Todd Croteau has been CEO of All Covered for less than two months. But he has big plans for the managed services provider. Specifically, Croteau says All Covered can potentially acquire roughly 50 MSPs over the next three years. And two such deals appear to be in the works right now. Here's a closer look at Croteau's MSP acquisition strategy.
Croteau covers a range of points in the MSPmentor FastChat video below.
The video includes...
- 0:00 - Overview - Croteau's transition into All Covered's CEO position
- 0:30 - A closer look at All Covered's SMB managed services strategy so far
- 0:55 - Mixing cloud services, managed services and local support
- 1:00 - Croteau's top priorities as CEO: M&A, increasing client loyalty and making All Covered a great place to work
- 1:40 - All Covered's acquisitions so far, typical types of targets, and future M&A moves
- 2:20 - Can All Covered Make 50 deals in three years?
- 2:35 - Contact info and conclusion
Reality CheckSome skeptics think All Covered is more of a break-fix shop looking to roll up small resellers into a national reseller. But Croteau points out All Covered's emphasis on recurring revenue. He says roughly 90 percent of the company's business involves recurring engagements rather than one-off break-fix visits.
So, how much will All Covered spend on acquisitions? Croteau declines to discuss dollars, cents and MSP valuations. But I suspect the deals involve potential earn-outs to MSP owners. Again, just an educated guess but we'll be watching to see how the All Covered M&A strategy plays out over the next few months -- and years. Plus, we'll be checking in with MSP owners who sold their businesses to All Covered, to see how those deals panned out over the long haul.
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