“Mergers and acquisitions usually fail because of people.”
In this Technology Reseller News podcast recorded at ChannelCon 2026, Craig Fulton of Evergreen discusses what buyers are looking for in an MSP and how providers can build a more valuable, transferable business.
Evergreen is a decentralized holding company that acquires IT services businesses while allowing them to retain their brands, employees, customers and operating systems. Fulton compares the model to Berkshire Hathaway for IT services.
Although AI is helping MSPs improve service delivery and efficiency, Fulton says it does not yet command a valuation premium on its own.
“We’re not paying for AI in a business,” Fulton says. “We’re impressed with the impact it has had on the business.”
AI can increase value when it improves recurring revenue, scalability, customer retention and EBITDA. The outcome matters more than simply claiming to use the technology.
Evergreen also evaluates revenue, profitability, customer concentration, retention and management structure. An MSP may be harder to sell when one customer represents more than 20 percent of revenue or when the owner remains responsible for sales and several other essential functions.
Fulton recommends that owners planning to sell within the next three to five years begin building a management team and hiring a dedicated salesperson well before the transaction.
He also warns buyers and sellers not to overlook employees during an acquisition.
“You can have tools and processes all day long, but people want to work with people,” Fulton says. “People are what make a company.”
MSP owners should begin considering their exit strategy early and learn about potential acquirers before deciding to sell. Different buyers may be focused on financial performance, geography, talent, vertical expertise or customer relationships.
“You’re only going to sell a business once,” Fulton says. “Get to know who is out there so you don’t have regrets.”
Watch the Full Video below: