Managed IT Services Update: Q1 2023

By Founders Tech Team

May 18 2023

In this edition of Founder’s Managed IT Services Q1 2023 Update, our team provides valuable insights from the marketplace based on the first quarter. Despite the continued broader macro noise and uncertainty associated with interest rate increases, banking failures, geopolitical conflict, etc., MSP and IT Services M&A remained steady during 2023 Q1. Roughly 170 M&A transactions were closed in the MSP and IT Services sector during first quarter in North America. Of these transactions, there was a strong mix of buyer types, with ~54% being Financial buyers and ~46% being Strategic acquirers.

Our update also includes:

  1. Details on recent transaction volume and valuation trends
  2. “What To Do When Private Equity Calls and Emails”
  3. Recap of Founders’ 20th Anniversary Celebration
  4. Our proprietary Valuation Driver Matrix
  5. Operating Metrics to benchmark Network Essentials against
  6. An invitation to take our Investment Grade Assessment (use Discount Code Q123ITS)

As we plow forward into 2023, Founders remains focused on helping founder-owned and led businesses achieve their goals, whether that is to exit completely, take some chips off the table, or raise capital to accelerate growth.

If you are considering a transaction of some sort soon, please reach out to Chris Weingartner for insight into what investors and buyers are looking for, as well as how we uniquely position each business to maximize value, minimize the disruption to your daily business, and optimize the probability of a successful outcome.

Related Posts

How Important is Growth to SaaS Valuation?

Jul 09 2019

This is a guest article from William Short of Founders Advisors. We hope you enjoy it! There have been several studies of the public markets and valuation drivers, all of which typically show a strong correlation between EV/Revenue and revenue growth.  In its 2017 Software Outlook, Credit Suisse finds that revenue growth has the strongest […]

Read More…

What to Expect When You Are Expecting SaaS Due Diligence

Apr 18 2019

If you’re expecting to give birth to a deal in SaaS, you’re expecting due diligence. And if you haven’t been through it before, SaaS due diligence may be more burdensome than you might think. Then again, maybe it will be less onerous than you’re expecting. I seriously doubt the latter, but anything is possible. Your […]

Read More…

“Strategic Combinations”: A Hybrid Deal Structure

Apr 06 2023

By: Billy Pritchard As founders begin to consider various capital transactions for their business, they are often focused on two primary deal structures:  1) selling 100% of the business to a strategic buyer, or 2) partnering with a private equity firm through a recapitalization. Depending on the personal objectives of the founders, as well as […]

Read More…