How Private Equity is Targeting MSPs – Will You Be a Buyer or a Seller? Pri

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March 05, 2025

by a professional from Embry-Riddle Aeronautical University in Orlando, FL, USA

Private equity firms are aggressively acquiring MSPs, but not all businesses are treated equally.

..Some MSPs get acquired at premium multiples. . Others are sold in a fire sale, barely breaking even.

. Real-World Example: An MSP in Austin, TX was generating consistent revenue, but they lacked a structured growth plan. Private equity firms only offered low-ball multiples, seeing them as a distressed asset rather than a high-value acquisition.

. After leveraging the MSP Business Evaluator and Accelerator, they: ...Identified growth bottlenecks and implemented strategic changes ....Improved financial and operational efficiencies, making them a more attractive target ... Negotiated from a position of strength, commanding a higher valuation

. MSPs that prepare and scale strategically will be the ones dictating their future.

. Read the full article: https://www.linkedin.com/pulse/disruption-creates-opportunity-your-msp-pivot-put-up-sale-paul-daigle-rpfec

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