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Managed Service Providers: Part 2

As we discussed in the previous blog, there is a growing trend of small and medium-sized businesses outsourcing their IT functions to Managed Service Providers, or MSPs, for reasons of cost, time efficiency and technology support and expertise. While the MSP sector is large, highly profitable and growing rapidly, it’s also highly fragmented, with more than 20,000 companies in North America offering a wide variety of IT services. That creates M&A opportunities for MSPs looking to expand their menu of services, increase market share and diversify revenue streams.

Managed Service Providers: Part 1

Graphic: Managed Service Providers 1

Small and medium-sized businesses (SMBs) have historically relied on in-house IT support, but there is an emerging trend of these companies outsourcing their IT functions to Managed Service Providers, or MSPs. The MSP sector is large, highly profitable and growing rapidly, with the market expected to reach more than $300 billion in five years.

However, …

Don’t Fear Private Equity: Misperceptions Overlook Positive Impact

Over the course of my career, I’ve been involved in a lot of different roles, from technician to general manager, to owner and operator of multiple shops, then as a seller when our company was acquired by a large consolidator in 2015, and as a representative and consultant assisting with both sales and acquisitions of collision repair businesses.

FOCUS Investment Banker Michael McGregor Discusses Tire Dealership M&A

In the wake of COVID-19, you might be wondering if merger and acquisition (M&A) activities at the tire dealership level have kicked the bucket. According to MTD research, rumors of that demise have been overstated. Just compare last year's MTD Top 100 list of the biggest independent tire dealerships in the United States to this year's MTD 100.
multiple 100 dollar bills stacked on top of one another

A2Z Manufacturing: Is This the Competitor You Should Really Be Worrying About?

Merger and acquisition activity has accelerated in the precision machining industry due to the confluence of three fundamental technological and market forces.
  • Large capital inflows from private equity funds
  • Automated, digital manufacturing processes
  • Digital integration of the supply chain
The capital required to simply stay competitive is likely to soon leave a substantial portion of the industry field behind. The average firm owner may not yet have felt a serious impact, but complacency about the changes underway will threaten the competitive position of many industry participants and can have a serious impact on the equity they have taken years to build. Owners must recognize and confront pro-actively the building pressures for exploring a non-organic growth model. 
businessmen using smart devices with an illustration of app icons displayed over the image

The Future of Independent Precision Machining

Made in America! That’s the watchword of our precision machining industry, which is enjoying a major upturn driven by the need for ever more sophisticated components required to support new technologies in manufacturing, automation, life sciences, aerospace and defense. Most shops we visit report good revenue growth and many see more new business opportunities than …

Photo: The Endless Summer of M&A - Surfers

The Endless Summer of M&A?

Over fifty years ago in the late 1960’s filmmaker Bruce Brown gave us his cult classic surfer documentary The Endless Summer. The film chronicles the journey of two young professional surfers who circumnavigate the globe chasing summer through both the northern and southern hemispheres in search of the elusive “perfect wave.”

As we enter the summer of 2019, the comparison to the M&A market today seems appropriate. Are we in the “endless summer” of super charged M&A activity and valuations? We have been experiencing an almost unseen level of M&A activity over the past four years and one can’t help but ask….when (not if) will it end?

Graphic: Expanding the Climate for Middle Market M&A Success in 2019

Expanding the Climate for Middle Market M&A Success in 2019

As many FOCUS colleagues know, the firm celebrated its third consecutive record-breaking year in 2018, closing 28 deals across 10 industry segments. As we approach the first half of 2019, we continue to demonstrate our proven expertise, both across the wide range of sectors we cover, and in the depth of strategic services we deliver on behalf of our clients. Plus, first quarter 2019 results prove dealmakers see plenty of solid reasons for optimism for the remaining three quarters.