FOCUS Investment Banking
M&A Update July 2022
Every six months or so, Abe Garver pays us a visit to give us the latest in the world of MSP mergers and acquisitions
About This Episode
Back for the third time on our podcast, Abe Garver of FOCUS Investment Banking joins us for an update on M&A in the MSP industry.
1:45 – Abe gives a little bit of background on the deals FOCUS has been involved in over the past two and a half years, sharing the average EBITDA of the involved companies and the qualities that appeal to private equity investors.
4:53 – Brian and Robb ask Abe to expound on the characteristics often found in individuals and companies who become platform leaders and those who are acquired. Abe emphasizes the importance of being as transparent as possible with your expectations and what you want from an M&A deal when you come to him and his team. He also spends considerable time sharing the many ways that being part of a peer group is incredibly advantageous when it comes time for a deal.
13:43 – Robb asks Abe how they handle someone who comes into a deal well after it’s established, rather than being part of the initial group. Abe gives examples of both: how a group of four owners came together and found their perfect roles within the new platform, and how an owner can find an influential and satisfying role in an established platform, even if the one they’re accustomed to is already filled.
18:07 – Tim asks Abe about inflation and the effects that the looming recession have had on M&A deals. Abe shares the conversations he’s had and the knowledge he’s gained that have completely calmed his fears about any impact due to inflation.
25:37 – Robb asks Abe what owners who are looking to get acquired should be doing in order to get themselves and their businesses ready. Abe shares the metric for higher valuation that is often overlooked and not prioritized by MSPs. Tim, Brian, and Robb get a moment to talk about the new sales maturity platform they’re developing.
ChannelE2E article referenced by Abe: https://www.channele2e.com/influencers/5-msp-valuation-drivers/
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