Kevin Cook, CEO, ECS + My IT

Written by Allison Francis
April 22, 2021

“The MSP market is highly fragmented with as many as 20,000 MSP’s across the country. Many of these owners are nearing retirement age and are looking for an exit. Well-run MSPs generate a ton of free cash flow and a large percentage of their revenue is contractually recurring. These factors have generated a great deal of interest from the private equity community. As demand for these companies increases, so does the price that larger MSPs and PE-backed organizations are willing to pay for them. There are a finite number of MSPs that have been able to grow in excess of $10 million in revenue and greater than $2 million in EBITDA, which again increases their value.

“It’s still very early in the consolidation cycle. Early reports are that a few large MSPs are on the market and a few deals have happened. Without being under the tent on those transactions, it’s difficult to know the full story, but word on the street is a few have been very good deals for the investors. As for my own MSP, we fully intend to have a successful exit. We believe one of the keys is to be disciplined in our acquisition strategy, and not get caught up in the feeding frenzy.”

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Allison Francis

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.