M&A Advisors to the Top Managed Service Providers

Overview

FOCUS’ Managed Service Provider (MSP) Team is one of the most active and successful in North America.

In 2020 alone, FOCUS closed MSP transactions with 22 parties including serving as advisor to 5 of the 10 MSP private equity platforms that were created in America as announced by Channel E2E.

Photo: Abe Garver

Abe Garver

Managing Director and MSP Team Leader
646-620-6317

Services

FOCUS’ MSP Team executes on a customized strategy tailored to meet each client’s objectives. We work with equal ease on the sell-side and the buy-side, bringing deep industry expertise and years of transaction experience to every engagement.

Sell Side Services

Working closely with senior management, FOCUS positions its client in the market to highlight strengths and attract optimal valuations. FOCUS bankers will discreetly contact only selected qualified buyers in order to maximize price, improve terms, and quickly complete the M&A transaction.

  • We are the catalyst for preemptive offers between large strategic buyers and first generation private equity-backed MSP platforms (formed between 2014-2020)
  • We are a catalyst for private equity groups making their initial investments into Top 25 ranked founder-owned MSPs with $2 – $10 million in EBITDA
  • We help MSPs decide whether to accept an unsolicited offer, and when necessary introduce alternatives

Buy Side Services

  • We help strategic buyers and middle market private equity groups acquire first generation private equity-backed MSP platforms (formed between 2014-2020)
  • We help lower-middle market private equity groups make their first platform investment
  • We help MSP platforms find ‘off-market’ targets in the $1 – $30 million EBITDA range

Testimonials

GI Engaged FOCUS on the Sell-Side to Help it Become a PE-backed Platform

Photo: Mohit 'Mo' Vij

Mohit ‘Mo’ Vij, Founder/CEO, General Informatics, a portfolio company of Rosewood Private Investments

I hired FOCUS’ MSP Team on May 28, 2020. In the first 24 hours after signing the engagement letter, Abe presented me with three (3) preemptive offers & introduced me via Teams to four (4) of the top MSP investors in the country.

Forty days later I signed an LOI with Rosewood Private Investments (RPI) and we closed the transaction on October 28. We plan to work with FOCUS in 2021 to find bolt-on opportunities for the Platform.

I recommend FOCUS’ MSP Team and will serve as a reference.

ICS Engaged FOCUS on the Sell-Side to Help it Become a PE-backed Platform

Photo: Kevin Blake

Kevin Blake, Founder/President, ICS, a portfolio company of ClearLight Partners, LLC

FOCUS’ MSP team has been extremely helpful in assisting us to our M&A growth goals.

Abe has really made an investment to understand our industry and assist either from the buy or sell side with all aspects of a transaction.

I highly recommend working with FOCUS.

Engaged FOCUS on the Sell-Side

Photo: Jim Kennedy, CEO The Network Support Co.

Jim Kennedy, Founder & CEO, Network Support Co., a portfolio of company of The Riverside Co.

In all my years in business I have never experienced this uniquely powerful combination of customer centric focus, deep industry and financial knowledge, availability, integrity, likeability, and selflessness.

With them negotiating the deal I was able to get a price almost (redacted)% higher than I thought likely, and with a buyer who is a great cultural fit.

I could not have chosen a better partner than Abe and his team at FOCUS Investment Banking.

Engaged FOCUS on the Sell-Side

Photo: Steven Cariglio

Steven Cariglio, CEO, Akuity Technologies, a portfolio company of ClearLight Partners, LLC

I received three (3) unsolicited letters of intent to acquire my company in Q3 of 2020, and after 32 years in the business was at a crossroads on whether it was the right time to sell. During this period I developed a relationship with Abe and the team at FOCUS.

When their buy side client stepped away, FOCUS’ MSP Team immediately shared eight (8) bolt-on and nine (9) merger-of-equal ideas with me. They then asked for an opportunity to introduce me to their top pick, which they believed was a perfect cultural and financial fit, and I agreed. Within seven days of meeting FOCUS’ top pick, I hired FOCUS to represent me, and signed a letter of intent with the acquirer. With guidance and counsel from FOCUS we closed the transaction in just over three (3) months.

FOCUS’ MSP Team was sensitive to my history with the company and did a great deal to educate me on the acquisition process. I am very impressed with their knowledge, transparency and connections in the MSP marketplace. I recommend FOCUS’ MSP Team, and will serve as a reference.

Cantey Technology Engaged FOCUS on the Sell-Side to Help It Become a PE-backed Platform

Photo: Willis Cantey

Willis Cantey, Founder/CEO Cantey Tech Consulting

I hired FOCUS’ MSP Team on March 15, 2021.

17 days later I signed a letter of intent (LOI) with LNC Partners, who I found to be a fantastic cultural, strategic, geographic, and financial fit for our team after evaluating multiple investor groups.  We closed the transaction 3 months later and I am already actively working with FOCUS to find the right companies to join our growing Platform.

I cannot speak highly enough about FOCUS’ MSP Team. I will happily serve as a reference any time.

* Testimonials may not be representative of the experience of all clients; testimonials are not a guarantee of future performance or success.

FOCUS MSP Team & Clients in the News

Thought Leadership & Publications

FOCUS Investment Banking Represents Golden Tech in its Sale to The Purple Guys

FOCUS Investment Banking Represents Golden Tech in its Sale to The Purple Guys

Washington, DC, (October 20, 2022) – FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture, and corporate finance services, announced today that Golden Tech, a Valparaiso, Indiana-based IT managed services provider, has been acquired by Kian Capital-backed The Purple Guys, a leading provider of managed IT services to small-… Read more »

Download the ITS-Tower Arch Capital Case Study

ITS Case Study

Intelligent Technical Solutions (“ITS”), a leading IT managed services provider (MSP), has been acquired by Tower Arch Capital. FOCUS served as catalyst for the deal with Tower Arch Capital and exclusive financial advisor to ITS. This case study highlights the unique process of this transaction.

Can MSP deals stand up to higher interest rates?

Can MSP deals stand up to higher interest rates?

There is some angst out there as the Federal Reserve raises interest rates, which is intended to slow the economy and could impact corporate earnings. Yet at the same time, there has been a flood of large private equity groups that are still eager to buy MSP platforms.

Intelligent Technical Solutions, Inc. and Tower Arch Capital

FOCUS Investment Banking Represents ITS in its Sale to Tower Arch Capital

Washington, DC, (July 19, 2022) – FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture and corporate finance services, announced today that Intelligent Technical Solutions (“ITS”), a leading IT managed services provider (MSP), has been acquired by Tower Arch Capital. FOCUS served as catalyst for the deal with Tower Arch Capital and exclusive financial advisor to ITS. Financial terms of the deal were not disclosed.

FOCUS Case Study - DSM

DSM Case Study

DSM, a Florida-based managed service provider (MSP) that supports state, local, and education government agencies, has been acquired by Thrive, the next-gen MSP backed by private equity firm, Court Square Capital Partners. This case study highlights the unique process of this transaction.

DSM and Thrive

FOCUS Investment Banking Represents DSM in its Sale to Thrive

Washington, DC, (July 11, 2022) – FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture and corporate finance services, announced today that DSM, a Florida-based managed service provider (MSP) that supports state, local, and education (SLED) government agencies, has been acquired by Thrive, the next-gen MSP backed by private equity firm, Court Square Capital Partners. FOCUS served as catalyst for the deal with Thrive, and exclusive financial advisor to DSM. Financial terms of the deal were not disclosed.

Lighthouse Technology Partners Case Study

Lighthouse Technology Partners Case Study

Lighthouse Technology Partners has been acquired by Coretelligent, a mid-market managed service provider (MSP) backed by private equity firm Norwest Equity Partners (NEP). This case study highlights the unique process of this transaction.

General Informatics and Unicom Case Study

General Informatics and Unicom Case Study

General Informatics (“GI”), an IT managed services provider (MSP) and network infrastructure company, has acquired Unicom Technologies, a Texas-based MSP focusing on the banking, credit union, and financial services industries, among others. This case study highlights the unique process of this transaction.

General Informatics and CMS Case Study

General Informatics and CMS Case Study

General Informatics (“GI”), an IT managed services provider and network infrastructure company and a portfolio company of Rosewood Private Investments (“RPI”), has acquired CMS IP Technologies (“CMS”), a leading managed IT provider. This case study highlights the unique process of this transaction.

Versiant Case Study

Versiant Case Study

Versiant, a North Carolina-based IT managed service provider (“MSP”), has been acquired by fellow MSP General Informatics, a portfolio company of Rosewood Private Investments. This case study highlights the unique process of this transaction.

CyberSheath Services Case Study

CyberSheath Services Case Study

CyberSheath, the largest Cybersecurity Maturity Model Certification (CMMC) managed service vendor for Department of Defense (DoD) contractors, has received an investment from Lightview Capital to expand its ability to secure the Defense Industrial Base (DIB). This case study highlights the unique process of this transaction.

Lighthouse and Coretelligent

FOCUS Investment Banking Represents Lighthouse Technology Partners in its Sale to Coretelligent

Washington, DC, (June 14, 2022) – FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture and corporate finance services, announced today that Lighthouse Technology Partners has been acquired by Coretelligent, a mid-market managed service provider (MSP) backed by private equity firm Norwest Equity Partners (NEP). FOCUS served as catalyst for the deal with Coretelligent, and exclusive financial advisor to Lighthouse Technology Partners. Financial terms of the deal were not disclosed.

FOCUS Investment Banking Represents Accelerate, Inc., in its Sale to The Purple Guys

FOCUS Investment Banking Represents Accelerate, Inc., in its Sale to The Purple Guys

FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture and corporate finance services, announced today that Accelerate, Inc., an Indianapolis-based IT managed services provider, has been acquired by The Purple Guys, a leading provider of managed IT services to small and mid-sized organizations. FOCUS represented Accelerate in this transaction.

General Informatics and CMS IP Technologies

FOCUS Investment Banking Represents General Informatics in its Acquisition of CMS IP Technologies

Washington, DC, (February 22, 2022) – FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture, and corporate finance services, announced today that General Informatics (“GI”), an IT managed services provider and network infrastructure company and a portfolio company of Rosewood Private Investments (“RPI”), has acquired CMS IP Technologies (“CMS”), a leading managed IT provider. FOCUS advised GI in this transaction.

Accelerating the Path to Managed Cybersecurity with M&A

Accelerating the Path to Managed Cybersecurity with M&A

Developing a robust managed security offering is a natural way for an MSP to grow. In addition to being a differentiator and one-stop shop for both support and security in the eyes of customers and prospective clients alike, tapping into the managed security market provides access to new, fast-growing revenue streams.

General Informatics and Unicom

FOCUS Investment Banking Represents General Informatics in its Acquisition of Unicom Technologies

Washington, DC, (December 22, 2021) – FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture, and corporate finance services, announced today that General Informatics (“GI”), an IT managed services provider (MSP) and network infrastructure company, has acquired Unicom Technologies, a Texas-based MSP focusing on the banking, credit union, and… Read more »

Cybersheath and Lightview Capital

FOCUS Investment Banking Represents CyberSheath in its Investment from Lightview Capital

Washington, DC, (December 21, 2021) – FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture, and corporate finance services, announced today that CyberSheath, the largest Cybersecurity Maturity Model Certification (CMMC) managed service vendor for Department of Defense (DoD) contractors, has received an investment from Lightview Capital to expand its ability to secure the Defense Industrial Base (DIB). FOCUS advised CyberSheath in this transaction.

FOCUS Managed Service Providers

FOCUS Managed Service Providers

FOCUS’ MSP Team executes on a customized strategy tailored to meet each client’s objectives. We work with equal ease on the sell-side and the buy-side, bringing deep industry expertise and years of transaction experience to every engagement.

Videos

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Using M&A with Peers to Attract Private Equity
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What is a PE-Backed MSP Platform?
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Valuations of Vertical Specific, as Opposed to Industry Agnostic MSPs