Peter Melby, CEO, Greystone Technology

“I think the uptick in M&A and PE activity has to do with the fact that business acquisitions in general have increased, and MSPs seem to make great targets for great financial returns. Technology companies are sexy, recurring revenue is very valuable, and the needs for our services continue to grow. We are great targets on paper, especially considering the pressure of PE groups to put their dry powder to work.

“The success all comes in the PE group’s understanding of how MSPs operate most successfully. We are a relationship-based industry in many ways. Consolidation and integration can easily disrupt client and employee relationships, leading to both cultural and financial challenges. Organic growth is stunted in many PE rollups, which adds to the financial pressure. It’s not a recipe for success. A PE group that understands that the money follows the people, relationships and reputation can find an island of success among a sea of struggles.”