MSP Mergers, Acquisitions: Free ConnectWise Software Offer
For an MSP, inking a merger or acquisition (M&A) agreement is the easy part. Successfully integrating the businesses, cultures, processes and underlying technology platforms is the hard part.
With that reality in mind, existing ConnectWise customers can get free software for a limited time under the following scenarios.
- Three Months Free: When the existing ConnectWise customer buys a business and migrates that business from a rival platform onto ConnectWise’s software.
- Six Months Free: When the existing ConnectWise customer buys a business and migrates that business from two rival platforms onto ConnectWise’s software.
I believe the offer is limited to rival RMM (remote monitoring and management) and PSA (professional services automation) platforms. And I suspect the free offer is only for the number of seats that the MSP migrates from a rival platform onto ConnectWise’s software. However, readers should check in directly with ConnectWise for exact terms and details of the three- and six-month free offers.
ConnectWise disclosed the offer during the IT Nation Connect 2018 conference in Orlando, but it was only a quick mention during a two-hour or so keynote from CEO Arnie Bellini, VP Arlin Sorensen and Chief Product Officer Craig Fulton (pictured above).
MSP Mergers and Acquisitions: White Hot Market
MSP M&A activity remains strong for several reasons, according to such experts as:
- Rick Murphy, CEO, Cogent Growth Partners
- Ramsey Sayhoun, Head of M&A, Evergreen Services Group
- Reed Warren, CEO, IT Valuations
The trio, speaking at an IT Nation Connect panel, pointed to the following M&A drivers:
- Cheap access to money: Low interest rates has made borrowing and funding an M&A deal relatively easy.
- Attractive business models: Recurring revenue models are attractive to private equity firms and other investors.
- Highly fragmented, maturing market: There are more than 40,000 MSPs in the highly fragmented U.S. market. And the market is maturing, which means consolidation is likely unavoidable.
- Demographics: Many MSPs are run by Baby Boomers who are looking to retire.
- IT market shifts: The accelerating pace of change — cloud, security, compliance, etc. — has further inspired many business owners to seek an M&A partner rather than pursue a new or emerging market on their own.