STATE OF THE INDUSTRY
Part 1
HOW TO AVOID SELLING YOUR COMPANY TO THE WRONG BUYER
TIPS FOR FINDING YOUR M & A MATCH
The one thing you will regret more than ever is selling the business that your blood , sweat and tears built and that you worked your a $$ off to grow to the WRONG buyer . Everyone is focused on the money , but there are other critical things to consider to ensure an M & A match made in heavan .
BY PEDRO PEREIRA
Joanna Mirov , Senior Advisor Of M & A - Netiva
Kathy Wagner , Chief Financial Officer - Kaseya
Neil Medwed , Vice President Of Corporate Development And M & A - Meriplex
As with any marriage , the courtship leading up to an M & A deal can reveal a lot about both parties . Ignore signs of trouble and you imperil the whole enterprise . Approach the prospective union with honesty and the chances of a match made in heaven multiply .
As those involved in MSP mergers and acquisitions can attest , these imperatives are critical to a successful union :
• Set the right expectations
• Have transparent communications
• Paint an accurate picture of your company
Anything less can derail a deal or result in a poor marriage , with buyers and sellers disagreeing on fundamental matters — customer service , work-life balance , and overall company philosophy .
It ' s NOT All About The Benjamins
“ I ’ ve seen a lot of acquisitions fail on culture more than anything else ,” says Kathy Wagner , chief financial officer at Kaseya , who has plenty of M & A experience . Kaseya has an M & A Concierge Platform that facilitates target identification of MSP buyers and sellers and helps them with post-sale integration and migration services .
Products , services , and people should all complement each other , according to Wagner . “ Different companies have different types of cultures ,” she says , “ and this is really a marriage .” One company may have a bare-bones staff working lots of overtime . Another may be more attuned to work-life balance or pampering employees with free goodies in the kitchen . “ Those guys are always going to be bumping heads if the values aren ’ t the same ,” Wagner notes .
A shared customer service orientation is essential , she adds , noting that “ some companies think the customer is right ; some companies think the customer is right within reason .”
Culture overshadows financial gain , says Neil Medwed , vice president of corporate development and M & A at Meriplex , a managed IT and cybersecurity provider with offices across the country . “ Our CEO actually turned down what
26 | MSPSUCCESS . COM