Navigating mergers and acquisitions (M&As) in the MSP Space

Mergers and acquisitions (M&A) have many faces. It allows MSPs to grow, downsize or transition out of the MSP game for new phases of life and business. It also changes the nature of the business to help MSPs achieve a competitive position in the market.

In this episode of MSPs in Conversation, you’ll get insights from your industry peers on the key reasons to consider M&As and how to get ready for M&As.

What we’ll be covering:

  • Advantages and disadvantages of M&A
  • Avoiding common pitfalls MSPs make in M&A
  • How to know if your MSP is ready for M&A
  • Growth & Strategy
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Key Takeaways

1

M&A Is a Growth Strategy — Not Just an Exit

For MSPs, mergers and acquisitions are a powerful way to accelerate growth, enter new markets, acquire specialist skills (like cybersecurity), or scale faster than organic growth alone allows.

2

Start Planning for M&A Earlier Than You Think

The most successful M&A outcomes come from long-term planning. Building systems, recurring revenue, leadership depth, and financial discipline from day one dramatically improves future valuation and deal success.

3

Valuation Is About Reality, Not Emotion

Many owners overestimate their business value. Australian MSP valuations are typically lower than US benchmarks, and true value is driven by adjusted EBITDA, recurring revenue, margins, and how well the business runs without the owner.

4

Recurring Revenue Drives Real Value

Managed services and high-margin recurring income are the biggest contributors to MSP valuations. One-off projects and product sales may boost cash flow, but they add little long-term value compared to predictable, recurring revenue.

5

Integration Is Harder Than the Deal

Signing the agreement is only the beginning. The real work is integrating people, processes, culture, and customers so that “one plus one” genuinely creates more value — not disruption or client churn.

6

Vendor Finance Is a Common (and Smart) Funding Model

Many MSP acquisitions are funded through vendor finance, where the seller is paid over time using the business’s future cash flow. This approach reduces risk, aligns incentives, and often enables deals that wouldn’t work through bank funding alone.

7

Culture and Alignment Can Make or Break a Deal

M&A success depends heavily on shared values, leadership alignment, and clear expectations. Without cultural fit and a common vision, even financially sound deals can fail.

Featured Panelists
Ben Town
Hosted Network
Ryan Spillane 360 Consulting
Ryan Spillane
360 Consulting
Nick Clift
Tenassia
Scott Atkinson
TribeTech

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