MSP vs. MSSP Acquisition Market Differences: A Closer Look
Recently, at the MSSP Alert Live 2024 conference, ChannelE2E Editorial Director Jessica C. Davis and Rick Murphy from Cogent Growth Partners had a chat about mergers and acquisitions in the tech industry. They delved into how the market differs for Managed Service Providers (MSPs) versus Managed Security Service Providers (MSSPs).
Rick Murphy, an expert in advising service providers on M&A deals, shared valuable insights at the event in Austin, Texas. He discussed MSSP valuations, the unique structures of MSSPs compared to MSPs, and why deals can range from acquiring a book of business to talent acquisitions.
During the discussion, they highlighted key differences between MSPs and MSSPs in terms of contract lengths, types of acquisitions (book of business versus talent), and whether acquirers prefer one over the other. Interestingly, the conversation also touched on how some MSSPs are considering buying MSPs, emphasizing the importance of aligning customer sizes for successful deals.
For a detailed look at their conversation and more insights, be sure to watch the full video interview with Rick Murphy from the MSSP Alert Live conference.
Overall, understanding the distinctions between MSPs and MSSPs in the mergers and acquisitions space can provide valuable insights for industry professionals looking to navigate this dynamic market.
