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When looking at growth from a long-term perspective, both mergers and acquisitions are big ways that business owners look to manage their path forward. Whether it’s bringing in a new business to augment or improve the existing service, or selling the business to be a part of a bigger group, MSP owners are examining their options.
Owners are also planning for their exit from the industry as well, whether its retirement or moving into a new opportunity. James Ratcliff of Ratcliff IT, said that long term business planning in regards to M&A is important for owners who need to understand how their own career impacts the operations of their business.
of MSPs are open to selling
total looking to sell in 2024
plan to sell in 2025 at the earliest
have no plans, but are open to the prospect of a sale
never plan to sell
remaining are unsure
People just aren't, and what that says to me is they haven't really thought about selling. They're actually trying to think about the next three, six, 12 months. You know what? I'd go a step further and go, they're probably not planning anything. They're just doing week to week, month to month. They're trying to make money each month, probably
....There's a lot of M&A activity as well because it's seen as a good investment. There's more interest than there used to be. The reason to buy rather than sell, as an MSP is that organic growth can be quite tricky. But you could potentially bolt on a couple of years worth of growth.
James Ratcliff
Managing Director, Ratcliff IT
They don't have an exit strategy. They don't know what the future holds. While we don't have a set in stone exit strategy, it is definitely a conversation that we have.
And we know what that looks like in the end. As to when and how that is going to get there, it's not set in stone. But I think there's a lot that aren't even thinking about that because they're really busy in the day to day. Looking that far in the future is– it's daunting.
Carrie Green
SVP of Operations, Alt-Tech Inc.
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