E228: Acquiring an IT MSP: Strategies, Overcoming Challenges, and Ensuring a Smooth Transition

Watch Here: https://youtu.be/Oiz8SmK_ZVsAbout the Guest: Nick Akers is the CEO of STL Communications, an IT managed service provider, with extensive experience in mergers and acquisitions. With a technical education and background in the specialty chemical sector, Nick has co-founded a venture capital-funded startup and worked with private equity firms as an independent sponsor. He recently acquired and now runs STL Communications. Summary: In this How2Exit podcast episode, host Ronald Skelton talks with Nick Akers about his journey in acquiring STL Communications. Nick shares his background, from co-founding a venture-backed startup to entering the M&A world. He recounts the processes, challenges, and strategies in purchasing an IT managed service provider.Nick explains his shift from a specialty chemical acquisition focus to an industry-agnostic approach, leading to the acquisition of STL Communications through a local broker. He discusses the transition period and his role in retaining and reassuring employees. The episode covers lessons learned, due diligence, customer relationship management, and successful business transition strategies, all highlighted with practical insights and real-world experiences. Key Takeaways:Pivoting Strategies: Nick's journey emphasizes the importance of adaptability in search strategies, pivoting from a highly specific industry focus to a broader, more flexible approach.Employee Retention: Post-acquisition, the significance of actively engaging with and reassuring employees is critical to maintaining morale and productivity.Customer Service Focus: Differentiating in a competitive market by prioritizing exceptional customer service over mere product offerings.Due Diligence Essentials: Understanding the nuances of customer contracts and securing reps and warrants on accounts receivable are crucial for protecting value in acquisitions.Ownership Models: Insights on weighing the benefits of self-funded searches versus structured programs like search funds, particularly focusing on control and long-term returns.--------------------------------------------------Contact Nick onLinkedin: https://www.linkedin.com/in/akersnick/--------------------------------------------------How2Exit Joins IT ExchangeNet's Channel Partner Network!Have an IT Company doing between $5M and $30M You may Sell?The IT ExchangeNet M&A Marketplace @Ronald Skelton - How2Exit Host has a proprietary database of 50,000+ global buyers seeking IT Services firms, MSPs, MSSPs, Software-as-a-Service platforms and channel partners in the Microsoft, Oracle, ServiceNow and Salesforce space.If you are interested in learning more about the process and current market valuations, complete the contact form and we’ll respond within one business day. Everything is kept confidential.https://www.itexchangenet.com/marketplace-how2exitOur partnership with IT ExchangeNet focuses on deals above $5M in value. If you are looking to buy or sell a tech business below the $5M mark, we recommend Flippa.--------------------------------------------------💰If you’d like additional ways to support this podcast, you can become a paid subscriber here: https://how2exit.substack.com/►Visit Our Website: https://www.how2exit.com/📧For Business Inquiries: [email protected]'t Forget to SUBSCRIBE to the How2Exit channel and press (🔔) to join the Notification Squad and stay updated with new uploads.✨👇🏻SUBSCRIBE HEREhttps://www.youtube.com/channel/UC_ONnhwaKSTPFt2nOxKoXXQ?sub_confirmation=1𝐖𝐚𝐧𝐭 𝐭𝐨 𝐬𝐞𝐞 𝐦𝐨𝐫𝐞 𝐜𝐨𝐧𝐭𝐞𝐧𝐭 𝐥𝐢𝐤𝐞 𝐭𝐡𝐢𝐬...?▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬👍 Like the video (it helps a ton!)💬 Comment below to share your opinion!🔗 Share the video with anyone you think might help :) ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬📱Stay Tuned On Our Social Media :» Linkedin - https://www.linkedin.com/in/ronskelton/» Twitter - https://twitter.com/ronaldskelton» Facebook - https://www.facebook.com/How2Exit» Newsletter - http://deeper.how2exit.com/🎬SUGGESTED VIDEOSDon't forget to watch 📽 Our other videos. Please check them out :▶️Previous Episode: E227: Connor Pera Discusses Journey to Acquisition Entrepreneurship and Growing The Print Authority - https://youtu.be/nt8joaIOv5s▶️E135: Sam Rosati On His Journey From Being A Lawyer To Becoming An Entrepreneur In The ETA Space - https://youtu.be/D2qJOidptRA▶️E100: CEO Of Flippa Blake Hutchison Discusses Innovations In Buying And Selling Digital Assets - https://youtu.be/R1D5guQU9Z0#How2Exit # # 💖Thanks for watching! 💖Become a supporter of this podcast: https://www.spreaker.com/podcast/how2exit-buy-don-t-build-m-a-of-small-businesses--4859429/support.