By: Jess Taveras
ConnectWise recently hosted a webinar on the intricacies of mergers and acquisitions (M&A) within the managed service provider (MSP) industry, featuring ConnectWise Invent™ certified integrator, Avalara, and Arlin Sorensen, Vice President of Ecosystem Evangelism, at ConnectWise. If you’d like to watch the on-demand recording, you can check it out here.
Here are some of the key takeaways:
The MSP seller and buyer process: M&A can be a daunting process, especially in the MSP industry. It's not just about the transaction; it's about ensuring a smooth transition that benefits both parties involved. During our webinar, we discussed the various aspects of the M&A process, from preparation to execution.
Expert insights: Christine Martin from Avalara and Arlin Sorensen from ConnectWise certainly brought their wealth of experience to the table. Christine's background in tax management provided a unique perspective on the importance of tax compliance during M&A, while Arlin's experience in running an MSP and facilitating peer groups through IT Nation Evolve™ offered practical advice on navigating the transition.
Preparing for transition: One of the key takeaways from the discussion was the importance of preparation. Whether you're looking to sell, buy, or merge, the groundwork you lay before the transition can make all the difference. This includes understanding your company's mode of operation, aligning your team's goals, and ensuring your financial and operational readiness.
Tax compliance—A critical component: Often overlooked, tax compliance is a critical component of any business transition. It's essential to conduct due diligence and understand the implications of sales tax during the M&A process. Avalara's expertise in this area can help companies navigate these waters and avoid potential pitfalls.
The future of MSPs: As we look to the future, the MSP landscape continues to evolve. Business transitions are becoming more common, and companies must be prepared to adapt. Whether it's through acquisitions, management buyouts, or family transitions, understanding the options available and strategies for success are crucial.
M&A in the MSP industry is complex, but with the right preparation and guidance, it can lead to a prosperous future for all involved.
About ConnectWise Invent
ConnectWise Invent is an official vendor integration partnership program. Third-party vendors are invited to collaborate on the development of robust and secure integration experiences with our ConnectWise platform for the benefit of our mutual MSP partners.
