How to Get Acquired In A Bad Economy
When I speak with managed service providers and VARs, the conversations often involve so-called “exit strategies.” How can an MSP get acquired? What are the secrets to attracting a buyer? I asked Gary Pica, general managed of mindSHIFT Technologies, those very questions this morning.
Pica will be a guest speaker on our next MSPmentor Live: CEO Exchange. In 2005, Pica sold his company (Dynamic Digital Services Inc.) to mindSHIFT — one of the world’s best-known managed service providers. How did Pica attract a buyer? His answer was rather simple.
Back in 2005 mindSHIFT was seeking to get into the Philadephia-area market. So, Dynamic Digital Services was “lucky” to be in the right place (headquartered in Philadelphia) at the right time (focused on managed services).
But was this really luck? Actually, no. Pica’s team spent three years focused on building a recurring revenue managed services practice. That’s the key point: So many VARs think about their strategy to get sold. Instead, they should focus on building value and recurring revenue.
Dynamic Digital Services was “in the right place” (geography) at “the right time” because they were heads-down building their business. The lesson for MSPs: Build your recurring revenue practice and keep your financial house in order. Take those steps, and “luck” will with you.