Blog by Ben Greenberg, VP of Corporate Development at IT Solutions
If you’re considering exiting your business or are navigating the challenges of growing your MSP, we invite you to connect with Ben (Benjamin.Greenberg@itsolutions-inc.com).

The managed service provider (MSP) industry has been experiencing significant consolidation, with various players adopting different strategies. These strategies range from local to global acquisitions and from no integration to full integration of the acquired entities. Whether you’re a buyer or seller, choosing the right path depends on your goals, capabilities, and appetite for change. In this article, we’ll explore different integration strategies and what to consider when evaluating each.

Understanding M&A Roll-Up Strategies

• Local: Local roll-ups focus on acquiring MSPs within a specific geographic region. This approach allows for the consolidation of market share and driving economies of scale in a specific state or region.
• National or Multi-National: National or multi-national roll-ups involve acquiring MSPs across a country or multiple countries. They require a stronger centralized management team (even if not fully integrated) and more substantial financial backing than a local strategy.
• Vertical Focused: Vertical focused roll-ups target MSPs with expertise in specific verticals (e.g. legal, healthcare, finance, etc…). Strategies can be national or local in scope and often strengthen capabilities within a focus sector(s).

Levels of Integration: From Independent to Unified

• No Integration: At this level, the acquired MSPs continue to operate independently, maintaining their brand, systems, and processes. Buyers might choose not to integrate because of limited integration capabilities or lack of cultural fit between the organizations. While rare to see an MSP roll-up without any level of integration, it’s not unheard of.
• Partial Integration: Partial integration aligns certain aspects of the acquired MSPs, such as back-office functions (like finance or HR), while each MSP’s operations run completely independently. This approach can allow for a light centralized management team that ensures best practices are still being driven across the entities.
• Full Integration: Full integration merges the acquired MSPs into one company with a unified brand, systems, and processes. Although full integration is more complex and expensive, the benefits can be immense. In a full integration strategy, clients can still rely on local support while receiving enhanced capabilities. Career development opportunities become available for employees that were not available at the smaller MSP. Owners can minimize personal risk while stepping into a new role at a larger organization—or stepping away entirely after an agreed-upon transitionary period (I’ve seen this anywhere from three months to multiple years).

So, what’s the right strategy?

You probably saw this coming, but there is not one “right” strategy for MSP roll-ups; it depends. Buyers that attempt partial or full integration without a seasoned executive team and demonstrated growth engine, will most likely fail. However, with a strong management team, experience scaling a business, and a proven track record; a fully integrated strategy could open doors to maximize client value and give employees new opportunities that a non-integrated strategy can’t provide.

For sellers, it depends on your personal and business goals. If your main intent is to maintain your current role while taking some “chips off the table,” a no-integration, local buyer may be optimal. Conversely, sellers seeking a new challenge or planning an exit entirely in the near future, they might prefer partnering with a fully integrated organization.

The bottom line is that each buyer and seller should know their goals and consider all options before engaging in the M&A process. This helps narrow the field, aligning the right buyers and sellers to create opportunities for stronger partnerships early on.

---

Unlocking growth through M&A comes with unique opportunities and challenges. Whether planning your next acquisition or considering selling your business, we’re here to help your MSP thrive.