Two M&A Panels, Six Takeaways
Last week at MSP SUMMIT, The 20 hosted two back-to-back panels that pulled back the curtain on one of the hottest topics in the managed services industry: mergers and acquisitions (M&A).
What It’s Really Like to Sell to The 20 featured former MSP owners who sold their companies to The 20: Kevin Peterson, Darren Fippin, Gary Blawat, and Lance Keltner. These MSP veterans were generous with their knowledge and experience, and left attendees with a much clearer picture of the M&A process – including, yes, what it’s really like to sell your MSP to The 20.
M&A Meets Monday: When Employees Get the Email focused on the employee experience. All four panelists – Bobby Falco, Madison Vestweber, Bradley Gaudioso, and Mia Demelo-Schmitt – came to The 20 via an acquisition. Their discussion shed light on what it’s like to go through an M&A deal as a team member – the uncertainty, the opportunity, and the very real human side of M&A that often gets overlooked.
Our own Crystal Conkle (CMO) served as moderator for both discussions, asking thoughtful, unfiltered questions and creating space for stories that were equal parts practical and personal.
In this post, we’re sharing six key takeaways from the two panel discussions. Whether you’re an MSP owner thinking of selling your company – or the employee of an MSP entering the M&A arena – you won’t find a more intimate look at what it’s really like to navigate an acquisition. Let’s dive right in!
Takeaway #1: Specialization Is Really Something Special
One of the most consistent benefits talked about in both panels was the opportunity to specialize after the acquisition. In smaller MSPs, both executives and team members tend to wear lots of hats. As Darren noted, “you need generalists.” But once you’re a part of The 20? You can finally hang up all those hats and take on a more specialized role.
The shift can be a drastic one: “There’s somebody who does that?!” – Mia, after learning she no longer had to juggle so many different responsibilities.
Bobby went from doing everything at his dad’s MSP to landing a role on The 20’s marketing team as a content writer. Bobby’s current role – and the level of focus it affords – just isn’t something that exists at smaller shops. Working for his dad, he’d write a blog here and a blog there. But being able to go ‘all in’ on his true passion? That was only possible after joining a big team like ours.
One underrated perk of specialization is the removal of constant learning curves. Gary succinctly described the benefit of having people in roles suited to their expertise: “We’re not learning – we’re doing.”
Takeaway #2: Change Is Scary. Expect That.
Getting acquired is emotional. It creates uncertainty. These are unavoidable realities, because, as Madison pointed out, “Inherently, people don’t like change.” Bradley piggybacked on this, admitting that “initially there was that shock.”
If you’re looking to sell your MSP, keep in mind that fear and skepticism from employees is natural – inevitable even. This isn’t to say there aren’t things you can do to mitigate the more negative reactions; just don’t expect total enthusiasm from the get-go – and tailor your tone and communications accordingly. Simply put, give your employees the space and grace to process the change.
That said, as the leader of an MSP, you’ll play a big role in something extremely important – the focus of our next takeaway…
Takeaway #3: Communication Is the Name of the Game
Communication, communication, communication – when it comes to pulling off a successful acquisition, communication is everything. Let’s look at some specific ways it helps.
Lance spoke about the connection between specialization and communication, and how he had to advocate for the job he wanted post-sale. He didn’t expect to land a role that allowed him to do everything he wanted (and nothing he didn’t) – “life doesn’t really work that way.” But in the end, life did work that way for Lance – all thanks to his speaking up clearly and consistently to his new manager.
Communication also plays a vital role in culture-building. Mia described the power of icebreakers and team bonding. The ‘segue question sessions’ she led post-deal allowed her and her new teammates to get vulnerable, lighthearted, and at times deep. This built the kind of trust that makes conflict resolution far easier when friction does arise.
The owner-led panel also touched on how communication fuels a vital dynamic within a larger organization like The 20: multi-lateral decision-making. When you sell your MSP, you go from being sole boss to being part of a bigger team where decisions are made collaboratively. But in order for this type of decision-making to occur, you need clear and open communication. Without that component, “multi-lateral decision-making” quickly turns into “multi-lateral confusion.”
At The 20, most of the MSPs we acquire already know each other through participation in our peer group. This makes the communication piece so much easier, and relates closely to our next key takeaway…
Takeaway #4: Trust Can’t Be Built Overnight
When change hits, trust is everything. And you can’t fake it. Employees are far more likely to embrace a transition if they trust their leadership before the deal is ever on the table.
Madison shared how she was nervous about the acquisition, but because her manager had never steered her wrong, she believed him when he said it would be a good move. Similarly, Bradley said he felt confident about the transition because his boss – a man he truly respected and trusted – had always spoken highly of The 20.
The same wisdom applies to MSP owners and their clients. Gary worried about his clients’ reactions leading up to the sale of his MSP business, only to be surprised by their support: one even asked, “How is this working out for you?” Trust, again, made all the difference.
And trust like that? It’s often years in the making.
Takeaway #5: The 20’s Deal Structure Is a Game-Changer for Smaller MSPs
Several former owners made it clear: you won’t find a better deal structure than ours if you’re a small-to-midsize MSP (in the < $5M annual revenue range).
Darren talked about how the absence of earnouts “made it a partnership deal.” He described the feeling of trust at the table – how selling to The 20, a company that had helped him achieve success as an MSP owner – felt like the next step in a collaborative journey. He wasn’t losing his business; he was moving it forward.
Gary echoed this sentiment: “Most organizations try to figure out how to reduce what they’re going to give you.” But that wasn’t his experience selling to The 20. Working with Tim Conkle (founder & CEO of The 20), the deal-making felt like an “easy conversation” centered around a single question: “How do we win together?”
Lance didn’t mince words, telling the MSPs in the room under $5M: “You’re not going to get a better deal for your MSP, period, end of story. I will bet my entire life savings on it.”
Takeaway #6: Ignore the Human Side at Your Own Peril
Acquisitions aren’t just about merging systems. They’re about bringing people together. They’re also deeply personal. As Kevin reminded us, “Your company is your baby.” Simply put, an M&A deal has a human side. Emotions run high, and managing those emotions is key. Relationships are key.
That’s where The 20 has a huge head start. Because most of the MSPs we acquire come up through our peer group, there’s already that foundation of trust we touched on earlier – and real familiarity. We’re not strangers trying to make a deal work; we’re colleagues stepping into a deeper partnership.
Kevin’s presence at SUMMIT was a perfect case in point. Though recently retired, he was thrilled to be invited back: “I love you guys.” That says it all. It also sheds light on why our post-deal attrition is typically less than 5%: the bonds are in place before any paperwork is signed.
Thinking of Selling Your MSP?
The best way to understand what makes The 20’s M&A model different is to talk with the man behind it all.
Book a 1-on-1 call with Tim Conkle to find out if selling to The 20 might be the right move for your MSP.
And don’t miss out on our next in-person event for growth-focused MSPs – VISION ’25, taking place this August in sunny Dallas, TX. Tickets go fast – lock in your spot today.