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April 22, 2021
In case it somehow escaped your attention, there is an M&A frenzy afoot. Packs of private equity firms are gobbling up service providers.
Some speculate that this is thanks to the increase in demand for IT services due to the pandemic. Others say that the uptick has to do with the fact that business acquisitions in general have increased. Further, it appears that MSPs make great targets for great financial return.
The industry, it seems, has been fast forwarded about a decade. This is likely due to the increase of work from home, security, cloud services and different remote access technologies. According to Jorge Rojas, partner at Tektonic, the pandemic-induced uptick in IT services demand is a huge driver. This is definitely true, but we wanted to know what else is driving these buy-ups and consolidations, and why private equity firms are chomping at the bit.
We asked our partners to give us a little more insight as to why this is happening with seemingly more frequency and urgency. And, further, if these ventures will be successful. The overwhelming sentiment is, unsurprisingly and perhaps annoyingly, only time will tell.
Click through the slideshow above to see what our partners expressed regarding this development.
Allison Francis is a writer, public relations and marketing communications professional with experience working with clients in industries such as business technology, telecommunications, health care, education, the trade show and meetings industry, travel/tourism, hospitality, consumer packaged goods and food/beverage. She specializes in working with B2B technology companies involved in hyperconverged infrastructure, managed IT services, business process outsourcing, cloud management and customer experience technologies. Allison holds a bachelor’s degree in public relations and marketing from Drake University. An Iowa native, she resides in Denver, Colorado.
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