M&A Insights

[email protected] | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedIn 

Ever wondered how offshoring can transform your MSP's operations and boost your margins? In our latest episode, I sit down with Thaddeus Susara from TechnoGlobal to uncover the secrets behind successful offshoring strategies that can save you money, streamline your operations, and even prepare your business for a lucrative exit. Whether you're looking to scale or considering M&A opportunities, this is the conversation you don't want to miss! 

www.linkedin.com/in/madhur-duggar

[email protected] | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedIn

Get ready to meet Emil, the dynamic force behind ETECH 7 and AI Autopilot! Hailing from the bustling streets of Manhattan and with roots in Uzbekistan, Emil's journey from an economics student at Baruch College to a tech innovator is nothing short of inspiring. Join us as we dive into how he's revolutionizing ticketing automation for MSPs with cutting-edge AI technology and what is vision is for how AI’s role amongst MSPs is only going to grow. Folks you won't want to miss this, ABRA Ca DABRA - let the magic happen.

My name is Madhur Duggar and I work in the M&A space for the Software and IT Service companies and this is my podcast series M&A Insights. If you are interested in having a conversation around the strategic direction of your firm, are looking to grow your book and want some marketing and business development help or are an investor looking to make an acquisition in this space, write to me at [email protected] or reach out to me on
Linkedin at www.linkedin.com/in/madhur-duggar.
 

www.linkedin.com/in/madhur-duggar

[email protected] | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedIn

Selling a business will require preparation, effort and yes, time! Time that you need to be spending on running your business. You’ll need to work with an advisor who can guide you through the process and network with your peers to make sure you don’t lose focus. The good news is nearly everything you do in preparation for your sale will also make your business leaner, meaner and more profitable. Welcome to M&A Insights with Madhur Duggar. Today, we're talking about the steps you need to take before you are ready to sell your business. To talk about this important topic, I am thrilled to welcome Chris Vollmond Carstens, NTIVA’s Chief M&A Officer to my show. Chris and NTIVA have been incredibly active in the MSP M&A landscape. Since 2015, they've successfully completed 15 transactions, with their most recent being the acquisition of The Purple Guys.

www.linkedin.com/in/madhur-duggar

[email protected] | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedIn

In this podcast Chris Vollmond-Carstens, NTIVA's Chief M&A officer, discusses with us Reverse Due Diligence, i.e. questions that sellers should be asking buyers.

Chris and Ntiva have been incredibly active in the MSP M&A landscape. Since 2015, Ntiva has successfully completed 15 transactions, with their most recent one being the acquisition of the Purple Guys.

Key questions cover the following topics

Cultural Fit and Values

• Questions to ask:
  • What is the cultural fit between our organizations?
  • How do you plan to integrate our employees?
  • What opportunities for growth and development will be available for our team?

Business Vision and Strategy

• Questions to ask:
  • What is your long-term vision for the combined business? 
  • How do you plan to grow and expand our business post-acquisition?
  • What strategies do you have for enhancing our current offerings and capabilities?

Client and Service Management

• Questions to ask: 
  • How will the acquisition affect our existing clients?
  • What enhancements or changes can our clients expect in terms of services and support?
  • How do you plan to manage client relationships during and after the transition?

Financial and Deal Structure

• Questions to ask: 
  • What is the proposed financial structure of the deal (cash, rollover equity, earnouts)?
  • How do you value our business, and what are the key valuation drivers?
  • What are the potential financial benefits and risks associated with the proposed deal structure?
  • What portion of the consideration will be in the form of rollover equity?
  • How is the rollover equity structured, and what are the terms?
  • What are the historical performance and future prospects of the buyer’s business?
  • How are earnout targets defined, and what metrics are used?
  • What is the timeframe for achieving earnout targets?
  • What are the potential impacts of earnouts on business operations and integration?

Post-Sale Career Paths and Opportunities

• Questions to ask: 
  • What options are available for founders and key employees post-sale?
  • Can we choose different career paths within your organization?
  • What support will you provide for transitioning into new roles or responsibilities?

Synergies and Value Creation

• Questions to ask: 
  • What synergies do you anticipate from the acquisition? 
  • How do you plan to achieve cost savings, revenue enhancements, and operational efficiencies?
  • How will we benefit from these synergies, and what incentives are in place?

Integration Plan and Timeline

• Questions to ask: 
  • What is your integration plan for merging our businesses? 
  • What is the timeline for key integration milestones and activities?
  • How will you ensure a smooth transition for our employees and clients?

Conclusion

Thorough due diligence and asking the right questions are crucial for MSP sellers considering an M&A transaction. By seeking advice from experienced professionals and ensuring alignment with their goals and values, sellers can achieve a successful and mutually beneficial outcome.

www.linkedin.com/in/madhur-duggar

[email protected] | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedIn

Nagesh Nama, CEO of XLM is a serial entrepreneur who is leading the charge on applying one of the most exciting developments in AI Technology – Large Action Models to help clinical trials in the Healthcare industry run more efficiently. The clinical trial industry in the US is estimated at a ~$25bn and Nagesh and XLM are right in there with them. Nagesh has grown XLM from scratch to $4MN in revenue in 2024 and he is just getting started. Nagesh explains how he applies LAM technology to automate the validation of clinical trials, and why he thinks the application will ultimately extend to several huge sectors like Life Sciences, Manufacturing and Finance. Nagesh's journey is inspirational. This is a journey that will resonate with every person who has landed on the shores of the United States with huge courage, big dreams and no money or plan for how to go about getting there. He does that on the way. He fights. He figures it out. He keeps the faith.  Jump in to learn about LAM, XLM and Nagesh. 

www.linkedin.com/in/madhur-duggar

[email protected] | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedIn

This podcast provides 12 tips that sellers should follow when selling their business. If you wish to learn more about the middle market M&A world or listen to my other podcasts please connect with me over linked-in or email me at [email protected] and I’d be happy to share with you the URL for my other podcasts. 

1.     Understand Why You Are Selling – Get an assessment done beforehand.

2.     Keep the Sale of Your Company to Yourself – Avoid business disruption.

3.     Retain an Expert to Help with the Sale – Your advisor is your face to the market.

4.     List Your Company on an Exclusive Basis – Incentivize your advisor to work for you.

5.     Be Transparent Upfront to Avoid Bad Surprises – Bad surprises derail deals.

6.     Create a Market for Your Company – A competitive bidding process is necessary for value discovery.

7.     Be Realistic – Do not overprice your company, it will drive away buyers. 

8.     Stay Focused on Your Business – Do what you do best.

9.     Screen Buyers Carefully – Know who you just talked to.

10.  Consider the First Offer Very Carefully – All offers are welcome.

11.  Remain Flexible – Negotiate higher values through deal structure. 

12.  Trust Your Gut – It must feel right to you.

www.linkedin.com/in/madhur-duggar

[email protected] | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedIn

The consolidation of smaller sized managed service providers (MSPs) by platform MSPs started in the immediate aftermath of Covid and will accelerate even after rates have normalized because of key secular trends in the MSP industry. While the first phase of MSP consolidation is being driven by the need for acquirors to grow their platforms, the second phase of consolidation will be driven by smaller MSPs looking to exit an increasingly competitive environment with greater regulatory scrutiny. In this second phase, operational size, the strength and diversity of client relationships and attractiveness of geographic locations will be key competitive differentiators amongst target MSPs. As MSP platforms become larger, the revenue threshold below which MSPs will be too small to “move the needle” will likely rise over time. Owners of smaller MSPs, looking to exit, may find their buyer pool has shrunk, especially if their businesses are in slower growing towns. They should bake this potential outcome into their current thinking process.

www.linkedin.com/in/madhur-duggar

[email protected] | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedIn

The first document any Seller signs when starting their relationship with a potential advisor is typically a Seller Confidentiality Agreement. This podcast discusses some of the key aspects of this document that Sellers should expect. 

www.linkedin.com/in/madhur-duggar

[email protected] | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedIn 

In this episode, Madhur Duggar, M&A Advisor at Excendio Advisors, explores why private firms in the lower middle market should consider boutique advisory firms over large banks or DIY approaches when selling their business. Madhur outlines four key reasons: the importance of running a thorough buyer search to unlock true value, leveraging subject matter expertise to establish credibility, utilizing the seniority and gravitas of experienced advisors, and ensuring a confidential sale process. Tune in to discover how boutique firms like Excendio can maximize valuations while safeguarding your business's reputation. 

www.linkedin.com/in/madhur-duggar