Mark Osborne explains how MSPs create a paradox: by making clients more profitable, they become acquisition targets and leave. He discusses exit planning over 3-5 years and strategies like maintaining a strong sales pipeline to reduce churn.
I think there are 2 different aspects there. So one is with your clients getting potentially acquired. We are seeing a lot of M&A activity really across all industries and the way we're seeing it, the MSP space is hot and ripe for acquisition. It's been going on for some years now, but we're seeing a lot of their clients, our members, they're having churn due to that. Wow. And it's kind of, it's a double-edged sword because you're getting involved, I mean, as a technology partner or provider, And they're helping them leverage technology to be more profitable and more competitive and making themselves and those owners of those companies achieve their goals, which their goals could be a potential exit. So it's almost like you're teeing them up to be acquired. And we're doing the same thing with our members. Like if they want to exit in 3 to 5 years and we're going to help them achieve that goal, then our clients churn as well. I think to combat that, a couple of thoughts. One is ultimately that you have a strong sales pipeline, right?
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