Macroeconomics are affecting buyers (and some sellers).  However, many buyers still have access to plentiful amounts of capital, while levels of activity and expenditure are only slightly down from the levels of activity seen in 2022.  TechTarget recently reported that there’s been a dip in M&A activity since the second half of 2022 but is predicting a rebound in 2024 and beyond.  At iT Valuations, we’re seeing activity levels about the same as they were in 2022 with transactions wanting to close quicker than before to avoid fears around taxation and rising interest/borrowin ..read more

 As you continue to grow your IT services firm you may be considering the possibility of expanding through a merger or an acquisition.   Even though a merger or acquisition is one of the most unnatural acts in business, finding the right IT firm to merge with or acquire can be a game-changer, opening up new avenues of growth and enhancing your competitive edge.   Here are the top three strategies to finding other IT services firms to pursue.  Networking Inside of the IT Channel: Networking is a powerful tool for connecting with other professionals in the IT serv ..read more

When was the last time you attended a live event? Not a concert or an improv comedy show but a live business event with your peers and industry experts. We’re talking about people who might be more intelligent and experienced than you in your business. It takes a big person to admit they don’t know everything. Additionally, it’s been said that you won’t grow until you’re willing to push yourself towards the other side of fear. Two of our biggest fears are often putting ourselves out there and asking for help for many of us. You could be in the mindset that you don’t know what you’re doing, and ..read more

Are you ready to sell your IT company? You may have asked yourself the following:  When is the right time to sell?  What is my company worth?  How long does it take to sell?  Should I use a broker?  Linda Rose, Technology M&A Advisor and owner of RoseBiz, suggests considering it sooner than later.  “M&A activity is trending toward an all-time high in the technology space, and with the recent statistics pointing to over 40% of technology firm owners looking to retire in the next 7 years, maybe it is time to think about your own readiness to sell.”  ..read more

Imagine that you’ve made it through all four quarters of the game and you’re on the 1-yard line in selling your business. Then, out of nowhere, the opposing team’s defensive lineman hits you in the gut taking you down, while the rest of their team piles on top of you. You were so close. You didn’t even see them coming. How did this happen (and probably, ouch)?!   The scenario above is similar to what usually happens to most Managed IT Services Providers (MSPs) at some point during the process of selling their business. And it’s brutal.   However, after working with tech fir ..read more

Why is it that only a handful of businesses are significantly more profitable than others? It isn’t rocket science, yet some companies seem to be light years ahead of their peers. It can be frustrating thinking that you’re doing all the right things (streamlining your processes, reducing operational costs, providing best-in-class services), but then continuing to come up short. Seriously, what must a seller DO to be sought after and worth more in the marketplace?   The good news is that the solution is simple.   The bad news is that the answer takes work.   Howeve ..read more

Now is the time to finally get a handle on understanding your company’s financials and accounting. Listen, I get it. Most of us business owners did not go to school to start a business. Rather, we followed our interests and our passions, and then only later did we end up starting our own companies.   But this financial and accounting knowledge gap will come back to haunt you. Your lack of know-how can really hurt your ability to best portray your company’s value, especially when you’re looking to sell, buy, or merge a business. You’ll need to know how to “narrate” your business’s suc ..read more

Valuating your company is a complex and rigorous process that requires a certified expert.   If you’re an MSP or IT firm owner, it can be hard to know where to start and who to trust. The valuation process is intense, expensive, and unavoidable if you plan on ever selling or merging your business.   When you’ve spent that past 30-40 years, head down, running your business with your hands deep in the detail guts of it all, it’s important to have an experienced guide to help you pull back and take stock.   At some point, you’ll want to sell your business so you can move on to ..read more

Sales and Marketing should always be working towards the same goal: securing business and helping their technology firm grow. Candidly, this is probably one of the most challenging things for tech companies to master. Before we get into the subject of Sales and Marketing, you should know that Sales and Marketing impacts the value of your business by as much as 20%. So many companies leave real transaction dollars on the table because they have not invested in or really understand the value that effectives Sales and Marketing brings to the organization. But how they accomplish this differs sign ..read more

The journey of building a tech firm is filled with milestones. First hire (first fire). First big investment. First big client. However, what’s not often talked about is the milestone of making your first acquisition. I realized this as I helped navigate more than 60 merger and acquisition (M&A) transactions, over the last 20 years. Recognizing an acquisition opportunity is just the first step in what can be a long and complicated, yet extremely rewarding process. Just how long of a process will depend on the size of the companies involved, but there are always many moving parts. Many tech ..read more