilizing an Intermediary of Deals. A good Intermediary of Deals not only has access to off-market deals but can also provide leverage to organizations performing M&A from the buy or sell side. They offer negotiating leverage, determining who wins on deal-breaking points, and knowledge leverage, based on knowing what issues you can win on without jeopardizing the deal.

To find out more – I am hosting a webinar 7-18-24 at 11:00 eastern, chick here to register: https://www.dhirubhai.net/events/transformyourmspbusinesswithliv7214977445387481088/

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