Spotlight

An archive of past spotlight issues.

 

The martinwolf team tracks noteworthy mergers and acquisitions, and offers
commentary on issues that impact our industry. Here is an archive of past

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"Something clicked in May and we saw a rush of PE firms asking us about MSPs and MSSPs."

Surge in Private Equity Demand for Managed Service Providers

Demand for Managed Service Providers (MSPs) and Managed Security Service Providers (MSSPs) has surged to new highs as Private Equity (PE) firms continue to be attracted to the recurring revenue model.

 

Tim Mueller President martinwolf

martinwolf President Tim Mueller was cited in Karishma Vanjani’s article on PE Hub regarding the unprecedented rise in PE demand for MSPs and MSSPs. Mueller explains that the addition of security services to an MSP’s portfolio can grow recurring revenue to over 80 percent—a fact that has driven significant interest among buyers across the martinwolf and IT ExchangeNet network.

 

Deal multiples for MSPs and MSSPs continueto increase as some firms with significant recurring revenue are seeing multiples above 10x their 12-month adjusted EBITDA.

 

“Something clicked in May (2020) and we saw a rush of PE firms asking us about MSPs and MSSPs. Our email inbox just started blowing up; we asked each other ‘are you seeing what we are seeing?’” Mueller added.

 

Vanjani’s piece highlights the “dizzying rate” in which PE firms are acquiring MSPs and MSSPs. Read the full piece here, and if you have any questions about what this means for your business,contact Colin Riley.

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24 Jan 2022

Tailwind Capital Sells AST Corp. to Recognize Partners

Financial Information ($USD) Not Disclosed  Transaction Details Tailwind Capital today announced it has completed its sale of AST Corporation to Recognize Partners, a technology services focused investment platform. Financial information was not disclosed. AST, a leading cloud and digital transformation solutions provider, simultaneously announced the deal, categorizing it as a strategic investment by Recognize to enable AST to accelerate investment in innovation,...

03 Jan 2022

Office Depot Sells CompuCom Systems

 Financial Information ($USD) Transaction Value: ~ $305 million Enterprise Value: $1.72 billion EV/LTM Revenue: 0.19x EV/LTM EBITDA: 3.85x  Transaction Details The ODP Corporation (NASDAQ: ODP) announced that it has sold its CompuCom Systems subsidiary to an affiliate of Variant Equity in a transaction valued up to $305 million. The transaction consideration of up to $305 million consists...

29 Dec 2021

Happy Holidays – The 2021 martinwolf Annual Letter

Dear Clients, Partners, and Friends of martinwolf M&A Advisors,   I hope you all are having an enjoyable holiday season with family and friends.   It’s been my tradition in this annual end-of-year letter to spend time reflecting on the past year, and to look forward to what the next year holds for us. We have plenty...