M&A Knowledge for the IT Services Business Community.

Private Equity Changes in the MSP/CSP World for 2019?

Private Equity (PE) has been landing platforms regularly in the MSP/CSP space for several years now with many platform transactions happening in 2018. Most PEs lowered their general size/cash flow standards of platforms to pick up much desired recurring revenue that comes from the typically much smaller companies that make up the MSP/CSP space. Many have well-funded coffers and bank relationships providing relatively cheap money. That said, rates are creeping up and PEs are getting wiser to what they need and what they can pay for it. It seems any new platforms that may happen, in what looks like will be a less robust platform market, will have tighter and more scrutinized deals being made.

Many PE transactions in this space will be geared upon growing the already established platforms as they push efficiencies and organic growth within the platforms. Pundits are seeing very similar things as we are among PEs including those who are Cogent Clients. Read further here on CHANNELe2e.

Share This Post.

News & Events Menu

Recent Posts

Scroll to Top