M & A SERIES
Size Doesn ’ t Matter :
How Smaller MSPs Are Making Big Gains Through Acquisitions
Learn how these CEOs of small to medium-sized MSPs successfully used acquisitions to scale their customer base , staffing , market reach , and more .
BY PEDRO PEREIRA
Charles Henson , CEO of Nashville Computer
Juan Carlos Bosacoma , CEO of CIO Landing
Shopping sprees in the managed services world aren ’ t just for private equity ( PE ) investors or enterprisesize “ Super MSPs .” Small and medium-sized MSPs want a piece of the action too . By buying other similarly sized MSPs and rolling them up , it opens faster paths to growth .
If you ’ ve been solely focused on growing organically , you may be missing an opportunity . But buyer beware . It ’ s important to shop wisely so you don ’ t end up with a purchase you ’ re stuck with and can ’ t return . Here are some tips for avoiding buyer ’ s remorse .
Following The “ Super MSP ” Playbook
This year , M & A activity in the MSP space will grow 50 %, according to Canalys research . While private investors drive much of this activity , small to medium-size MSPs are using acquisitions to acquire technical expertise , gain new customers , add new services , or expand geographically . If executed successfully , an acquisition can boost monthly recurring revenue ( MRR ), margins , and economies of scale . It ’ s a playbook many of today ’ s Super MSPs have followed .
For Juan Carlos Bosacoma , CEO of CIO Landing , an MSP with offices in Chicago and Miami , scale was the primary motivator when his company acquired BSSi2 in 2023 . “ The more seats you have , the lower your per-unit cost is , so that is one reason ,” he says . “ The other reasons are to acquire clients and acquire talent .”
Tennessee-based Nashville Computer gained additional staff with its two acquisitions , says CEO Charles Henson . One purchase brought Nashville Computer a much-needed Level 3 engineer . The other acquisition delivered marketing and bookkeeping personnel in addition to junior-level technical expertise .
“ I was able to fill some open positions I had within my organization . At the time , I did not have a marketing person and I was looking for a junior-level tech . It was beneficial for me to acquire this business because I gained access to additional resources ,” Henson says .
The purchases also boosted MRR and profit margins , he adds .
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