Do MSPs Have a Profitability Problem?

This blog post could be one word. Do MSPs have a profitability problem? Yes. But easy answers are rarely the best answers, and a closer look at the data reveals a more nuanced reality.

The truth is, most MSPs have a profitability problem; but some MSPs – best-in-class MSPs – do not. In fact, when it comes to profit, we see a pattern that shows up a lot in the MSP space: a marked gap between ‘the best’ and ‘the rest.’

Data from Service Leadership revealed that top MSPs averaged 23% profit while a whopping 31% lost money in Q1 of 2023. That’s almost a third of shops in the red. The same report found that MSPs have an average profit margin of 8%, compared to 18% for top-tier companies.

When you consider the fact that margins in other prominent service industries (e.g., legal and financial) hover around 30% – 35%, the above numbers hurt. But maybe this is the most painful stat of them all: 28% of MSPs aren’t profitable. The MSP space doesn’t have a profitability problem; we’ve got a cash flow crisis.

In this post, we’re looking at why – the reasons behind MSPs’ razor-thin margins. We want to help your MSP better understand the source of the problem, so you can take more effective steps toward solving it.

A Small but Important Caveat

Low margins aren’t always indicative of poor business health. For instance, MSPs in the early stages of their journeys are often focused on aggressively reinvesting earnings to fuel growth. This can be a sound strategy, even though it will likely hurt margins in the short term.

The lesson here is that you should always take into account where you’re at when assessing your MSP’s margins. Is profit low because you’re reinvesting in future growth – or because there’s something fundamentally broken in your business? Those are two very different situations, so make sure you’re paying attention to what’s going on behind the numbers.

Why Do MSPs Struggle with Profitability?

Why is profitability an industry-wide pain point for MSPs, but not law firms? IT services are no less crucial than legal support, no less expertise-based. So what’s going on?

The short answer? A lot of things are going on. MSPs with lower margins typically aren’t guilty of just one thing – some egregious misstep that accounts for all their struggles. It’s usually a combination of factors. Here are some of the most common ‘profit-killers’:

Costly Clients

Sometimes low margins can be traced to particular clients. Is your MSP tracking profitability by client? If not, start – even if it’s just with one client. If you end up discovering a client who’s not contributing ‘their share’ to your bottom line – or even costing you – consider cutting ties. That can be extremely difficult, but working with troublesome clients doesn’t just hurt your bottom line; it also drains resources, negatively impacting the service you provide other clients.

Of course, you’ll want to exercise judgment and see the big picture. Clients can go through periods of low profitability for good reasons (e.g., they’re still transitioning from legacy systems). And just as it can make sense to sacrifice short-term profit for long-term success, it can be a good idea to swallow costs for the sake of client development.

Underpricing

Letting go of a client is tough – but so is letting go of a potential client. This fear drives a lot of MSPs to offer low prices or special discounts. MSPs fighting over the same businesses can easily find themselves locked in a race to the bottom.

Underpricing can also stem from a poor understanding of the economy and market conditions. Some MSPs underprice because they’re simply not aware of what their competition charges. Others underprice because they are aware of their competitors’ rates, and choose to simply mimic them. But when others are systematically underpricing and you copy them, you end up underpricing too.

Poor Value Articulation

Underpricing is rooted in a deeper problem. Why are MSPs afraid of losing business if they raise prices? Why are MSPs so quick to lower prices for a prospect who’s looking for a ‘sweet deal’?

Often, these tendencies are symptoms of poor value articulation. When you don’t – or can’t – explain what makes your MSP’s services worth it, of course there will be anxiety around pricing.

Our advice? Become an expert at conveying the value your MSP adds. And get specific. Don’t just talk about keeping their IT running smoothly; highlight the costs of downtime versus the costs of your managed services. Don’t just talk about protecting their assets; compare the cost of a cyberattack to the cost of your cybersecurity expertise.

Articulating value is also easier when your MSP possesses highly specialized expertise. Get really good at one thing, and shine a light on that unique value. Why should clients pay amore for your services than for those of the MSP down the road? Because you understand their industry 10x as well as the generalist with lower pricing. That’s why.

Operational Inefficiencies

There are a number of inefficiencies that can eat away at your MSP’s margins. Let’s start with your techs. Are they wasting their time on routine tasks that could easily be automated? As Kaseya’s then-CEO Fred Voccola remarked in an interview last year, MSP “engineers are not leveraging automation in a full way. So the number of clients or endpoints that a technician or engineer can manage is 15–20% lower than what it should be.” We think this is spot on, and strongly encourage MSPs to explore boosting profitability by automating routine, mundane tasks out of technicians’ workflows.

We also recommend thoroughly reviewing your tools. Are they a well-integrated stack…or a redundancy-riddled mess? There’s ample overhead in managing a disparate stack, when each tool requires separate onboarding, training and maintenance. Simplify your stack to boost margins – even if it means abandoning that one tool you really love.

A Profitable Platform

As we’ve seen, there are a number of reasons for MSPs’ struggles with profitability – and that is itself a problem. When there are a whole host of profit-killers, it becomes difficult to tackle them all, and in an order that makes good business sense. It doesn’t help that fixing one source of low profitability can easily aggravate another (e.g., raising prices without also sharpening your value proposition can result in higher customer churn).

This gets at why joining something like The 20 can be so transformative. We’ve built an entire platform that scales – not a bunch of different solutions that you need to figure out how to combine into a coherent business model. It’s truly ‘plug and play,’ with scalability and profitability baked in at every level.

Check out this case study for a more detailed look at how The 20 helps MSPs with profitability and overall business health.

Struggling with thin margins and poor work/life balance? Reach out today to discuss your pain points – and how to solve them.

The 20 MSP Announces Latest Trio of Acquisitions  

The 20 MSP expands reach with 42nd, 43rd and 44th acquisitions, continues to lead M&A charge in managed services sector.  

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Leading managed IT services provider, The 20 MSP, today announced its latest round of acquisitions, welcoming three more managed service providers (MSPs) to its growing nationwide network. These strategic deals bring The 20’s total acquisition count to 44, further cementing the company’s position as one of the fastest-growing and most active consolidators in the managed services space. 

The three MSPs joining The 20’s ranks are Red Level Group (Michigan), iStreet Solutions (California), and InData Consulting (California & Arizona). 

With 40+ acquisitions completed in just three years, The 20 MSP has emerged as a leading player in the MSP M&A market. Historically, The 20’s acquisition candidates have come from its peer group, The 20 MSP Group, a strategy that has allowed for rapid 60- to 90-day integrations and low attrition. This latest round of deals conforms to the same model, with all three MSPs having participated in The 20 MSP Group prior to acquisition. 

“There’s always risk in M&A, but we’re mitigating a huge amount of it by frontloading the integrative work,” explained Tim Conkle, The 20’s founder and CEO. “Instead of acquiring first and asking questions later, we’re bringing MSPs into our tent and establishing robust cultural and operational harmony in the trenches. Other buyers are starting to follow suit, and lean more into integration – but I believe our commitment to pre-alignment and cohesion across an entire platform is still unmatched in the current market,” Conkle added. 

The 20’s latest deals also reflect an emphasis on strategic expansion. The initial focus of the company’s M&A push was on adding revenue and extending geographic reach. Now, as The 20 solidifies its national footprint, the company is looking to add key expertise around AI, cybersecurity, compliance, and industry-specific software. 

“Our goal is to bring our brand of managed services to as many businesses as possible in as many sectors as possible,” said Conkle. “We’re doing great on the geographic front, and now we’re starting to focus more on the strategic addition of talent and industry-specific expertise,” Conkle added. “It’s an exciting thing – bringing new knowledge and capabilities into the fold, and giving owners a chance to work their magic within a proven framework.”  

Ast 2025 draws to a close, The 20 MSP has a full pipeline of acquisition candidates and a firm intention to continue scaling aggressively in 2026. 

Pinecrest Capital Partners served as the exclusive financial advisor to The 20 MSP on the acquisitions. Texas-based Sunflower Bank, acting as sole lead arranger in a syndicated credit facility for The 20 MSP, provided the funding tranche.   

MSP Acquisitions: 11 Common Pitfalls

M&A is tricky business. Whether you’re acquiring/merging with another MSP or looking to get acquired yourself, preparation is essential, and poor planning can quickly turn opportunity into disaster.

So, what are the most common pitfalls to avoid? And how can your MSP avoid the critical mistakes that commonly derail deals?

Start here! In this post, we’re sharing 11 M&A pitfalls every MSP should know. Whatever your plans, understanding the following risks and misconceptions will set you up for a much smoother ride.

M&A Pitfall #1: Starting Too Late

You’re not planning on selling anytime soon, so you don’t need to worry about this M&A stuff yet…right?

Wrong! When it comes to consolidation, there’s almost no such thing as getting ready too early. That’s because M&A best practices are, at the same time, valid growth principles. By preparing to sell – even if you’re not planning to sell – you’re not jumping the gun; you’re leveraging established tactics to build a more scalable and valuable business.

It’s also worth noting that the current wave of roll-ups is being driven by a savvier, more selective pool of buyers. Current buyers are, as one M&A advisory firm observes, “digging deeper into operational efficiency, customer concentration, and leadership strength.”

Bottom line: Get your house in order now!

M&A Pitfall #2: Keeping Messy Books/Weak Contracts

This one is straightforward: messy books kill deals! MSPs – especially smaller shops with fewer employees – often underestimate just how orderly financials must be to please prospective buyers. You’ll also want to review your contracts prior to entering negotiations. Buyers want to see locked-down contracts with longer terms, and ideally, a clause that allows for the transfer of the contract upon the sale of your business.

Bottom line: Clean up those books and lock down those agreements!

M&A Pitfall #3: Jumping at the First Offer

While buyers have gotten pickier, the market is still highly favorable to sellers. Jumping at the first offer may seem safe, but it can leave money (or better terms) on the table. So, if your circumstances allow for it, take time to shop around and compare deal structures, valuation, and cultural fit. The right fit will maximize your outcome and set you up for long-term success.

Bottom line: Hold out for the right buyer!

M&A Pitfall #4: Ignoring Your Gut

Numbers aren’t everything. If something feels off in a deal, it likely is. Trust is foundational to a successful M&A transaction, and if you’re uncertain about a buyer’s vision, integrity, or overall competence, don’t be afraid to call things off.

In addition, it’s possible for a deal to look good on paper, and still be a poor fit. This can be due to a cultural mismatch, which should not be taken lightly or dismissed as merely a “soft” consideration. As advisory group Cogent Growth Partners notes, “…more deals fall apart because of culture clashes than financial disagreements.”

Bottom line: Trust your instincts, evaluate buyer alignment, and don’t ignore the soft side of M&A, as it can make or break a transaction.

M&A Pitfall #5: Accepting Earnouts Uncritically

Earnouts are on the rise in M&A deal structures, but not all buyers offer them (we don’t at The 20, for instance). Furthermore, not all earnouts are fair or realistic; some deals tie payouts to performance metrics that are either outside of your control or simply highly difficult to achieve. Before signing on the dotted line, scrutinize the offer’s terms, timeline, and expectations. If structured poorly, earnouts can turn into a source of stress rather than reward.

Our two cents: We think earnouts tend to create an adversarial relationship between buyer and seller, and typically serve to protect buyers’ risks to the detriment of sellers. That’s why we include zero earnouts in our acquisitions – a clean, upfront deal aligns incentives from day one and make for a much smoother transition of ownership.

M&A Pitfall #6: Focusing Purely on Revenue/Profit

Today’s buyers are digging deeper into acquisition targets than they were five years ago, during the first M&A boom in the channel. Sure, they still want to see strong revenue (with at least 70% recurring) and healthy EBIDTA, but they also want client diversification (no single client dominates revenue), sustainable cost structures, strong contracts, and low churn. If you’ve inflated short-term margins or concentrated your revenue, your valuation may suffer.

Bottom line: Highlight the stability, predictability, and scalability of your MSP – not just the top-line numbers.

M&A Pitfall #7: Assuming Buyers Only Want Sale-Ready MSPs

Some buyers will work with you to grow your business before acquisition. At The 20, for instance, you can plug into our peer group to achieve rapid growth and scale, while also aligning your core business processes with our model. The former is aimed at helping you build an MSP worth selling, while the latter ensures that integration goes smoothly if and when you choose to pursue a deal (we don’t pressure members of our peer group to sell, but rather, let owners approach the table first).

Bottom line: Don’t wait until everything is perfect to pursue a deal, because strategic preparation with the right buyer can be a game-changer.

Relevant reading: Learn more about the power of peer groups in unlocking higher multiples.

M&A Pitfall #8: Prioritizing Independence Over Integration

You found a buyer who made an attractive offer and agreed to let you stay mostly independent…Isn’t that the dream?

Not exactly. While it can be tempting to pursue deals that don’t involve extensive integration, there’s a reason more buyers are embracing unification: it works! When you tack together a bunch of different MSPs with disparate tools, operations, and culture, you get just that – a mishmash! If you’re hoping to hit performance metrics to receive your full payout, that lack of cohesiveness could come back to bite you.

Moreover, the technology services sector has historically struggled with scale, and the road to profitability is much more difficult when you’re not enlisting standardized and unified processes.

Our two cents: It’s no secret that The 20 has been committed to platform-wide integration from day one. In fact, we like to think our track record – 40+ acquisitions in under 3 years with minimal attrition – is a big reason for the shift in buyer behavior; other major buyers see how smoothly our model works, and are now adjusting their own approaches accordingly.

Bottom line: Integration is the most reliable path to M&A success – for both buyers and sellers. Staying independent post-sale can work out, but it’s a tougher road.

M&A Pitfall #9: Being Too Shy

Growing an MSP and selling an MSP are worlds apart – and a lot of sellers can feel out of their depth during the process. However, it’s crucial that you don’t let those feelings prevent you from speaking up and being your own best advocate – from asking questions, making requests, and walking away from deals that don’t meet your criteria. Remember, you’re not the only seller in the equation: the buyer is also selling (themselves) to you. Demand to be impressed.

Bottom line: Don’t be shy! You worked hard building an MSP worth selling, and deserve to exit on your terms.

M&A Pitfall #10: Not Knowing Your “Why”

Why are you selling your MSP? If that’s a difficult question to answer, you might want to slow down and do some reflecting – before inking any deals. Knowing your “why” and having a clear endgame in mind is perhaps the most essential aspect of navigating M&A. When you know where you want to go, figuring out how to get there becomes so much easier.

Are you trying to retire or would you prefer to remain in the industry, perhaps in a more specialized role? Are you looking to start a new venture once you sell your MSP? What sort of funding does your next chapter require? Do you want a quick payout, or are you thinking more long-term – i.e., securing your financial freedom?

Bottom line: Your “why” is everything. Get clear on your overarching purpose – and never lose sight of it.

M&A Pitfall #11: Not Knowing Your Worth

How much is your MSP worth? Many owners overestimate their businesses’ value, often because of pitfall #6 – focusing too much on top-line numbers like ARR and EBIDTA. Emotional bias also plays a role; you’ve poured years into your business, so it’s easy to see it through rose-colored glasses. But unrealistic expectations can lead to disappointment, friction, and a rocky deal process.

That said, undervaluing your MSP is also costly – for obvious reasons. Smaller firms sometimes assume they won’t command a strong multiple, but buyers frequently pay premiums for niche expertise, high growth potential, or dominance in a specific vertical.

Bottom line: Know your worth – not in the motivational-poster sense, but in the practical, data-driven sense. Understanding what truly makes your MSP valuable helps you walk into every negotiation with more confidence and clarity.

The 20 Helps with the Big Picture

M&A is complicated. So is scaling an MSP without the right combination of tools, processes and people. That’s why The 20 exists: to help ambitious MSP owners skip the grueling years of trial and error, and plug into a model that just works.

Growing, scaling, exiting – whatever your big business goals are, The 20 provides the roadmap to get there faster.

Get in touch to learn more.

Visit our M&A page for more free resources – including deep-dive video interviews with sellers who’ve completed their exit.

The 20 Welcomes Christine Ululati as Senior Vice President of Channel Sales

About The 20

VISION ’25 Awards: Celebrating the Power of Community 

VISION ’25 was unforgettable. Our annual conference for growth-minded MSPs and industry leaders keeps reaching new heights, and this year was no exception. The energy, collaboration, and sense of purpose set VISION ’25 apart as something truly special in the channel. 

That spirit of unity was on full display at the VISION ’25 Awards Ceremony. When Tim Conkle first asked, Can competitors really come together as collaborators? he was betting on a vision that many thought impossible. Years later, this community continues to prove the answer is yes. The 20 isn’t just a network of MSPs. It is a family of peers, partners, and friends who celebrate each other’s successes as their own. 

On Thursday evening, the excitement was undeniable. Every handshake, cheer, and round of applause carried a genuine sense of camaraderie. The Awards Ceremony recognized MSPs and vendors whose exceptional performance, innovation, and growth defined 2025 and pushed our entire community forward. 

As Tim Conkle, CEO of The 20, shared: 

“The power of collaboration in our industry can’t be overstated. What I saw this year was proof that this group is more than a network, it’s a family. To our winners, congratulations on your well-deserved recognition. To our members, thank you for believing in the dream and proving every day that together we are stronger. You are The 20 Strong.” 

Now, let’s celebrate this year’s champions … 

Partner of the Year – Pax8 

Best Revenue Booster – Datto 

Most Helpful Vendor – Cytracom 

Product of the Year – N-Able, Cove Data Protection 

Revolutionary Solution – Huntress 

Rising Star – Future Link IT 

Support Desk Favorite – Blue Spark Data 

MSP Business Growth – AIS 

John Rutkowski III Ambassador of the Year- Forrest Smith of Asgard Computers 

MSP of the Year – Coleman Technologies  

Most Engaged MSP – Image Tech 

Congratulations to each and every award winner, and to all who make this community extraordinary. Your drive, passion, and achievements inspire us all. 

Finally, a heartfelt THANK YOU to everyone who made VISION ’25 possible, including our MSP members, industry partners, speakers, sponsors, and staff. You are the reason this conference continues to grow and thrive. If VISION ’25 showed us anything, it is that the best is yet to come. 

VISION ’25 Recap: A Look Back at the MSP Event of the Year

What. An. Event.

We’re still feeling the buzz after an incredible week in Dallas which saw 300+ MSPs from all over the country get together for 2+ days dedicated to health and wealth – i.e., “the big stuff.”

The insights were deep. The connections were real. And the parties? You know those were epic. The feedback’s been rolling in and we’re proud to say…VISION ’25 was the best one yet – truly one for the books.

We invite you to join us as we take a look back at last week’s sessions, speakers, and magical moments. If you were there, enjoy this trip down memory lane. And if you weren’t…we just hope the FOMO isn’t too severe!

Tuesday – It’s Grow Time!

They came from all over, one MSP after another, looking for transformation. Attendees gathered at the gorgeous Renaissance Hotel in Plano, TX, right outside of Dallas, and you could feel it right away: this one’s gonna be special.

We’ve said it before and we’ll say it again: this isn’t the year to sit on the sidelines and play it safe. Our industry’s always been fast-moving, but lately, things feel like they’re stuck in overdrive. As an MSP, adapting to the recent and rapid changes isn’t optional; it’s necessary for survival.

Needless to say, we had a lot of ground to cover over the next few days. But before getting down to brass tacks, we kicked things off with a fun-filled Welcome Reception that set the tone for an incredible week. It’s always heartening to see MSPs from all over the map come together in a spirit of curiosity and collaboration – and this year was no exception. This one’s gonna be special…

Wednesday – Health Hacks, Power Plays & the Happiest of Hours

After months of preparation, it was finally here: the MSP event of the year. Our own Tim Conkle (founder & CEO of The 20) took the stage bright and early for an eye-opening session titled You² – The Exponential Power of Yes. Tim’s talk drove home a point every entrepreneur needs to hear (and be reminded of regularly): Success at work means nothing if you fail at home. Tim encouraged MSP leaders to think in decades – and to chart a path forward that includes not only business growth, but personal fulfillment. The 20 was founded on the idea that MSP owners deserve full, balanced lives, and it was awesome to hear our leader lay out the roadmap.

Following Tim was another speaker focused on the big picture. Regan Archibald, founder of East West Health and a world-renowned longevity expert, delivered a powerful keynote presentation on boosting your energy, sharpening your mind, and reversing the aging process. Creating Your Ageless Future included incredible stories of personal transformation and inspired each one of us to avoid “hell” – dying and then meeting the person you could’ve become.

Thank you, Regan, for bringing what’s truly important into sharp relief.

Next up was N-able‘s Keith Young with a deeply informative session all about Cove Data Protection – a cloud-based backup and recovery tool custom-built for the needs of MSPs. Keith rocked it, and so did the next two speakers – Tim Conkle and John Pagliuca (CEO, N-able) – whose fireside chat, Platform Power Plays, laid out modern scaling strategies for the growth-focused MSP owner.

Tim and John made one thing clear: the separation between the “haves” and “have-nots” in the MSP space is only getting bigger, and if you want to escape the latter, you need to standardize, automate, and augment. It was great to hear the fluff-free advice of two of the most forward-thinking CEOs in our industry – thanks, guys!

After lunch, we heard from Kaseya‘s Jon DePerro on Revenue or Risk. Jon explained in crystal-clear terms how MSPs are leveraging GRC (governance, risk management, and compliance), and left us with a much better understanding of how to turn compliance from a checklist into a true business asset. Great stuff, Jon!

Following Jon was channel legend Jay McBain with an insight-packed session – State of the MSP Industry. The 2021 “Channel Futures Influencer of the Year” highlighted the link between agentic AI and managed services, and explained how MSPs can evolve their services to take full advantage of the AI moment we’re all living in. “What got us here, doesn’t tend to get us there” – thank you for the timely lesson, Jay!

After Jay shone a light on the future of B2B procurement, our own Crystal Conkle (CMO) took the stage alongside Katie Vreeland to discuss the “new rules” of brand that actually work for MSPs – and how their joint venture, CMND Media, is blazing a bold trail forward. Thank you, Crystal and Katie – y’all truly are the marketing vanguard!

And remember, MSPs – “trust beats traffic,” and the “future doesn’t belong to the loudest MSP but the clearest.” Now get out there and rise above the “sea of sameness”!

Rounding out Day 1 sessions were talks from Will Sexton (11:11 Systems), Justin Patrick (Pax8) and our own Ken Pecot (COO). Will walked us through how 11:11 Systems is working to help MSPs “modernize, protect, and manage” their IT environments. Justin elucidated the many ways Pax8 isn’t just a distributor, but a true marketplace built to help managed service providers become managed intelligence providers. As for Ken, he dove deep into the numerous operational improvements we’ve made at The 20, and shared hard-earned wisdom to help other operators bring newfound efficiency to their MSPs. Three cheers for three excellent sessions!

After a full day of sessions, it was time for Happy Hour. A Texas-sized shout-out to all the brave souls who took the stage for some karaoke fun. From Miley Cyrus to Garth Brooks, y’all crushed it with your covers – flat notes and all!

Thursday – Panels & Party Time

We hit the ground running on Day 2 of VISION with another session from Tim. Better Together: Why Wealth Starts with “We” dug into an idea at the very heart of The 20: We’re better together. This idea has always propelled our company forward, and now, through M&A, we’re tapping even more deeply into collective strength to bring MSPs lasting wealth and true legacy. As Tim laid out the numbers, MSP owners in the room sat up a little straighter, knowing that a well-planned exit can be life-changing.

Howard Getson (Capitalogix) was next on stage, and the AI veteran delivered a battletested strategy for AI adoption, implementation, and optimization. As Howard pointed out, humans are “great at recognizing big changes on the horizon, but rarely anticipate the consequences.” Thanks for correcting for that, Howard – and for showing MSPs a clear path forward as we enter the era of agentic AI.

Speaking of seeing the future, the next session – a panel discussion featuring elite financial minds from J.P. Morgan, Goldman Sachs, and other leading investment firms – shed light on how MSP owners can protect their wealth after a major exit. For a channel event, this level of Wall Street brainpower on stage was unprecedented – and MSPs were all ears. A huge thanks to our panelists – Scott Mueller, Neil Rubinstein, Dan Corello, and Mike Parry.

A key takeaway from Making Millions Is One Thing. Keeping It Is Another: Concentration is how you get rich – but diversification is how you stay rich. A golden insight for MSPs looking to secure their financial future!

Barrett Kingsriter closed out the morning sessions with more financial savvy. In Deals, Dollars, and Due Diligence, Pinecrest Capital‘s Senior Managing Director shared what buyers are really focusing on in 2025. We were honored to hear Barrett call The 20’s M&A engine something of a unicorn in our space – “supporting MSP growth and enabling exits within a fully integrated ecosystem.” Something to think about for those of you considering approaching the table for a deal…

The second panel of the day featured MSP owners who sold their companies – and lived to tell the tale. Grow, Exit or Get Left Behind gave attendees an unfiltered look at M&A through the eyes of the folks who’ve been there. We’re so grateful to our panelists – Chris Traxler, Eric Kehmeier, Kevin Peterson, and Wayne Klug. The seller’s voice is too often missing from M&A conversations – and y’all remedied that with generosity, authenticity, and candor.

Also incredibly valuable – the fireside chat between Crystal Conkle and Rania Succar, Kaseya’s recently appointed CEO. Crystal and Rania wasted no time getting into the big ideas that drive our industry forward. As Rania pointed out, “we’re in one of the most exciting moments in history,” and MSPs are facing an unprecedented opportunity to step up to the plate as SMBs’ primary advisors. A few key takeaways from their conversation:

• Going forward, Kaseya is committed to measuring their success with MSPs’ success
• AI’s value comes down to its capacity to deliver measurable outcomes
• MSPs are exceptionally well-positioned to help SMBs adopt AI
• Our industry is ripe for automation (triage, password resets, etc.)
• Stoking bold & creative thinking at an organizational level is all about setting the goal, and letting smart people figure out how to get there
• Leaders, above all else, need to be learners

Thank you, Rania, for your warmth, wisdom, and commitment to driving real change.

On Day 2, we also heard from John Tippett on The Enhanced Partnership Between The 20 and Cytracom, and from Joseph Brunsman (Ciardi Ciardi & Astin) on how MSPs can mitigate risk in our highly litigious age. Thank you, John, for helping MSPs strengthen zero trust security and compliance – and thank you, Joe, for making risk management feel cool and exciting. Protecting clients while protecting your MSP – that stuff’s music to our ears!

Chris Wiser (7 Figure MSP^TM) also took the stage on Day 2 to teach MSPs The Secret to Scaling Your MSP, and rocked the house with a no-nonsense, step-by-step framework for generating 50 new leads per month. Take heed, MSPs – “marketing isn’t a cost; it’s a system.” And when you get strategic and consistent? You win.

Rounding out Thursday’s afternoon sessions were Matt Solomon (Channel Program) with a presentation on BetterTracker – a powerful new tool for MSPs to see deeper and clearer into client spend, slash costs, and never miss another contract renewal – and Jason Jones, who took us Inside Microsoft‘s AI Vision. Thank you, Matt, for identifying the real-world problems MSPs face – and for working hard to solve them. And thank you, Jason, for shining a light on the future – and making us laugh in the process.

Let the Good Times Roll

Thursday wasn’t just about learning stuff to take your MSP to the next level; it was also about celebrating wins, recognizing excellence, and just having a d*mn good time.

After a full day of sessions, we switched gears and presented the VISION ’25 Awards. We’ll announce the winners in a separate blog post – so stay tuned! Congrats to the vendors and MSPs who took home prizes – y’all are freakin’ amazing and the honors were beyond deserved.

As the sun set on Day 2, the women at VISION took to the rooftop pool deck for a special golden-hour Sunset Reception. Conceived by our CMO, Crystal Conkle, the event was a huge success, and epitomized what “making space” really looks like when done right. Thank you to everyone who came – y’all made this unforgettable.

Day 2 finished with a bang at the famous VISION Bash. No one parties like The 20, and this year was no exception. The Jordan Kahn Orchestra set the soundtrack, circus acts wowed the crowd, and attendees took us all back to school with their collegiate attire.

Friday – Members Only

On Day 3 of VISION ’25, we closed the doors to general attendees, and held a special half-day for members of The 20 only. Our tight-knit community of MSP leaders packed the room for a deep dive into what our group’s accomplished – and, more importantly, what’s next.

We won’t divulge too much here – this stuff is “just for us chickens,” to quote Tim. But if you were in the room, you already know how fast we’re moving, how much we’re achieving, and what’s in store. Needless to say, the future is looking bright for this group of MSPs, and we’re proud to be leading the charge.

What’s it like to be a part of this movement? To be a member of The 20 as an MSP owner? On Friday’s half-day, one member took the mic and said, “This is the most confident I’ve been about the company in 17 years of business.” Another shared, “I’ve never been to any conference and felt like they cared about me.”

All we can say is: we’re honored.

We hope you enjoyed this recap, but remember – nothing beats being in the room. So if you’re kicking yourself for missing out, make a plan to get in the game next year, because you’d better believe we’re going to do everything in our power to, once again, raise the bar on what an MSP event can be.

Till then – we are The 20 strong!

The 20 MSP’s Tim Conkle Named Finalist for CRN’s Solution Provider CEO of the Year

Industry veteran recognized for innovating scalable MSP platform and driving growth at The 20 MSP

Full Press Release Here

The 20 MSP is proud to share that CRN®, a brand of The Channel Company, has recognized Tim Conkle as a finalist in the first-ever CRN Best of the Channel Awards in the Best Solution Provider CEO of the Year category.

As a finalist, Tim Conkle is being spotlighted for his dedication to channel innovation and excellence through the creation of a scalable national MSP platform, the implementation of a standardized service delivery model, and a bold M&A strategy that fuels growth, attracts top talent, and accelerates national expansion into new markets.

This is the first annual CRN Best of the Channel Awards honoring the individual leaders, teams, and companies setting an example with their visionary strategies and outstanding contributions to channel success. Winners will be announced at the Best of the Channel Awards Gala in Atlanta on Oct. 14, immediately following The Channel Company’s XChange Best of Breed Conference.

Tim Conkle is a recognized leader and innovator in the MSP industry, known for developing a robust blueprint for MSP growth, pioneering a highly scalable service delivery model, and spearheading an M&A campaign to bring the industry’s top talent into The 20’s tent. His annual VISION conference invites MSPs from all over North America to learn from The 20’s example, and forge their own paths forward in a rapidly evolving space.

“We are excited to spotlight the finalists of the first-ever CRN Best of the Channel Awards, representing the channel’s guiding lights for innovation, partnership, and impact,” said Jennifer Follett, VP, U.S. Content, and Executive Editor of CRN, The Channel Company. “These leaders, teams, and companies represent the best of what’s possible—from future-focused strategies and bold leadership to a deep commitment to channel-driven success. We are proud to highlight how their achievements and dedication drive the channel forward.”

“This is a huge honor,” shared Conkle. “Our company is all about breaking the mold and reimagining what’s possible for an MSP—and the businesses we serve. But that kind of work isn’t a solo effort, and I’m incredibly lucky to be surrounded by a team who believe in the mission and who come to work every day looking to make a real impact. I’m grateful for this recognition, but even more grateful for the people I get to share it with.”

The full list of CRN Best of the Channel Award finalists can be viewed online starting July 22nd at crn.com/best-of-the-channel-awards.

About The 20 MSP

As a leading provider of managed IT services, The 20 MSP serves thousands of businesses nationwide, including single and multi-location organizations, providing each one with white-glove service, secure and streamlined IT infrastructure, and 24/7/365 support. We believe in building lasting relationships with clients founded on trust, communication, and the delivery of high-value services for a fair and predictable price. Our clients’ success is our success, and we are committed to helping each and every organization we serve leverage technology to secure a competitive advantage and achieve new growth. To learn more, visit the20msp.com.

About The Channel Company

The Channel Company (TCC) is the global leader in channel growth for the world’s top technology brands. We accelerate success across strategic channels for tech vendors, solution providers, and end users with premier media brands, integrated marketing and event services, strategic consulting, and exclusive market and audience insights. TCC is a portfolio company of investment funds managed by EagleTree Capital, a New York City-based private equity firm. For more information, visit thechannelco.com.

The 20 MSP Named to Dallas Business Journal’s 2025 Fast 50 List  

The 20 MSP recognized for rapid expansion, strengthens position as national leader in managed IT services. 

The 20 MSP, a leading provider of managed IT services, is proud to announce that it has been named one of the 50 fastest-growing private companies in North Texas by the Dallas Business Journal. 

The annual list honors organizations that have achieved exceptional growth over the past three years, driven by strong leadership and strategic execution, and resulting in a significant impact on the regional economy. 

The 2025 Fast 50 companies reported a combined $8.05 billion in revenue, underscoring the robust role these organizations play in driving economic growth across North Texas. The 20’s leadership team is deeply honored for the inclusion, and looks forward to continuing its upward trajectory, leveraging innovation, client-centric service, and strategic expansion to build on this momentum and further solidify its national footprint. 

“This recognition means a lot, and we’re genuinely honored to be included among such an inspiring group of innovators, leaders, and trailblazers,” said Tim Conkle, founder and CEO of The 20. “Making this year’s list reflects our rapid growth, but more than that, it’s a testament to the remarkable drive of our entire team. Going forward, our mission stays the same: helping our clients run smarter, safer, and more efficient businesses with technology they can count on.”  

The 20’s national expansion is fueled by a bold acquisition strategy that has broadened the company’s service offerings and attracted significant industry attention. Leveraging its membership-based growth platform, The 20 MSP Group, the company focuses on acquiring MSPs belonging to the group, as this strategy enables swift integrations with minimal friction and attrition. With 41 deals completed to date, The 20 is reshaping the managed services landscape and rapidly emerging as a powerhouse in the industry. 

“While we’ve closed 40+ deals in less than three years, our acquisition strategy isn’t about speed – it’s about bringing MSPs on board who have already embraced our way of doing business,” Conkle explained. “This ensures seamless integrations and minimal disruptions for our clients. Our goal isn’t just to grow, but to capitalize on real relationships and a shared vision. Getting bigger is gratifying, but the real reward is seeing the collaborative dynamic of our group drive our success on the national stage. ‘Better together’ is a mantra we swear by – and it’s helping us distinguish ourselves in a very crowded industry.” 

Honorees will be celebrated at an awards ceremony hosted by the Dallas Business Journal, where final rankings will be revealed and the No. 1 company named.  

About The 20 MSP 

As a leading provider of managed IT services, The 20 MSP serves thousands of businesses nationwide, providing each one with white-glove service, secure and streamlined IT infrastructure, and 24/7/365 support. We believe in building lasting relationships with clients founded on trust, communication, and the delivery of high-value services for a fair and predictable price. Our clients’ success is our success, and we are committed to helping each and every organization we serve leverage technology to secure a competitive advantage and achieve new growth. To learn more, visit the20msp.com. 

The Last Great Shift: Why Smaller MSPs Need to Make Bold Moves – Now

We get asked about our name a lot. The 20? It doesn’t sound like your typical IT company – but that’s kind of the point. We exist to help MSPs break out of the pack and reach the top 20% of the industry. The name is a reminder: average isn’t the goal.

But what does a top-20% MSP look like? And how have the standards of MSP excellence changed over the years – from the industry’s early days to where we stand now?

In this article, we’ll take a hard look back at MSP excellence through a historical lens, outlining the key phases in our industry’s evolution – and why the shift happening right now is the most critical yet.

If you’re a smaller MSP (< $5M in recurring revenue), this article is more than an analysis; it’s an urgent call to action. That’s because the window to act is closing, and staying on the sidelines is becoming less viable by the day.

80/20 Rule: What’s in a Name?

Again, our name refers to our mission – to help MSPs join the top 20% of the industry. But why twenty, instead of, say, fifteen or even ten?

The answer lies in the 80/20 rule (aka the Pareto principle) – a simple but powerful concept that shows up everywhere: roughly 80% of results come from 20% of causes. In the MSP world, the 80/20 rule is crystal clear: the top 20% of providers dominate, capturing the lion’s share of revenue and clients, while the remaining 80% fight over scraps.

That’s the group we want to help you join – the “vital few” at the top who are capturing the majority of the market’s value.

A relevant link: Hear more from our own Chris Traxler on what today’s top-20% MSPs look like – check out the short video.

OK, let’s get into the nitty-gritty: how the bar for MSP excellence has risen over time.

History Lesson: The Evolution of MSP Greatness

What does it take to be a great MSP, where “great” is loosely defined as a top-20% company?

This is a good question. But an even better question – a great question – takes time into account: How has “what it takes” changed?

As you’re about to see, taking time into account reveals something important about the current state of our industry – and why smaller MSPs are facing a make-or-break moment.

Looking back at the evolution of MSP greatness, we’re confronted with three distinct phases or “eras.” If you run an MSP today, you need to know what came before, because it sheds a ton of light on what’s about to happen…

1. The Break/Fix Exodus (2000 – 2010): From Chaos to Contracts

MSPs emerged in the early aughts as a fresh alternative to the traditional “break/fix” model of IT support, with its reactive business model and hourly rates. In the early days of our industry, going “all in” on the MSP model – proactive support, recurring revenue, SLAs, etc. – wasn’t enough to put you in the top tier. But it was close.

Top-20% MSPs

The big winners were the ones who didn’t hedge. They walked away from break/fix entirely and committed to a new way of delivering IT: contract-based, preventative, and relationship-driven. That full embrace of the MSP business model was the first real threshold of excellence.

2. The Scaling Wars (2010 – 2017): Growing Up Fast

As the model became mainstream, the game shifted from what you sold to how you delivered it. The MSPs that scaled – operationally, financially, and geographically – rose to the top. Mature tools, ticketing systems, standard stacks, and sales playbooks emerged. It was no longer enough to just be “an MSP” – you had to be a real business.

It was during this era that The 20 rose to prominence. Recognizing that most MSPs needed help with scale, we developed a blueprint to help immature companies grow up fast – and leave the competition behind.

Top-20% MSPs

Top performers in this era focused on operational maturity, sales discipline, and building something scalable, not just stable.

3. The Consolidation Crunch (2017 – Present): Big Fish, Bigger Pond

We are in the midst of a new era in managed IT. Fueled by a deluge of private equity investment, our industry’s seen a wave of roll-ups, mergers, and national platform plays. The result? A class of super “platform MSPs” (The 20 MSP included).

Top 20% MSPs

The cream of the crop now includes players with in-house marketing teams, 24/7 SOCs, dedicated sales staff, and the ability to undercut or out-service smaller shops at scale.

Take note: For smaller MSPs, surviving this era will require one of two things: joining the consolidation wave, or finding a way to punch above their weight using smarter tools, better positioning, and ruthless operational efficiency – hey, that’s what we help with!

4. The Great Divide (Coming Soon): Too Big to Catch

As consolidation continues to sweep through our industry, we’re quickly approaching a point of no return, where the gap between the haves and have-nots becomes all but unbridgeable.

Soon, the top 20% of MSPs will operate in a different league entirely. They’ll be the first to truly harness the power of AI within the context of the managed services business model. Add to that specialized teams, compliance expertise, 24/7 service layers, and aggressive marketing engines that keep pipelines full year-round.

At that point, it won’t just be difficult to break into the top tier; it will be structurally out of reach. The window is still open, but it’s closing fast.

The Moral of the Story: It’s Grow Time, Y’all

The takeaway here couldn’t be clearer:

If you’re a smaller MSP and want to remain relevant, the time to make a big push is right now. In other words, if you want to stay in the game, you have to actually get in the game.

“Getting in the game” doesn’t necessarily mean chasing an M&A deal (although we firmly believe that building toward an exit is the smartest strategy right now – and offer MSP owners a unique and compelling path to get there). However, it does mean making major strategic adjustments and deep structural changes, instead of relying on incremental improvements.

Get in the Game at VISION ’25!

If you think this article is off base, go ahead and call our bluff. Keep doing things the same way and see how that works out.

But if you recognize that the window to join the MSP elite is closing – and refuse to be shut out – you can kickstart your MSP’s radical transformation this August at VISION ’25 (register here).

Our theme this year? Simple: Get in the Game.

Introducing IGNITE: 90 Days to Success at Scale

Here at The 20, we speak with hundreds of MSPs every month. The vast majority of these companies could really use our help with scaling, boosting profitability, pricing and packaging – in short, the entire ‘business side’ of things.

Some MSPs recognize this and sign up as members on the spot. Others hesitate, but eventually decide to take the leap and join our growth platform.

Then there are MSPs who know they need help – but choose to continue grinding it out on their own. Why? Various reasons, but one looms largest: a fear of change.

Historically, becoming a member of The 20 meant switching your tool stack, migrating your clients over to our 24/7 US-based support desk, and adopting a whole new sales process and pricing model – right away. It was a lot to ask – and for many MSP owners, it was just too much, too fast.

So we’re changing things up – in a major way.

Introducing IGNITE, your MSP’s 90-day path to success at scale. IGNITE is a program designed for MSPs who are curious about The 20 – and want help scaling – but aren’t ready to dive straight into full membership. Here’s how it all works…

IGNITE: Coaching, Clarity, Results

IGNITE gives your MSP a chance to experience the power of our platform without committing to full membership right away.

As an IGNITE member, you’ll spend 90 days working directly with our MSP community, leadership team, and your own dedicated growth coach. With their structured, hands-on guidance, you’ll dig deep into your MSP business and build a foundation for real, sustainable growth.

Here’s what’s included in your IGNITE membership:

A Custom Growth Plan

After completing IGNITE, our guess is you’ll be chomping at the bit for full membership. But even if we part ways, you’re guaranteed to walk away with a clear, step-by-step growth plan tailored to your specific goals. This isn’t theory – it’s structured execution to get you from point A to point B.

Benchmarking Insights vs “Top 20%” MSPs

The value proposition of The 20 is right there in our name: we want to help your small to mid-sized MSP break into the top 20% of our industry. But how far does your MSP have to go? How do your operations – including headcount, margins, service delivery, and tool usage – stack up against top performers?

What defines a top-20% company in our space? An IGNITE Membership will leave you with a clear picture of where you stand and where you need to improve.

Sales & Pricing Coaching

Forget wishy-washy advice and say hello to hands-on guidance from folks who built their own successful MSPs from the ground up.

IGNITE sets you up with expert coaching and highly structured support, starting with a 1-on-1 consultation to assess your business model, goals, challenges, and revenue performance.

The program also includes access to our PROPEL Sales Training, held live at The 20 HQ in Plano, TX. PROPEL is an immersive, 2-day workshop designed to bring new members up to speed on the sales and pricing methodologies used by elite MSPs.

Peer Groups for Accountability

As an IGNITE member, you’ll join a small band of business owners who are pushing for the same kind of growth you want. Being around these folks will teach you new strategies, provide fresh perspectives on familiar challenges, and light a fire under you like nothing else can. Say goodbye to the lonely grind – you’re in The 20 now!

A Migration Roadmap

As you move forward with IGNITE, you’ll likely want to know what a transition to full membership would look like. We’ve got you. While no tech or client migrations are required during IGNITE, we’ll provide you with a structured preview of what moving to The 20’s tool stack and support model would involve, breaking everything down into clear steps so you know exactly what to expect. Your roadmap will be personalized, detailed, and comprehensive. No surprises – just a clear path forward.

What Happens After 90 Days?

After 90 days, if you’re not seeing real results – and we’re talking about real, measurable progress – we’ll step back, reassess, and have an honest conversation. Does it make sense to adjust and continue with the program – or part ways, no hard feelings?

If things are clicking and your MSP is growing and scaling according to plan, we invite you to graduate to full membership.

You’ll move to our stack – a battletested set of tools optimized for MSP service delivery and efficiency. You’ll start offloading tickets to our 24/7 support desk. You’ll tap all the way into our sales engine, which includes co-selling assistance to help you land bigger deals.

IGNITE brings your MSP up to speed on elite strategies for growth, scale, and profitability. Full membership is where you really learn to fly.

Grow – Without the Gamble

For a while, we were so confident in our model that we asked your MSP to go “all in” from day one. But our job is to help MSPs grow, and we realized that giving the more cautious MSP owner a gentler onramp would, in the end, help more MSPs escape the grind and start scaling for real.

Can your MSP start off with full membership? Absolutely. If you’re ready to go all in, we won’t stop you. Maybe you’ve spoken with enough MSPs in our group to know that our approach gets results – and have no problem adopting new tools and processes.

But if you want to test the waters before diving in, IGNITE is what you’ve been looking for. You’ll get to know who we are, how we work – and most importantly, how we can help your MSP get to that next level.

It’s time to get unstuck. Let us meet you where you are – before we take you where you want to go.

To learn more and get on the IGNITE shortlist, book your kickoff call and let’s talk growth!