MSP Mergers and Acquisitions: Need An Advisor?
A managed service provider in Southern Texas apparently has retained Sarlex Partners to help sell the company. Sarlex positions itself as a strategic consulting firm specializing in mergers and acquisitions. I wonder: Will more and more MSPs turn to advisors and deal brokers to accelerate their M&A activity?
Sarlex Partners LLC certainly isn’t alone in the MSP Merger and Acquisition advisor space. Two other examples:
- M&A Forum Chairman Martin Wolf has been involved in roughly 80 IT and solution provider M&A transactions over the past 11 years.
- The MSPAlliance will offer M&A-related content at the MSPWorld Conference (Nov. 12-13, Las Vegas). And MSPAlliance President Charles Weaver has set up Weaver & Associates to advise MSPs on a range of issues including mergers and acquisitions.
Readers Weigh In
Back on Sept. 3, I suggested that the MSP merger and acquisition industry was a bit slow this year because there were too many sellers and too few buyers. But readers have since posted a range of comments — a few of which disagreed with some of my views.
Shortly after the post, Sarlex Managing Partner Michael W. Hines reached out to me, disclosing that he was representing a Southern Texas MSP that was seeking a buyer. His note included the following line:
“…if there is anyone looking at expansion, in South Texas, there is an opportunity. They can email me for further information. mhines [at] sarlexpartners.com.”
Please note: I’ve never heard of Sarlex before my email exchange with Hines. So I’m not endorsing their services nor can I personally confirm the identity of the MSP they’re representing. As with any potential M&A — buyer and seller beware (i.e., do your homework).
Still, it’s good to see some M&A chatter getting a little louder. I still believe the market is a bit soft. But perhaps readers will prove me wrong.