What approach works best for transforming the MSP landscape? Find out below!
In the fast-paced world of managed service providers (MSPs), there are a few entrepreneurs who have truly stood out and made a significant impact on the industry. One such trailblazer is Ramsey, a thought leader and serial entrepreneur who has been rethinking the MSP landscape and changing the game. In a recent conversation, Ramsey shared his journey and shed light on his innovative approach with Evergreen, a company that is revolutionizing the MSP industry.
Ramsey’s career began in private equity at Alpine Investors, a people-oriented firm focused on growing businesses for investment returns. It was during this time that he discovered the MSP space and witnessed a shift towards proactive managed services and the monthly recurring revenue model. Intrigued by these changes, Ramsey and his team acquired Wolf Consulting, an MSP that was a member of HTG (now IT Nation Evolve). This marked the beginning of their journey in the MSP industry.
Since then, Evergreen has acquired over 60 MSPs, establishing itself as a leader in the market. What sets Evergreen apart from traditional private equity models is its commitment to buying and holding businesses, rather than buying with the intention to resell in a few years. This long-term approach allows MSPs to maintain their independence and continue operating under their original brand and service delivery model.
The decentralized operating model adopted by Evergreen is another distinguishing factor. Unlike many other companies that merge acquired businesses, Evergreen believes in preserving the entrepreneurial spirit of MSPs. The goal is to help MSPs be the best version of themselves by providing support and guidance while allowing them to maintain their autonomy. This approach has resonated with business owners who want to sell their companies but still see their legacy and vision thrive.
While private equity has provided new opportunities for MSP owners to monetize their businesses, there have been recent changes in the market. Rising interest rates have led to a cooling effect on valuation multiples, impacting the return on investments for investors. However, there is still ample capital in the private equity market, and business owners have multiple buyers to consider.
One of the most significant challenges faced by MSPs, both in Evergreen and the industry as a whole, is finding and retaining top talent. This holds true for both management positions and technical roles. To address this, Evergreen has invested in building a dedicated recruiting team and encourages MSPs to consider alternative talent strategies, such as outsourcing or hiring remote employees. The pandemic has only intensified the competition for talent, especially in certain markets where companies are willing to offer higher wages.
When it comes to acquiring MSPs, Evergreen looks for companies that are already performing well. They seek out MSPs with a revenue of over $5 million and a solid growth trajectory. The goal is to acquire good standalone businesses that can continue to thrive under the Evergreen umbrella.
In summary, Evergreen MSP’s unique approach to the industry has been making waves and providing MSP owners with new opportunities for growth and monetization. With a focus on long-term partnerships, independence, and talent development, Evergreen is transforming the way MSPs operate in an ever-evolving market.
Watch: Evergreen’s Unique Approach to Transforming the MSP Landscape
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“Sunny’s Silver Linings” is a top MSP channel podcast hosted by the CEO of IT By Design, Sunny Kaila. Sunny and his guests cover a wide range of MSP- and talent-based topics, including leadership, corporate culture, MSP services, cybersecurity, customer service, talent growth and retention, and strategies to achieve success in the channel. Listen now to take your business to the next level!
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About IT By Design
With more than two decades of experience as a technology services provider—first as an MSP, and then for MSPs—IT By Design (ITBD) helps clients navigate the volatile technical landscape. As the authority on MSP-trained technical talent, it understands the challenges its customers face when recruiting team members. ITBD addresses those issues through many solutions: dedicated staffing, 24x7x365 NOC services, helpdesk solutions, RMM virtual admin, vCIO consulting, security, employee and client engagement software, and professional services. ITBD is headquartered in New Jersey and has facilities in India and the Philippines.