Episode description
In this episode of M&A Insights, host Madhur Duggar engages with Kyle Eichenbaum, VP of Corporate Development at VC3, a North American MSP leader. Kyle provides an in-depth look at VC3’s strategic approach to mergers and acquisitions, with insights drawn from their 14 acquisitions across the U.S. and Canada in the past three years.
The discussion begins with VC3’s history, highlighting its focus on local governments and municipalities as a key vertical and how this strategy shapes its acquisition and integration efforts. Kyle explains what sets VC3 apart from other MSP platforms, emphasizing its commitment to operational maturity, recurring revenue, and employee retention.
Key questions addressed in the podcast include:
- What distinguishes VC3’s acquisition strategy?
- How does VC3 evaluate MSPs for potential acquisition, particularly regarding customer concentration and recurring revenue?
- What are the challenges of integration post-acquisition, and how does VC3 manage them?
- How does VC3 balance acquiring stable but flat-growth businesses versus high-growth but lower-margin businesses?
- What advice does Kyle offer to smaller MSPs aiming for bolt-on acquisitions or preparing for an exit?
- How is AI transforming the MSP landscape, and what opportunities does it present?
Kyle also shares actionable advice for MSPs navigating the competitive M&A landscape, emphasizing the importance of new logo acquisition, understanding buyer expectations, and aligning operational processes with market demands. He concludes with reflections on the future of the MSP industry, touching on AI's role and the potential for increased regulation.
Tune in for a candid and insightful conversation about scaling success through strategic acquisitions and operational excellence.