MSP Business School

In this insightful episode of MSP Business School, host Brian Doyle sits down with Abe Garver from Focus Investment Banking to delve deep into the dynamic landscape of Mergers & Acquisitions in the MSP industry. They discuss the incredible pace of MSP consolidation since 2020 and explore the strategic intricacies involved in navigating this vibrant market. Abe's vast expertise illuminates the discussion, providing listeners with a roadmap for successful transactions.

The conversation reveals the importance of planning and understanding before jumping into the M&A process. Abe emphasizes the necessity for sellers to contemplate "what's next" and offers resources like the book Halftime by Bob Buford to assist in this personal and professional reflection. SEO-optimized terms such as "M&A advisory," "MSP consolidation," and "investment banking" are woven throughout the transcript summaries, making this an indispensable listen for anyone involved in or considering a role in the MSP marketplace. Abe also highlights during the episode the critical importance of a trusted advisor and the necessity of culture alignment in successful sales.

• Strategic Preparation: Understanding personal and professional post-sale future is crucial before jumping into the sale process, as highlighted by Abe's recommendation of Halftime by Bob Buford.
• Realistic Valuation and Buyer Compatibility: Engaging with the right buyers who match the culture and deliver realistic valuations is essential for maintaining value post-sale.
• Importance of Licensing and Due Diligence: Hiring advisors with adequate licensing and expertise can prevent legal and financial pitfalls during the sale process.
• Resource Utilization and Networking: Utilizing established relationships and thoroughly vetting potential buyers and partners through earlier experiences is crucial.
• Marketplace Insight: Understanding industry trends and potential changes in valuation can determine the right timing for selling or purchasing an MSP.

Guest Name: Abe Garver

LinkedIn page: https://www.linkedin.com/in/abegarver/

Company: Focus Investment Banking

Company Website: https://focusib.com/ie/

Show Website: https://mspbusinessschool.com/

Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/

Sponsor vCIOToolbox: https://vciotoolbox.com

In this engaging episode of MSP Business School, host Brian Doyle welcomes Kyle Christensen, founder of Empath, to explore the rapidly evolving landscape of AI in the world of MSPs. With a rich background that includes time at Geek Squad and turning a small MSP into a hyperscaler, Kyle brings deep insights into both the opportunities and challenges that AI presents to the MSP sector. Listeners are introduced to the concept that while AI holds potential for incredible business transformation, the current scenario sees many businesses—including MSPs themselves—still in experimental phases of AI adoption.

As the conversation progresses, Kyle and Brian discuss the shift from a fear-driven sales approach to one motivated by FOMO. They stress how important it is for MSPs to establish a consultative relationship with their clients and adapt to each client's unique business processes for successful AI integration. The episode highlights the necessity of embracing AI not just as a tool but as a service-oriented opportunity that can lead to deeper client relationships and enhanced business value. They caution against setting unrealistic expectations or avoiding the full utilization of AI due to perceived complexities.

• Embrace AI with Curiosity: Both MSPs and their clients are still learning and experimenting with AI. Viewing AI as a field of exploration rather than immediate mastery can foster innovation.
• Shift from FUD to FOMO: Transitioning from fear-driven sales to leveraging clients' fear of missing out can create a more thriving business environment.
• Consultative Approach: The future success of MSPs lies in consulting, listening, and understanding individual client needs to integrate AI effectively into their processes.
• Monetizing Readiness Assessments: Properly executed readiness assessments, which might take several weeks, are crucial and should be a paid service.
• Growing Advisory Roles: There is a ripe opportunity for MSPs to strengthen their advisory roles amidst the AI transformation, preventing AI-exclusive consultants from taking over client relationships.

Guest Name: Kyle Christensen

LinkedIn page: https://www.linkedin.com/in/kylechx/

Company: Empath

Company Website: https://empathmsp.com/

Show Website: https://mspbusinessschool.com/

Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/

Sponsor vCIOToolbox: https://vciotoolbox.com

In this engaging episode of MSP Business School, host Brian Doyle welcomes back Larry Meador, Channel Chief at Cavelo, to discuss the ever-evolving challenges and opportunities within the managed service provider landscape. With an extensive background spanning over two decades, Larry brings a wealth of knowledge on cybersecurity, capacity issues, and the future impact of AI on threat management and risk reduction.

Larry Meador delves into the pressing issue of capacity constraints faced by MSPs when trying to scale their cybersecurity offerings. He underscores the importance of comprehensive cybersecurity measures, noting that "if you're not offering cybersecurity, you're not going to keep pace." With AI rapidly changing the threat landscape, MSPs are under pressure to evolve faster than ever. He shares how MSPs need to understand where their clients' sensitive data resides and who has access to it, warning that, "you can't protect what you can't see." Larry also introduces Cavelo's innovative approach to vulnerability and risk management, highlighting their AI-driven analyst, CORA, which helps automate prioritization and remediation processes, providing a strategic edge in managing cybersecurity tasks efficiently.

The episode further explores how AI and tools like Cavelo's platform can alleviate the ever-growing pressure on MSPs to enhance both efficiency and effectiveness in the cybersecurity domain. Larry emphasizes the need for visibility in data management, noting that true value comes when visibility translates into actionable insights. He also touches on the evolving metrics of cybersecurity given the maturing MSP industry and shares his thoughts on the ideal state of cybersecurity management enhanced by AI with guardrails, ensuring a secure yet controlled automated response strategy.

• Larry Meador emphasizes that maintaining robust cybersecurity offerings is crucial for MSPs to stay competitive in the rapidly evolving tech landscape.
• The growing demand for cybersecurity outstrips the capacity MSPs can typically supply, creating a significant need for automation and improved resource management.
• Cavelo's platform provides visibility into sensitive data locations, vulnerabilities, and user activity, enabling MSPs to efficiently reduce risk exposure.
• AI-driven tools, such as Cavelo's Cora, are transforming data analysis and vulnerability management, promising significant reductions in manual processing time and effort.
• The future of cybersecurity will increasingly involve AI-driven automated remediation with MSP-controlled guardrails to ensure effective and timely threat management.

Guest Name: Larry Meador

LinkedIn page: https://www.linkedin.com/in/larrymeador/

Company: Cavelo, Inc.

Company Website: https://www.cavelo.com/

Show Website: https://mspbusinessschool.com/

Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/

Sponsor vCIOToolbox: https://vciotoolbox.com

In this episode of MSP Business School, host Brian Doyle engages with guest Andrew Jordan to uncover the financial fundamentals essential for MSP success. The discussion pivots away from mergers and acquisitions to focus on immediate financial strategies that MSPs can deploy for profitability. Andrew shares insights from his journey from CPA to CFO, underscoring the importance of proper financial management and the pitfalls MSPs often face when setting up their books.

The episode provides a detailed walkthrough of smart financial practices for MSPs, highlighting the critical distinction between costs of goods sold and expenses. Andrew explains the necessity for MSPs to accurately determine their gross profit to guide strategic business decisions. He offers guidance on navigating common financial misconceptions and emphasizes the transformative impact of having a competent financial advisor. By emphasizing the personal side of business finances, Andrew encourages MSPs to shift their focus from survival strategies to sustainable growth and operational efficiency.

• Accurately differentiate between costs of goods sold and expenses to maintain a clear financial picture.
• Gross profit margins of 30-40% are indicative of healthy MSP operations.
• Understand and utilize financial statements as strategic tools, not just for tax filing.
• The key to business growth includes seeking financial mentorship and establishing a trusted partnership with an accountant or fractional CFO.
• Effective financial management can lead to the freedom of time and a well-balanced work-life dynamic.

Guest Name: Andrew Jordan

LinkedIn page: https://www.linkedin.com/in/andrew-jordan-cpa/

Company: Jordan CPA Services

Company Website: https://www.jordancpaservices.com/

Show Website: https://mspbusinessschool.com/

Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/

Sponsor vCIOToolbox: https://vciotoolbox.com

Welcome to another enlightening episode of the MSP Business School, featuring the insightful Shawn Walsh from Encore Strategic. In this episode, host Brian Doyle and Shawn dive deep into the intricacies of building and selling a successful MSP business. Shawn shares his unique transition from law enforcement to the world of MSPs, leveraging his skills in computer forensics to grow a thriving business which he ultimately sold to a private equity firm. His current role sees him mentoring MSPs on effectively planning their exit strategies well in advance.

In a conversation rich with actionable insights, Shawn and Brian explore common pitfalls that MSPs face, particularly around valuation and the importance of planning for an exit from day one. They discuss the Value Builder Assessment as a tool to measure a company's worth beyond just EBITDA, highlighting the crucial role of building a robust sales engine and the dangers of underpricing services. Shawn emphasizes the need for MSPs to distinguish themselves in the marketplace, warning against straddling the line between being a price leader and a value leader.

• MSPs should plan their exit strategies early, ideally beginning 10 years before the anticipated sale.
• The Value Builder Assessment can significantly enhance an MSP's valuation by focusing on multiple factors beyond EBITDA.
• Building a sales engine independent of the owner is crucial for an MSP's sustainable growth and value.
• Discounting services can undermine a business's perceived value; charge premium prices to ensure clients take the service seriously.
• Differentiation in the MSP space is vital; focus on boardroom-level conversations to emphasize business goals over technical jargon.

Guest Name: Shawn Walsh

LinkedIn page: https://www.linkedin.com/in/encorestrategic/

Company: Encore Strategic

Company Website: https://encorestrategic.io/

Show Website: https://mspbusinessschool.com/

Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/

Sponsor vCIOToolbox: https://vciotoolbox.com

In this episode of MSP Business School, host Brian Doyle welcomes James Kudla, founder of Kalutasan, to discuss the nuances of outsourcing support from the Philippines for MSPs. James shares his professional journey from mechanical engineering to owning a successful MSP, before venturing into the world of providing high-quality outsourced resources. The episode offers a comprehensive look at the benefits and logistics of leveraging international labor to enhance capacity and efficiency for managed service providers.

The conversation highlights how strategic outsourcing can address common MSP challenges, including staffing shortages, increasing operational costs, and improving response times. SEO keywords such as "outsourcing," "Philippines labor," and "MSP staffing solutions" are interwoven throughout the discussion, emphasizing the show's focus on innovative workforce management solutions. As a seasoned industry professional, James offers compelling insights into how outsourcing from the Philippines is transforming the MSP landscape, by combining English proficiency and technical expertise to offer significant cost savings and operational flexibility.

• Outsourcing to the Philippines can lead to cost savings of up to 70% compared to domestic staffing, providing a competitive advantage for MSPs.
• The culture and infrastructure in the Philippines have evolved significantly, making remote work efficient and reliable.
• Many experienced IT professionals in the Philippines have substantial MSP experience, making them valuable assets for service providers.
• James Kudla's own journey demonstrates the transformative potential of strategic staffing solutions in overcoming MSP challenges like staffing shortages and rising operational costs.
• The partnership with Kalutasan is not just about filling roles, but about creating career opportunities and development for Filipino professionals, while strengthening MSP capabilities in North America.

Guest Name: James Kudla

LinkedIn page: https://www.linkedin.com/in/jameskudla/

Company: Kalutasan, Inc.

Company Website: https://kalutasan.com/

Show Website: https://mspbusinessschool.com/

Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/

Sponsor vCIOToolbox: https://vciotoolbox.com

In this episode of MSP Business School, host Brian Doyle sits down with technology consultant and advisor James Davis to discuss the evolving landscape of the MSP industry. They dive deep into the transition from traditional break-fix models to the more integrated role of technology partners. Davis reflects on his own journey through various facets of the MSP world, offering rich insights into the shifts and transformations necessary for survival in the current digital age.

Throughout the conversation, Brian and James explore the changing expectations of the modern client, emphasizing the need for MSPs to move beyond just infrastructure management to a more consultative role in business growth. They navigate the complexities introduced by AI and cybersecurity, advising MSPs to not merely add these as cosmetic changes but to fundamentally reimagine their business models. Davis stresses the importance of understanding clients' business challenges and aligning with their strategic objectives, a notion he refers to as becoming a "Technology Solutions Partner" rather than remaining a traditional MSP.

• Evolving Roles: MSPs need to transition from break-fix models to a comprehensive consultative role, focusing more on data, workflow, and clients' business needs.
• Vertical Specialization: Emphasizing the importance of specialization, MSPs should consider vertical or horizontal approaches to better align with client industries.
• Client-Centric Approach: Prioritizing client conversations and understanding their challenges is crucial for developing relevant technology solutions.
• Skepticism of Industry Hype: Davis encourages skepticism of industry trends without real insight, urging MSPs to focus on client-specific needs over generic industry advice.
• Transformative Opportunities: Viewing modern challenges as opportunities for transformational growth, with a focus on advisory services, strategic conversations, and rising above infrastructure management.

Guest Name: Brian Davis

LinkedIn page: https://www.linkedin.com/in/thejamesdavisaus/

Company: The TSP Adivsory

Company Website: https://thetspadvisory.com/

Show Website: https://mspbusinessschool.com/

Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/

Sponsor vCIOToolbox: https://vciotoolbox.com

In this insightful episode of MSP Business School, host Brian Doyle welcomes esteemed guest Dave Sobel to discuss the hot topics circulating at the recent GTIA event, ChannelCon, in San Diego. The conversation dives into the prevailing discourse around artificial intelligence (AI) within the Managed Services Provider (MSP) space. Both Brian and Dave reflect on the parallels between the current AI boom and historical tech transformations, like the Internet and cloud computing. The episode focuses on the need for MSPs to thoughtfully engage with AI, recognizing both the hype and the genuine business applications it brings forth.

The dialogue progresses to address the delicate balance MSPs must maintain between educating and collaborating with clients on AI strategies, avoiding a stance that might come across as overly risk-averse. With AI consumption models evolving rapidly and differently, insights about navigating these changes are provided, emphasizing a strategic approach that aligns technology with business outcomes. Dave Sobel points out that deliberate action is more critical than ever, particularly as the MSPs' advisory role grows in importance to help clients harness AI's full potential while managing costs proficiently.

• Evolution of AI in MSPs: Understand the AI journey, drawing parallels with past innovations such as the Internet and cloud computing, while planning deliberate and thoughtful integration strategies.
• Strategic Positioning: MSPs should continue to position themselves as partners in AI's progression, providing expertise in selecting right tools and technologies that benefit businesses, without succumbing to the pressure of moving too hastily.
• AI's Economic Impact: The economic dynamics of AI differ from traditional software; increased AI usage may lead to higher expenses. Thus, understanding consumption billing and its implications is crucial.
• Customer Engagement: Proactive, collaborative conversations with clients about AI adoption and governance are essential, moving beyond fear-based tactics to foster innovation.
• Profitability Focus: Rather than rushing, focus on sustainable, profitable growth, aligning technological advancements with clients' specific needs and risk tolerances.

Guest Name: Dave Sobel

LinkedIn page: https://www.linkedin.com/in/davesobel/

Company: MSP Radio

Company Website: https://businessof.tech/subscribe/

Show Website: https://mspbusinessschool.com/

Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/

Sponsor vCIOToolbox: https://vciotoolbox.com

In this captivating episode of the MSP Business School podcast, host Brian Doyle converses with Megan Killion from Pisces Growth. This episode zeroes in on one of the most pressing challenges for Managed Service Providers (MSPs) - acquiring new customers. Megan Killion shares her story of accidental entry into the MSP domain and highlights her transformation from being an agency owner to a focused consultant. This episode is a must-listen for MSPs looking to enhance their go-to-market strategies, especially in a time dominated by digital transformations and AI.

Megan discusses the importance of a strong go-to-market strategy, emphasizing the need for well-aligned messaging and recognizing local market opportunities. She shares her experiences and stresses the significance of understanding customer needs and leveraging strategic insights to achieve business growth. Megan also touches upon the evolving role of AI in the industry, recommending MSPs to seize the opportunity and integrate AI into their service offerings to remain competitive. Her approach to business development is a blend of strategic insight, curiosity, and leveraging local reputations for building trustworthy relationships.

• Local Focus: Emphasize strengthening local market reputation to gain competitive advantages rather than overextending reach to unfamiliar markets.
• Targeted Messaging: Craft concise, targeted messaging that aligns with how potential clients self-identify and solve specific pain points they experience.
• AI Integration: Encourage MSPs to adopt and integrate AI into their processes and service offerings to remain competitive and meet client expectations.
• Client-centric Approach: Build strong relationships by focusing on understanding and solving client problems comprehensively, thereby enhancing value.
• Continuous Learning: Keep evolving your product offerings by revamping strategies and adapting to new technologies, ensuring future-proof MSP operations.

Guest Name: Megan Killion

LinkedIn page: https://www.linkedin.com/in/megankillion/

Company: Pisces Growth Consulting

Company Website: https://mkcagency.com/pgi/

Show Website: https://mspbusinessschool.com/

Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/

Sponsor vCIOToolbox: https://vciotoolbox.com

Join host Brian Doyle in the latest episode of MSP Business School as he delves into the evolving landscape of managed services with Finian Nally, the Director of Strategy at Sherweb for the UK and Ireland. As many MSP professionals find their initiation into the field starts with unexpected opportunities, Finian shares his unique career journey from technical support to strategic leadership, providing invaluable insights into the world of distribution and strategy formulation at Sherweb.

This episode unravels the intricacies faced by MSPs as they grapple with evolving market demands. With a focus on sales enablement and strategic partnerships, Finian highlights Sherweb's role in empowering MSPs to redefine their customer strategies and deliver outcome-based solutions. The discussion also explores the pressing need for MSPs to adopt AI by first implementing it internally, thus equipping them to better guide their clients through the AI revolution. The conversation scratches the surface of the challenges and opportunities that MSPs face today, providing a look into how Sherweb supports them in overcoming these hurdles.

• Growth Enablement Through Distribution: Sherweb positions itself as a growth enabler, helping MSPs build profitable business models through expert guidance in technical training and sales strategy.
• Outcome-Based Selling: To succeed in today's market, MSPs must pivot from traditional sales tactics to outcome-driven conversations that resonate with customer business objectives.
• Internal AI Adoption: MSPs should first deploy AI solutions internally to build confidence and expertise, which is critical before extending these services to their clients.
• Holistic Strategic Support: Sherweb's framework-based approach facilitates a comprehensive MSP development process, from cyber resilience to AI practice enhancements.
• Expect More from Distributors: Finian emphasizes that MSPs should "expect better" from their distributor relationships, seeking genuinely beneficial partnerships that transcend transactional interactions.

Guest Name: Finian Nally

LinkedIn page: https://www.linkedin.com/in/fnally/

Company: Sherweb

Company Website: https://www.sherweb.com/?utm_medium=Social&utm_source=LinkedIn&utm_content=CustomButton

Show Website: https://mspbusinessschool.com/

Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/

Sponsor vCIOToolbox: https://vciotoolbox.com