KBS - Managed Service Providers - Market Insight

WHAT TYPES OF BUSINESS ARE STRATEGIC ACQUIRERS PURSUING?

UK-based MSPS are looking to strategically acquire companies that can help them expand market presence, diversify their service offerings, and strengthen their technical expertise. Ideal acquisition targets include those with niche capabilities, a robust customer base, strong growth metrics, and alignment with emerging tech trends.

+ NICHE SERVICE PROVIDERS

+ HIGH-GROWTH & HIGH-MARGINS Companies with a proven track record of fast growth or those serving high-demand sectors are especially attractive.

Those with a highly specialised service offering who can bring specific, niche expertise and a strategically beneficial client base.

+ HOLDERS OF PROPRIETARY TECH/IP + SME-FOCUSED PROVIDERS Businesses with proprietary software, processes, or intellectual property that can provide a competitive advantage are highly valued. Many acquisitions focus on MSPs with a strong presence amongst SMEs who often require ongoing IT support and provide a stable, recurring revenue stream.

+ STRONG RETENTION RATES

+ THOSE IN NEW MARKETS

Strategic acquirers value companies with long-standing client bases who provide predictable income and often offer opportunities to upsell or cross-sell additional services.

Companies that provide access to new regions or market segments are ideal for expansion-focused MSPs. A local presence or relationships in underserved areas can be a significant asset.

In recent years, trade consolidators’ interest

in acquiring MSPs has been driven by the need for scale, wider expertise, and a stronger market position in this highly competitive and continually evolving market