Skip to main content

Tag: Madhur Duggar IT M&A

Inside an AI-Enabled MSP

Written by Andy Mervis on . Posted in M&A Insights Podcast.

What’s Working What’s Next with Ed Correia CEO of Sagacent Technologies

AI isn’t a future problem for MSPs — it’s today’s competitive divide. In this episode, I sit down with Ed Correia, CEO of Sagacent Technologies, a 26-year MSP based in Silicon Valley, to break down exactly how managed service providers can harness AI to create value, boost margins, and protect their clients.

Ed shares how Sagacent is helping clients crawl–walk–run into AI safely — from writing governance policies and securing Shadow AI, to deploying tools like Copilot and ChatGPT for real productivity gains.

We explore:

  • Why Shadow AI is already inside your clients?
  • Where most businesses fail with AI (95% see no financial benefit)?
  • How MSPs should package, train, secure, and operationalize AI?
  • Why pricing pressure is coming fast — and how the right AI strategy protects margins?
  • What types of clients get the most benefit (hint: maturity matters)?
  • Whether MSPs should build, partner, or buy AI capability?
  • What happens to firms that ignore AI over the next 12–18 months?

Ed also shares tactical advice for MSP owners:

Start with your internal workflows, build governance first, iterate fast — and don’t wait for perfection.

If you’re an MSP thinking about offering AI services — or wondering what changes are coming to your stack, pricing, and client conversations — this is one you can’t miss.

This podcast is hosted by Madhur Duggar.  Madhur is a Senior M&A Advisor at Excendio Advisors and focuses on IT Services

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio.com

Reach out to Ed Correia on LinkedIn

 

OBBBA Explained

Written by Andy Mervis on . Posted in Legal, Tax & Regulatory Considerations, M&A Insights Podcast.

The Tax Changes Every MSP Should Care About with Dave Wanis, Principal at Weaver

Episode 3 of our four-part tax series with Dave Wanis, Principal at Weaver, focused on how the One Big Beautiful Bill Act (OBBBA) reshapes tax planning for MSPs and IT service providers.

If you’re an MSP owner preparing for growth, evaluating an exit, or just trying to lower your tax bill, this episode breaks down the most important OBBBA updates you need to know.

Key Topics Covered:

• QSBS (Qualified Small Business Stock) Changes – Learn how the new 3-, 4-, and 5-year holding periods, the increased $75M asset limit, and the higher $15M exclusion can dramatically improve after-tax proceeds for MSP owners planning a sale.

• QBI Deduction for S-Corp MSPs – The 20% Qualified Business Income deduction is now permanent. We explain how MSPs qualify, how W-2 wages affect your deduction, and how to optimize salary vs. distribution strategy to maximize your QBI benefit.

• R&D Expensing for MSPs and IT Service Firms – The return of immediate R&D expensing has the potential to significantly reduce taxable income for MSPs investing in internal software tools, automation, cyber capabilities, and AI development.

• 163(j) Interest Deductibility (EBITDA Is Back) – OBBBA restores EBITDA for interest-deduction calculations, making leveraged acquisitions and growth financing more attractive. This matters for MSPs doing roll-ups or selling to buyers using debt.

Why This Matters for MSP Owners

OBBBA’s tax changes affect annual cash flow, business valuation, deal structure, and exit readiness. Whether you’re planning an acquisition, considering QSBS before a sale, or optimizing tax strategy inside an S-Corp, the new law offers significant opportunities—if you know how to use them.

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.
To learn how we help MSPs grow or exit, reach out at ved.sdarb.gs.2oidnecxeobfsctd-44a186@ruhdam or connect on LinkedIn.

Madhur Duggar is a Senior M&A Advisor at Excendio Advisors and focuses on IT Services

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Dave Wanis on LinkedIn

 

Asset or Stock Sale?

Written by Andy Mervis on . Posted in Legal, Tax & Regulatory Considerations, M&A Insights Podcast.

The Tax Decision That Defines Your Exit with Dave Wanis, Principal at Weaver

Most MSP owners spend years building their business but only a few hours thinking about how to sell it. That’s a problem — because the structure of your sale, not just the price, determines how much of that check you actually keep.

In my latest M&A Insights conversation with Dave Wanis, Tax Principal at Weaver, we unpacked how deal structure can quietly swing your after-tax outcome by seven figures.

  • Asset Sales: Painful for Sellers, Profitable for Buyers

From a seller’s perspective, asset sales usually mean higher taxes. They can trigger both corporate and individual-level taxation and reclassify part of your gain as ordinary income — taxed up to 37%. But for buyers, asset deals come with a major advantage: a stepped-up basis that allows them to depreciate or amortize the assets they just purchased.
Smart sellers know this — and negotiate to capture part of that buyer benefit in the purchase price.

  • The Hidden $1 Million in Goodwill

Under current rules, the buyer can amortize goodwill from an asset purchase over 15 years. For a $10 million MSP, that goodwill deduction can be worth close to $1 million in present value — but only if it’s an asset sale. Pro tip: ensure your MSAs and client contracts are assignable before you go to market. Otherwise, that goodwill advantage could vanish during due diligence.

  • Stock vs. Asset vs. F-Reorg: Finding the Middle Ground

Here’s the tradeoff:

  • Stock sales yield lower taxes for sellers.
  • Asset sales yield higher deductions (and thus higher value) for buyers.
  • F-Reorganizations can give you both — a clean legal stock sale that’s treated like an asset sale for tax purposes.

Dave calls these “have-your-cake-and-eat-it” structures, but they need early planning and the right tax counsel to execute.

  • Cash Isn’t Always King

It’s tempting to take all-cash at close. But remember: cash is immediately taxable, while rollover equity lets you defer taxes and participate in future upside.
In a high-rate environment, that deferral can be extremely valuable — especially if you believe the acquirer’s equity will appreciate over time.

  • The Takeaway

Don’t wait until you have an LOI to think about tax structure.
As Dave put it, “Once you know you’re going to sell, start the conversation — even if the sale is five years away.”

Because in M&A, the difference between a good deal and a great one often comes down to how it’s structured, not just how it’s priced.

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.
To learn how we help MSPs grow or exit, reach out at ved.sdarb.gs.2oidnecxeobfsctd-1de970@ruhdam or connect on LinkedIn.

Madhur Duggar is a Senior M&A Advisor at Excendio Advisors and focuses on IT Services

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Dave Wanis on LinkedIn

 

Why is Your Finance Function Worth Two Turns of EBITDA?

Written by Andy Mervis on . Posted in Business Valuation Insights, M&A Insights Podcast.

With Brandi Bonds Managing Partner at Next Level Now

Most MSPs run their business from the bank account. And that’s exactly why they leave money on the table.

In this episode of M&A Insights, Brandi Bonds — Managing Partner at Next Level Now — breaks down how to turn your financials into your competitive advantage.

If you’re an MSP owner who’s great at operations but still flying blind on finance, this one’s for you.

Here are some of her mic-drop moments ?

The sale of your business comes down to whether you make money.
It may be about clients and employees for you, but it still needs to translate into profits.

If finance isn’t one of the legs on your stool, you won’t be a high-performing MSP.
Treat finance as a growth driver, not an afterthought.

The best MSPs close their books monthly, practice accrual accounting and forecast within five percent. That’s what confidence looks like to a buyer.
If you track your numbers with discipline today, you’ll have options tomorrow..

A data room isn’t just for buyers — it’s for you. It’s how you prove you’re running a serious business.
Data-driven clarity will add points to your margin and turns to your multiple.

Most MSPs have a PSA problem, not because of the software — but because they don’t use the data to run the business.
MSPs focus on operations not on finance. Use technology strategically.

If you’ve collected $200K of advanced revenue but your bank account is at $100K you’re living off money you haven’t earned and buyers will catch that
Clean add-backs, accrual books, and revenue recognition alone can add 1–2 turns to your EBITDA multiple.

Know your Staff utilization. Utilization is down from 85%-90% to 50%-60% and it is killing margins.
Low staff utilization is one of the biggest money losers.

Know your add backs and take them because buyers won’t do that for you!
Don’t wait for buyers to tell you what your add backs should be.

If someone says they are a CFO and they will get your books closed they are not a CFO. They are a controller.
Get the right level of strategic help for your stage.

Madhur Duggar is a Senior M&A Advisor at Excendio Advisors and focuses on IT Services

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Brandi Bonds on Linkedin

 

Sole Prop, S-Corp, or C-Corp?

Written by Andy Mervis on . Posted in Legal, Tax & Regulatory Considerations, M&A Insights Podcast.

Demystifying Early Tax Strategy for Founders

M&A Insights New Podcast Episode Drop!
? Founders: Choosing between a Sole Prop, S-Corp, or C-Corp can make or break your tax strategy.

I sit down with Dave Wanis, Tax Principal at Weaver, for the first episode in a series we’re doing together on tax strategy for entrepreneurs.

? This episode is titled:
“Sole Prop, S-Corp, or C-Corp? Demystifying Early Tax Strategy for Founders”

?️ Dave put it best: “The most tax-efficient thing you can do is talk to an advisor early and often.”

? Key Takeaways:

  • Plan Early, Review Often: The biggest founder mistake? Setting up an entity on Day One and never revisiting it. Your structure should evolve with your business.
  • Flexibility of LLCs: LLCs aren’t just one thing — they can be taxed as a Sole Proprietorship, Partnership, S-Corp, or C-Corp. Choices will vary depending on many moving pieces including current and future profitability, salary needs and exit horizon
  • Self-Employment Tax Surprises: Sole proprietors often miss that 100% of income is subject to self-employment tax — a costly mistake if you’re not prepared.
  • S-Corp Advantages: With S-Corps, founders must pay themselves a salary, but profits above that can avoid employment tax — creating real tax savings.
  • State Nexus Risks: Expanding across states? Watch out for state income, payroll, and sales taxes. Ignoring “nexus” is one of the biggest red flags Dave sees in diligence.
  • Investor Readiness: Entity choice today impacts investor interest tomorrow. Acceptance of S-Corps is increasing although recent regulatory changes are making C-Corps more attractive.

This is just the start — we’ll be diving into more advanced topics with Dave in upcoming episodes (think asset vs. stock sales and Section 1202).

Madhur Duggar is a Senior M&A Advisor at Excendio Advisors and focuses on IT Services

Reach out to Madhur at ved.sdarb.gs.2oidnecxeobfsctd-59a2c0@ruhdaM or 212.731.4230

Book an Appointment with him on his LinkedIn.

Check out Excendio Advisors and our amazing content at excendio2.sg.brads.dev.

What Every MSP Should Know About Financial Due Diligence

Written by Andy Mervis on . Posted in FAQs & Myth-Busting, M&A Insights Podcast.

What Every MSP Should Know About Financial Due Diligence Before Going to Market

I sit down with Dan Brumwell Partner in Weaver’s Transaction Advisory Group to discuss Financial Due Diligence, a key component of the due diligence process. 

Below are the questions discussed, along with a high level summary of the answer. Enjoy!

1. Weaver Background

2. Quality of Earnings (QoE): The Basics

Q: What is a QoE and why is it important?
Q: What are core components of a QoE?
Q: How is revenue broken down (monthly vs. annual)?
Q: What if data isn’t easily available?
Q: Can QoE show profitability per customer?
3. Audited Financials vs. QoE

Q: How is a QoE different from audited financials?

4. Common Adjustments in MSP QoEs

Q: What adjustments do you typically make?

5. Key Metrics and Red Flags

Q: What financial red flags do you often find?
Q: How do you handle churn metrics?

6. Net Working Capital (NWC) Essentials

Q: What is NWC and why is it important?
Q: How is NWC calculated?
Q: Common seller misunderstandings?

7. Process & Client Communication

Q: What does a typical engagement look like?
Q: Who participates in diligence calls?
Q: What if info is hard to get?
Q: How do you handle tight deadlines?

8. Seller-Side QoE: Why It Matters

Q: Why should a seller do a QoE report?
Q: When should MSPs do this?

9. Market Trends & Future of Diligence

Q: What trends are you seeing?
Q: Will QoE become fully automated?

10. Final Tips

Q: What’s your advice for MSPs thinking of selling?

? Tune in now to learn how to own your financial due diligence process.

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Dan Brumwell on LinkedIn

 

Demystifying the Listing Agreement What You Should Know

Written by Andy Mervis on . Posted in Legal, Tax & Regulatory Considerations, M&A Insights Podcast, M&A Process & Timeline.

You’ve decided to sell your business and have finally selected an M&A advisor to help you through the process. Then comes the listing agreement—and suddenly things get murky. Why is it exclusive? Why the hefty fees? Why are you bound to it for a year—and what exactly is a tail period?

If you’ve ever reviewed a listing agreement, you’ve likely asked these questions. Here’s a simple, jargon-free breakdown of what you’re signing and why it’s structured that way.

1. Exclusivity: Why It Matters

Exclusivity means you agree to work only with one advisor during the sale process. It may seem limiting, but it actually protects your interests. Multiple advisors reaching out to the same buyers can cause confusion, damage your credibility, and weaken your negotiating position.

Exclusivity also ensures that all buyer inquiries go through your advisor—helping them build a competitive market for your firm. Even if a buyer comes directly to you, referring them to your advisor allows that interest to be leveraged to raise your valuation.

2. Fee Structures: Are They Fair?

Most M&A advisory fees follow a “success fee” model—a percentage of the final sale price that decreases as the deal size increases. While some advisors charge retainers and expenses upfront, others like Exendio Advisors often work on a success-only basis.

To put it in context: when selling a home, you might pay 5% in broker fees—even though the listing is on Zillow. In contrast, selling a business is significantly more complex and requires deeper expertise, networks, and months of dedicated effort. Considering the value an experienced advisor brings; the fees are often well-justified.

3. The One-Year Commitment: Why So Long?

Most agreements have a one-year term—but that doesn’t mean it’ll take that long. The goal is to close within 4 to 6 months. The one-year period provides a buffer in case of delays from market volatility or business changes (think: COVID-19 disruptions). It ensures your advisor can see the process through without unnecessary resets.

4. The Tail Period: Protecting Market Leverage

The tail clause usually extends for two years after the agreement ends. It requires that if a buyer—introduced during the listing period—comes back later to do a deal, the advisor still gets compensated.

Why? Without a tail, buyers could just wait out the agreement to avoid paying a fee. That undermines your ability to build a competitive buyer pool. The tail keeps the playing field level, ensuring all serious buyers engage during the active process and you retain maximum leverage.

Final Thought:
Listing agreements may seem intimidating at first glance, but when understood properly, they’re designed to protect your interests and maximize your outcome. Always ask questions, and make sure you’re comfortable with the terms—but know that most of these clauses are standard and serve a strategic purpose.

Embarking on your MSP’s Build-Prepare-Exit journey needs planning from inception to exit. Too many MSP founders are getting to their exit gates and finding they don’t have all the pieces they need for a successful sale. If you are navigating through the challenges of growing your business and planning for an eventual exit, we invite you to connect with Madhur Duggar, Senior Advisor at Excendio Advisors.

Madhur Duggar is a Senior M&A Advisor at Excendio Advisors and focuses on IT Services

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

 

Selling Like a Lion: A Guide for MSPs

Written by Andy Mervis on . Posted in Business Valuation Insights, M&A Insights Podcast.

To Master the Sales Jungle with Matthew Koenig, VP of Channel Sales at Nodeware

In this episode of M&A Insights, I sit down with Matt Koenig, VP of Channel at NodeWare, to tackle one of the biggest challenges MSP founders face: selling with confidence and clarity.

Matt explains why sales success starts with your mindset — the “lion mentality.” The lion rules the jungle not because it’s the biggest or smartest, but because it knows what it wants and goes after it with focus and determination. MSP founders, too, need to shed fear and take control of the sales conversation.

We also walk through a step-by-step sales process MSPs can use to win better clients, earn fair pricing, and grow sustainably:

  • Discovery — Understand the client’s business, uncover pain points, and get decision-makers in the room.
  • Assessment — Audit both the technical and people environments and relate findings to business outcomes.
  • Proposal — Present your solution live, clearly tied to the client’s priorities, and framed in terms of business impact.
  • Project Plan — Show a clear, actionable path forward with realistic timelines and milestones.
  • Pricing — Position your pricing as a reflection of your value, not just a number, and handle objections confidently.

We discuss how to ask the right questions at each stage, how to overcome objections (especially about price), when and how to hire your first salesperson, and why it’s crucial to make room operationally before taking on new clients.

Matt also shares his dos and don’ts for MSP sales — from building trust and presenting proposals live, to avoiding the trap of competing only on price or hiring salespeople on straight commission.

If you’re ready to stop fearing sales and start approaching it like a lion, this episode is packed with real-world advice and actionable strategies.

? Tune in now to learn how to own your sales process and grow your MSP with confidence.

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.
To learn how we help MSPs grow or exit, reach out at ved.sdarb.gs.2oidnecxeobfsctd-625ad7@ruhdam or connect on LinkedIn.

Madhur Duggar is a Senior M&A Advisor at Excendio Advisors and focuses on IT Services

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Matt Koenig on Linkedin

 

How to Sell Cyber and Have Fun Doing It

Written by Andy Mervis on . Posted in Business Valuation Insights, M&A Insights Podcast.

With Matt Koenig, VP of Channel Sales at Nodeware

Cybersecurity is no longer a “nice-to-have” — it’s essential. But for many MSPs, selling it effectively (and confidently) is still a challenge.

In this episode, I talk with Matthew Koenig, VP of Channel Sales at Nodeware, about how MSPs can position themselves as trusted business partners, not just tech vendors, and make the cyber sales process both effective and enjoyable.

We cover:
? Why the $109B SMB cyber market is the opportunity of the decade
? How to run business-driven Discovery conversations
? What to include in a Security Assessment — and how to present it
? Why bundling your cyber offering beats line-item pricing
? How trust, storytelling, and confidence help you close deals
? Tips for aligning cyber services with compliance and insurance needs

Whether you’re struggling to start the conversation or looking to take your cyber sales to the next level, this episode gives you actionable insights — and shows that selling cyber doesn’t have to be scary.

? Listen now to learn how to sell cyber — and have fun doing it!

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Madhur Duggar is a Senior M&A Advisor at Excendio Advisors and focuses on IT Services

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Matt Koenig on Linkedin

 

Cyber Insurance Best Practices for MSPs

Written by Andy Mervis on . Posted in Business Valuation Insights, Legal, Tax & Regulatory Considerations, M&A Insights Podcast.

5 Things You Must Get Right with Thomas Fafinski at Virtus Law

Whether or not you provide cyber services to your client, you are still exposed to cyber liability.

I sit down with one of the most prominent lawyers in the country specializing in MSP legal practices, Thomas Fafinski. Thomas is joining to talk about a topic that is front and center in the MSP space today – Cybersecurity and what are some of the best practices MSPs should be following when protecting themselves against cyber liability.

As an MSP, your clients expect you to “handle everything cybersecurity”—but when a breach happens, who’s really liable?

Cyber insurance can be your safety net—or a false sense of protection—if you don’t understand the fine print. Here are 5 critical best practices every MSP should implement to protect themselves, their clients, and their reputation:

✅ 1. Know What You’re Actually Responsible For
Most breaches are due to admin or physical errors—not tech failures. Make sure your MSA is crystal clear about what you do (and don’t) cover.

✅ 2. Don’t Rely on Generic Contracts
Include language in your MSA that limits liability for 3rd-party criminal acts, requires clients to carry cyber coverage, and defines scope precisely. (Look up Travelers v. Portal Healthcare if you want to see how vague language can lead to years of litigation.)

✅ 3. Watch Out When Switching Policies
That lower premium? It likely comes with a tighter coverage window. If you’re on a claims-made policy and switch carriers, you could lose retroactive coverage and end up footing a massive bill.

✅ 4. Understand What’s Not Covered
Some insurers deny claims for “nation-state” attacks like NotPetya, citing “act of war” exclusions. Ask your broker about gaps related to ransomware, cloud outages, and regulatory fines.

✅ 5. Choose a Carrier Who Shows Up Fast
The best insurance isn’t just about reimbursement—it’s about real-time help. Look for 24–48 hour response times, breach response coordinators, and a vetted incident response panel.

? Bonus: Proactively reduce risk by offering vCISO services, enforcing MFA, and requiring client-side security hygiene.

? Final Thought: The best MSPs aren’t just tech experts—they’re risk managers. If you’re not reviewing your insurance language annually, you’re leaving your firm exposed.

? Curious how others in the space are structuring their MSAs or choosing carriers? Let’s start a conversation.

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.
To learn how we help MSPs grow or exit, reach out at ved.sdarb.gs.2oidnecxeobfsctd-1ca37b@ruhdam or connect on LinkedIn.

Madhur Duggar is a Senior M&A Advisor at Excendio Advisors and focuses on IT Services

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Thomas Fafinski on LinkedIn.

 

What Does a Best-In-Class MSP Look Like?

Written by Andy Mervis on . Posted in Business Valuation Insights, M&A Insights Podcast, Preparing the Business for Sale.

Listen to What Peter Kujawa, EVP and GM at Service Leadership and IT Nation Has to Say

What does a Best-in-Class MSP look like? To find out the answer to this question and many more, I have on my show today the man himself, Peter Kujawa, EVP and GM at Service Leadership and IT Nation. Founded in 2001 by Paul Dippell and acquired by ConnectWise in 2020, Service Leadership does some of the most comprehensive benchmarking work in the IT services space including around MSPs. If you like data based decisioning around MSPs, this is your stop. Listen in!

Here are some of the key topics and questions discussed on this podcast

  • What is Service Leadership and How is it Helping the MSP Community?
  • What Does SL Use to Benchmark MSPs?
  • Does Size Matter to be a Best-in-Class MSP?
  • What Does Best-in-Class Look Like for
    1. Topline Growth
    2. Gross Margin
    3. EBITDA
  • What Does it Mean to be Operationally Mature at SL?
  • Does Location Matter to be Best-in-Class?
  • What Advice does Peter Have for MSPs?
  • Should You Run Your Business As if You Were Getting Ready to Exit?
  • What Are Some Key Risks and Opportunities You Should Be Thinking About as an MSP Founder?

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Peter Kujawa on LinkedIn

 

How MSPs Thrive in Healthcare

Written by Andy Mervis on . Posted in M&A Insights Podcast.

With Nelson Gomes, CEO and Founder of Portalia Group

In this episode, Nelson Gomes shares a masterclass on what it takes to be a high-performing MSP in the healthcare vertical. From EMR optimization and patient engagement to AI adoption and M&A strategy, Nelson breaks down how MSPs can move beyond maintenance to become true transformation partners for their healthcare clients.

Whether you’re looking to grow, specialize, or position your MSP for a successful exit, Nelson offers real-world insights drawn from decades of leadership in healthcare IT.

? Questions & Responses:

Q: From an MSP standpoint, what makes healthcare different in terms of the skill set required?
? Understanding the business of healthcare is critical — it’s not just fixing EMRs, it’s optimizing them and knowing the clinical workflows.

Q: How do specialist MSPs create more value than generalists?
? Specialists speak the same language as providers and win trust faster — 9 out of 10 times, they win the deal.

Q: What are healthcare organizations really looking for when selecting an MSP?
? Experience, expertise in healthcare systems, and a sense of security that their MSP “gets it.”

Q: What kind of background should MSPs build to succeed in healthcare?
? A strong healthcare foundation — either through EMR experience or supporting medical administration systems.

Q: Can you explain Gartner’s “Run, Grow, Transform” model?
? Most MSPs focus on “Run” — daily maintenance — but true value is created through “Grow” and “Transform” initiatives.

Q: What’s a real-world example of transformation in action?
? Helping practices adopt patient engagement apps — moving beyond IT support into strategic consulting.

Q: What role should MSPs play in M&A due diligence for healthcare?
? IT due diligence is often overlooked. Nelson helped create a 6-part framework to standardize and simplify this critical process.

Q: Should MSPs trying to enter healthcare build or buy?
? Buy. Acquiring a healthcare-focused MSP gives you immediate credibility, clients, and expertise.

Q: Where is AI playing the biggest role in healthcare today?
? Diagnostic imaging, like mammography. AI is powerful, but needs clinical oversight and thoughtful adoption.

Q: What healthcare tech events should MSPs attend?
? HIMSS, ViVE — critical for staying ahead of tech trends and industry expectations.

Q: What advice do you have for MSPs expanding into healthcare?
? Have a clear, well-thought-out strategy and the right people to execute it.

Q: How should smaller MSPs think about scale and specialization?
? If you’re not ready to scale, consider exiting at a good multiple to a larger player and learn from the experience.

Q: Grow solo or partner up?
? Joining a platform can accelerate growth — faster path to value creation than going it alone.

Q: Final takeaway for MSPs?
? Understand your value, define your personal goals, and have an advisor to guide you through transitions.

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Nelson Gomes on LinkedIn.

 

MSP M&A Uncovered

Written by Andy Mervis on . Posted in Buyer Types & Buyer Behavior, M&A Insights Podcast.

Inside Courser’s Acquisition Playbook with David Williams, VP of M&A

In this episode, host Madhur Duggar welcomes Dave from Courser to discuss the company’s M&A strategy, integration approach, and growth plans for 2025. Dave shares insights into Courser’s acquisition philosophy, emphasizing a strong focus on culture, leadership retention, and operational integration.

M&A Activity and Strategy
Courser, a PE-backed platform, has completed 16 acquisitions in the past two and a half years, including nine in 2024. The company aims to maintain or exceed that pace in 2025. Their acquisition targets range from $1M to $15M in revenue, with an average size of $7M-$7.5M. Courser is sector-focused, primarily acquiring MSPs and occasionally considering MSSPs with strong cybersecurity capabilities.

Integration Approach
Courser differentiates itself through its deep integration model. While externally the acquired company’s branding and leadership remain intact, internally, Courser standardizes back-office functions, finances, HR, and operations. They migrate all businesses onto a unified ConnectWise instance, creating a single-pane-of-glass view for management. This structured approach enables efficiency and scalability while ensuring a smooth transition for employees and customers.

Deal Structure
Courser typically structures its deals with a mix of cash and rollover equity (30-40%). Earn-outs are rare and used primarily in tuck-in acquisitions where revenue stability needs validation. They prioritize clear, seller-friendly structures that align incentives for long-term growth.

Challenges and Risks in M&A
Dave highlights common M&A risks, including leadership transitions, cultural misalignment, and integration challenges. He emphasizes the importance of talent and customer retention, especially as the industry undergoes significant consolidation. Courser mitigates these risks by focusing on culture, selecting growth-minded leaders, and ensuring operational stability post-acquisition.

Future Outlook
Looking ahead, Courser aims to continue its disciplined acquisition strategy, focusing on quality MSPs with strong leadership and recurring revenue. They also acknowledge the growing role of AI and automation in IT services and plan to enhance efficiencies through technological adoption.

The discussion concludes with reflections on broader industry trends, including the eventual exits of PE-backed MSP platforms and how integration strategies will play a key role in their long-term success.

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Dave Williams on LinkedIn

 

Cyber Insurance Uncovered: Protecting Small Businesses

Written by Andy Mervis on . Posted in M&A Insights Podcast.

Learn How Doug Kreitzberg at SeedPod is Working With MSPs to Protect Small Businesses from Digital Threats

Welcome to the next episode of my podcast M&A Insights titled “Cyber Insurance Uncovered: Learn How Doug Kreitzberg at SeedPod is Working With MSPs to Protect Small Businesses from Digital Threats”. 

Small businesses are increasingly the target of cyber threats, yet most remain dangerously underinsured. Only 10% have cyber insurance, and even fewer have the right coverage to survive a serious attack. So, how can Managed Service Providers (MSPs) step in to help?

To answer that question, I’m joined by Doug Kreitzberg, Founder and CEO of SeedPod Cyber. At SeedPod, Doug has developed an innovative program that help businesses proactively manage cyber risks. His team works closely with MSPs to ensure small businesses get the protection they need—before disaster strikes.

In today’s discussion, we’ll uncover the biggest misconceptions about cyber insurance, why small businesses struggle to get the right coverage, and how MSPs can play a pivotal role in bridging the gap. Doug will also share insights into SeedPod’s risk assessment process, the evolving landscape of cyber insurance pricing, and practical steps businesses can take to improve their cybersecurity posture.

If you’re an MSP looking to add value for your clients—or a business owner trying to navigate the complex world of cyber risk—this episode is for you.

Topics discussed on this podcast include:

Key Topics Discussed:

✅ Cyber Insurance Landscape for Small Businesses:

  • Are small businesses adequately insured against cyber risks today?
  • What are the risks of relying on general liability policies for cyber coverage?
  • What happens to small businesses that suffer multiple cyberattacks?

✅ Understanding Cybersecurity Risks:

  • Where does most cyber risk come from—bad software or bad deployment?
  • Who should own the deployment risk—software providers, businesses, or MSPs?

✅ Challenges in Cyber Insurance Adoption:

  • Are small businesses qualified to purchase cyber insurance on their own?
  • Why do many brokers lack the expertise to properly guide businesses on cyber policies?

✅ The Role of MSPs in Cyber Insurance:

  • How does SeedPod Cyber work with Managed Service Providers (MSPs)?
  • What role do MSPs play in educating small businesses about cyber risks?
  • How does SeedPod validate MSPs through security assessments?

✅ Key Components of a Comprehensive Cyber Insurance Policy:

  • Liability coverage: What does it protect against?
  • First-party costs: What expenses are covered after a cyber incident?
  • Loss of income coverage: How does it help businesses recover financially?
  • E-fraud coverage: How does it protect against social engineering scams?

✅ Cyber Insurance Pricing & Risk Assessment:

  • How are insurance companies currently pricing cyber risks?
  • What are the challenges in developing actuarial models for cyber insurance?
  • How does SeedPod’s risk assessment process work, and what does it evaluate?

✅ Regulatory & Security Best Practices:

  • Can regulations improve the cybersecurity landscape?
  • How should regulations hold software developers and MSPs accountable?
  • What are the basic steps businesses should take to improve cybersecurity?

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Doug Kreitzberg on LinkedIn

 

IT Nation Unplugged: Growth, Exit & Legacy

Written by Andy Mervis on . Posted in Business Valuation Insights, M&A Insights Podcast, Preparing the Business for Sale.

Arlin Sorensen on Navigating Growth, Exit & Legacy as an MSP Owner

In this episode of M&A Insights, I sit down with Arlin Sorensen at IT Nation ConnectWise to explore the evolution of IT Nation, discuss the biggest challenges facing MSPs today, and how Arlin thinks MSP owners should approach their inevitable transition be it through sale, transfer to a family member or to an ESOP.

Arlin shares invaluable insights from his decades of leadership experience, making this a must-listen for MSP owners, IT leaders, and anyone thinking about the future of their business.

In this podcast we discuss the following questions:
✅ IT Nation’s Role in the MSP Ecosystem – its mission, vision, and impact on MSPs

✅Leadership – Advice for MSP owners looking to develop their leadership skills
✅ Acquisition and Growth– Insights for MSPs looking to grow inorganically
✅ Industry challenges – Tackling cybersecurity threats and IT talent shortages
✅ Post-exit challenges – Challenges MSP owners face in transitioning to retirement including lack of financial planning and a loss of identity post-retirement
✅ Future of IT Nation – Upcoming innovations at IT Nation and the establishment of a global footprint

✅ Personal Insights – Leadership philosophy, the upside-down triangle and Arlin’s legacy

✅ Key Risks facing MSPs– The importance of thinking about your mental and physical health

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Arlin Sorensen on LinkedIn

 

Achieving Operational Maturity as an MSP

Written by Andy Mervis on . Posted in Business Valuation Insights, M&A Insights Podcast.

A Conversation with Sean Maguire, President and Founder of Synivate

In this episode of M&A Insights, I sit down with Sean Maguire, president and founder of Synivate, to explore the journey of building and scaling a successful MSP. Sean shares his insights on standardizing service delivery, cybersecurity best practices, and the role of M&A in strategic growth. Whether you’re an MSP owner looking to improve operational efficiency or an investor exploring opportunities in the space, this conversation offers valuable takeaways.

Topics Discussed & Key Questions:
✅The Evolution of Synivate: How did Sean transition from voice and data cabling to a full-fledged MSP?
✅ Challenges in Scaling an MSP: What were the biggest obstacles in growing the business, and how were they overcome?
✅ Standardization & Operational Maturity: Why is having a structured, repeatable process critical for MSPs?
✅ Cybersecurity & Compliance: How does Synivate ensure its clients meet evolving security standards and regulations?
✅ Cyber Insurance & Liability: What should MSPs be thinking about in terms of coverage and legal protections?

✅ Growth from Referrals: What are Centers of Influence and why do they make for the best referrals?
✅ M&A Strategy: What role does M&A play in Synivate’s growth plan, and what challenges come with acquiring other MSPs?
✅ Supply Chain Security is a Key Risk: What are the biggest threats MSPs should be preparing for in the next few years?

✅ The Future of IT & AI: How is AI impacting the MSP landscape, and what does Sean see as the next big shift?

? Tune in to gain actionable insights on growing and scaling your MSP the right way!

#MSP #Cybersecurity #MergersAndAcquisitions #BusinessGrowth #Podcast #ITServices

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Sean Maguire on LinkedIn

 

From Bullfighter to COO: Driving Operating Profit

Written by Andy Mervis on . Posted in Business Valuation Insights, M&A Insights Podcast.

Listen to How Ethan Farlow is Taking the Bull by its Horns at ComTech to Drive Operating Profitability

In this episode, we dive into the inspiring journey of Ethan Farlow, COO at Comtech Network Solutions. From his early days assembling computers and a stint as a professional bullfighter to leading operations at his family-run IT services firm, Ethan shares how he’s cracking the whip to drive operating profitability. Learn how ComTech leverages data, automation, and client-centric strategies to streamline operations, negotiate with vendors, and scale sustainably. Packed with actionable insights on standardization, hiring best practices, and the future role of AI in MSPs, this conversation is a must-listen for anyone looking to optimize their business for growth and efficiency.

Topics discussed include:

  • Ethan Farlow and Comtech Solutions: A Family Legacy
  • Driving Efficiency Through Standardization
  • Leveraging Data for Vendor Negotiations – It’s All About Confidence
  • Key Performance Indicators That Matter – Time per Endpoint per Month!
  • Data-Driven Automation – Using Videos to Automate Workflows  
  • Best Practices for Hiring – How to Attract the Right People
  • Offshoring: Current Views and Future Plans – Keeping All Options Open
  • Cross-Selling and Upselling Through Data Analysis – Keep a Client Matrix 
  • Navigating the Future with AI – Mastering Unstructured Data
  • Advice for MSP Leaders – Know Your Cost to Push Price

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Reach out to Ethan Farlow on LinkedIn

 

Why 2025 Could be the Best Time to Sell your MSP

Written by Andy Mervis on . Posted in Industry & Market Trends, M&A Insights Podcast.

?️ Podcast Alert: Why Now is the Perfect Time to Sell Your MSP!

Are you an MSP owner in the $2M-$5M revenue range? Discover why 2025 might be your golden window to exit. In this episode, Madhur Duggar shares 4 key reasons to consider selling now:

1️⃣ Peak Market Conditions: Public and private market valuations are at all-time highs and good news is bad news.
2️⃣ Slowing Post-COVID Growth: Peak growth has occurred. IT demand is stabilizing, with increased competition on the horizon. The ratio of SMBs to MSPs is going to decrease.
3️⃣ The AI Revolution will favor larger MSPs with Industry Expertise: Clients need advice on how to use to AI to grow. Do you have industry expertise in their sector?
4️⃣ Buyer-Seller Imbalance: Too many sellers, too few buyers. Get out before the MSP exit tsunami gets here.

? Packed with insights, data, and real-world examples, this is a must-listen for MSP founders ready to make a strategic move.

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

 

MSP Builder Unplugged: Turning Alerts into Opps

Written by Andy Mervis on . Posted in M&A Insights Podcast.

And Chaos into Control with Guy Baroan and Glenn Barnas

In this episode of M&A Insights, we dive deep into the transformative power of automation for Managed Service Providers (MSPs) with the team behind MSP Builder. Discover how their innovative solutions help MSPs save time, reduce costs, and streamline operations. From tackling alert fatigue to boosting ROI through intelligent automation, we explore how MSP Builder is redefining success for MSPs of all sizes. Whether you’re a seasoned professional or new to the MSP landscape, this episode is packed with actionable insights and forward-thinking strategies.

Questions Covered in the Episode:

  1. What inspired the creation of MSP Builder, and how did it all begin?
  2. What makes MSP Builder unique in the crowded MSP tools market?
  3. How does MSP Builder tackle common challenges like alert overload and patch management?
  4. What role does MSP Builder play in simplifying RMM migrations?
  5. How does MSP Builder deliver a measurable ROI for MSPs?
  6. What trends and advancements in automation are shaping the MSP industry’s future?
  7. What advice would you give to MSPs implementing RMM platforms today?
  8. What risks or challenges do you think the MSP sector is underestimating for the future?

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio2.sg.brads.dev

Learn more about MSP Builder at www.mspbuilder.com