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Friday’s Exit Strategy: MSP Business KPIs and Private Equity

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Which MSP key performance indicators (KPIs) do private equity firms value? Evergreen Services Group Head of M&A Ramsey Sahyoun points to these business KPIs for managed services providers.

Video Above: If you’re trying to sell your managed services provider (MSP) business to a private equity firm or strategic buyer, you’ll need to share multiple KPIs (key performance indicators) with potential suitors. Which business KPIs are of greatest interest to a potential MSP buyer? Evergreen Services Group Head of M&A Ramsey Sahyoun shares answers in the video above.

About Evergreen Services Group

Evergreen, backed by a private equity investment firm, has acquired 13 MSPs between January and November 2018, and more deals are coming.

  • Six of the acquisitions involved “platform” MSPs — service providers that are large enough to potentially dominate a specific geographic region, vertical market or particular technology sector.
  • Seven of the acquisitions are tuck-in deals — essentially, MSPs that will tuck into the platform MSPs.

Background: Why Private Equity Firms Are Acquiring MSPs

The video above is Part Two of our Three Part interview with Sahyoun. Part One, which provides background on Evergreen and the MSP M&A market, is below:

We’ll publish Part Three of our interview — describing how MSPs operate after a company sale — on Friday, November 30.