In this edition of Founder’s Managed IT Services Q2 2023 Update, our team provides valuable insights from the marketplace based on the second quarter. While there has been an overall reduction in M&A activity due to macroeconomic uncertainty since 2021, there are still ample opportunities for owners to take chips off of the table. MSP and IT Services M&A during Q2 remained in line with volume seen the first three months of the year. 169 M&A transactions were closed in the MSP and IT Services sector during the second quarter in North America, just one fewer than in Q1. Of these transactions, there was an even split between buyer types with ~49% being Financial / Private Equity buyers and ~51% being Strategic acquirers.
Our update also includes:
- Details on recent transaction volume and valuation trends
- “Working Capital in MSP Transactions & Why it Matters”
- Overview of upcoming events
- Our proprietary Valuation Driver Matrix
- Key buyer activity
- An invitation to take our Investment Grade Assessment (use Discount Code Q123ITS)
As we continue to plow through 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.