“PEs desire a recurring revenue model, which MSPs provide. The MSP marketplace is fragmented and there are not many of any size which provide an opportunity to do M&A rollups.
“PE firms have a lot of capital on the sidelines and want to get it invested, and managed services has a 10%+ CAGR (according to a number of marketplace analysts). All of this provides the dynamics which creates a hot M&A market.”
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.