The world of M&A in the MSP space is always evolving. Economic shifts, interest rates, and market demand all play a role, but one thing is certain—the MSP channel is resilient.
I recently sat down with three industry powerhouses—Arlin Sorensen, Rob Stephenson, and Christopher Vollmond-Carstens—for a special episode of Sunny’s Silver Linings to dive deep into the current M&A landscape, the biggest challenges, and what makes an acquisition truly successful.
The Channel Is Strong—But the Game Is Changing
One big takeaway from our conversation: the demand for MSP acquisitions is still high, but the way deals are being approached has shifted.
Arlin put it perfectly: “Due diligence is going up. People can’t afford to make mistakes, so they’re being very careful and cautious to turn over all the rocks.”
Christopher echoed that sentiment, pointing out that while we’re not at the peak levels of 2021-2022, M&A activity is still busier than last year. Despite high interest rates, deals are happening across MSPs of all sizes.
Rob brought in another critical perspective. The impact of rising interest rates is most noticeable in larger deals—MSPs with $50M+ in revenue and strong EBITDA margins. “When money costs 4-5% and suddenly you’re borrowing at 8-11%, it changes the way you can pay on a multiple.”
But for MSPs with EBITDA under $5M? It’s business as usual. Buyers are still out there, looking for the right opportunities.
What Makes a Successful MSP Acquisition?
For MSPs looking to grow through acquisitions, it all comes down to cultural alignment.
Arlin laid it out clearly: Profitability is key. You can build the best culture in the world, but if your business isn’t consistently profitable, buyers won’t be interested. He also stressed that the real challenge isn’t just acquiring a company—it’s integrating teams, processes, and cultures successfully.
Rob summed it up in one sentence: “It’s all about good people.” Numbers matter, but a great business is built on strong leadership, solid teams, and a shared vision.
Christopher reaffirmed that strategic alignment is everything. “It’s not just a financial contract. Does this acquisition fit into your long-term vision? Does it align with your culture and how you develop talent? If it does, your chances of success go way up.”
Lessons for MSP Entrepreneurs: Plan Your Exit Strategy
As we progressed into the conversation, Rob made a valid point: One of the most important questions for any MSP owner is: Are you building a lifestyle business,? oOr are you preparing for an eventual exit?
He further added: if you’re planning to exit in the next three years, you need to get clear on your priorities. Are you looking to maximize valuation? Ensure your employees have a great future? Find a strategic partner to help you scale?
And here’s something many MSPs don’t always consider;: you don’t have to sell outright. Rolling a portion of your proceeds into stock in a strong platform can sometimes grow your investment faster than going it alone.
Christopher said that consulting an M&A advisor is a smart move to understand your valuation and options. “The right private equity partner can accelerate your growth, striking the right balance between financial security today and long-term wealth creation.”
Relationships Drive Success
It was an insightful conversation I had with all of them. Arlin aptly wrapped up our conversation with a powerful reminder: At the end of the day, business is about relationships.
I couldn’t agree more. I strongly believe that your network is your net worth. It’s not just about the technology you offer or the services you provide. If you want to grow—whether through M&A or organic expansion—you must invest in relationships. With your team. With your customers. With your vendors and partners.
And in an industry built on trust, those relationships can make or break an acquisition.
My Takeaways
The M&A landscape in our industry is evolving. Buyers are more cautious, interest rates are reshaping deal structures, and integration remains the biggest challenge.
If you’re looking to grow through acquisitions—or preparing for your own exit—here’s what you need to focus on:
✅ Profitability and sustainable growth.
✅ Strong leadership teams and company culture.
✅ A clear strategy for integration and long-term success.
✅ Planning your exit well in advance and exploring all options.
I hope this served as a powerful reminder for everyone reading this: If one needs to thrive in the MSP space, one needs to stay on top of the MSP landscape. Cultivating healthy relationships with all stakeholders is the key to making impossible deals possible!
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