The Turnaround Story of Seann Moreno and His MSP Journey with The 20

In 2022, Seann Moreno of Data Tech Café found himself in a predicament that many Managed Service Providers (MSPs) dread: his business was bleeding money. Day-to-day challenges had accumulated so much, simply staying afloat was becoming a huge burden. His MSP needed a turnaround – and fast.

Big Changes

Seann’s main struggle was high turnover among technical staff. Training technicians only to watch them leave drained company resources, while making it difficult to provide consistently excellent service. The problem wasn’t going to go away on its own, so Seann started thinking.

First, he took an honest look at his operations and several things became clear: he needed to overhaul his approach to managing tech support, as well as streamline client onboarding and bring documentation up to par.

Making these changes would be no small feat, but Seann understood their urgency, and in late 2022, he began exploring outsourcing Tier 1 support so he could focus on high-level projects and onboarding tasks. He explored several companies, but they either (a) lacked a US-based support desk, or (b) weren’t a good fit culturally.

1,800 Endpoints Later…

Finally, Seann met with The 20. Impressed by our team’s structured leads and 24/7 US-based support desk, he decided to test out our service with his largest and noisiest client. The transition started small, with simple tasks like password resets. But it didn’t stay small – within two months, Seann had moved 1,800 endpoints over to The 20.

The initial experiment was a success. But was Seann ready to make the full transition? Adopting our service delivery model for all his clients would be a massive undertaking, and there was still that documentation to worry about…

Despite his fears, Seann committed to the transition.

Focused on Growth

Seann’s goal in joining The 20 was clear: minimize internal Tier 1 tasks and reevaluate his team composition. By June, merely four months later, every one of his clients was fully onboarded with The 20.

The improvements came quickly and were dramatic. Leveraging The 20’s resources and support desk allowed Seann to serve more/bigger clients with fewer staff, leading to greater operational efficiency and profitability. We even helped with that pesky documentation!

From a company struggling to stay afloat with negative EBIDTA, Data Tech Café was now thriving, growing, and scaling with ease.

A huge part of Data Tech’s transformation involved a shift in focus among Seann and his leadership team. No longer bogged down by day-to-day operations (Data Tech was able to offload up to 90% of Tier 1-3 work to The 20), Seann’s senior staff could turn their full attention to high-value activities and strategic growth initiatives. And with The 20’s top-notch technical team shoring up support, Seann’s days of worrying about retaining talent were over.

“The 20 allows me to work on my business now instead of in my business…and life is great because of it.” – Seann Moreno

With The 20’s help, Seann transformed Data Tech Café into the large and profitable company he’d always dreamed of building, and in 2023, he sold that company to The 20 – a big payday and the next chapter in his MSP’s growth journey.

Seann Moreno’s story might be remarkable, but it’s not unusual. The right partnership can make all the difference for a struggling MSP. Success in this industry isn’t just about working hard; it’s about working smart – and getting help when you need it.

Grow Your MSP with The 20!

Questions about growing your MSP? Let’s Talk!

The 20 MSP Bolsters Southeastern Footprint with 37th Acquisition 

 

The 20 MSP continues rapid nationwide expansion with acquisition of Alabama-based Eagle’s Wings Technologies. 

 Full Press Release Here

PLANO, TX. Dec.3, 2024 – Leading managed service provider (MSP), The 20 MSP, today announced its thirty-seventh acquisition to date, and its eleventh of the year. This latest deal brings Alabama-based MSP Eagle’s Wings Technologies under The 20 MSP’s growing umbrella, strengthening the organization’s presence in the Southeastern United States and maintaining strong growth momentum to close out the year. 

 

Headquartered in Enterprise, Alabama, Eagle’s Wings Technologies (President/CEO – Greg Padgett) joined The 20’s acclaimed membership-based growth platform and peer group, The 20 MSP Group, in 2018 in an effort to enhance scalability, streamline operations, and dedicate more time to focusing on business growth and client success. 

 

Since joining the group, Eagle’s Wings has experienced significant year-on-year growth, tripling in size and expanding its service capabilities to include clients in two additional states. “It’s dramatically transformed the way that we do business,” said Padgett, whose MSP won “Support Desk Favorite” in 2023 at the VISION Awards, The 20’s annual honors for top-performing MSPs in its peer group.  

 

“Greg [Padgett] has built something really special – and very much by design,” shared Tim Conkle, The 20’s founder and CEO, and the architect of his company’s bold M&A strategy. “When he came to us back in 2018 looking for help, he understood that the end game was being able to step away from the day-to-day stuff and focus instead on scaling the business and driving long-term growth. Seeing him do exactly that – and transform his company from a break/fix-focused outfit into a thriving regional MSP – has been incredibly inspiring. It’s also been a powerful reminder that what we’re doing works!” 

 

The 20’s leadership team shares in Conkle’s enthusiasm and looks forward to working closely with Eagle’s Wings’ core team to ensure a smooth transition for employees and clients alike.  

 

The 20’s M&A spree began in 2022 with a flurry of acquisitions and has continued at a consistent pace. The company’s consolidation strategy is centered around acquiring ‘member MSPs’ – MSPs that belong to The 20 MSP Group – but also extends to identifying high-potential businesses that align with The 20’s values and growth vision. 

 

Conkle commented on the critical role that talented people and strong leadership play in driving The 20’s growth momentum and success. “From the outside looking in, people tend to focus solely on the balance sheet and on the remarkable growth we’ve achieved in just two short years,” shared Conkle. “But the lynchpin of these deals – the real magic – isn’t neatly quantifiable, as it lies in the talent and expertise we’re adding with each new roll-up. The MSP owners—now shareholders—are the ones who keep The 20 evolving and agile in an industry that demands it. So I’ll say it again: our greatest differentiator is our people.” 

 

Pinecrest Capital Partners served as the exclusive financial advisor to The 20 MSP on the acquisition and associated financing. The 20 has additional acquisitions lined up in the coming months. 

 

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.   

 

About The 20 MSP Group 

The 20 MSP Group is an exclusive consortium for Managed Service Providers (MSP) aimed at dominating and revolutionizing the IT industry with its standardized all-in-one approach. The 20’s robust RMM, PSA, and documentation platform ensures superior service for its MSPs’ clients utilizing their completely US-based Help Desk and Network Operations Center. Extending beyond proven tools and processes, The 20 touts a proven sales model, a community of industry-leading MSPs, and ultimate scalability. To learn more, visit the20.com. 

MSP Acquisition Spotlight – Adam Bell

Discover firsthand experiences from Adam Bell, a former MSP owner, on adjusting to life within a larger organization, finding the right buyer, and embracing a new work-life balance after selling his business to The 20 MSP.

1. What’s it like not being your own boss anymore? Did that take some getting used to?

 

Yes and no. I do miss having the final say and the speed at which I could accomplish things in a smaller organization. However, there’s also a certain ease in having a boss—especially when it’s by choice. I’m still closely involved with my team, which has been beneficial for both them and me during this transition.

 

2. Selling your MSP is a big decision. Where did you go for guidance and advice?

 

I took time to pray about it and sought guidance from several trusted sources—my wife, financial advisor, tax advisor, lawyer, and fellow business owners.

 

3. How difficult was it to find the right buyer? What made you choose The 20 MSP in the end?

 

Finding the right buyer wasn’t easy, but I chose The 20 because of the strong relationship and potential for investment. As a member of The 20, I was already familiar with how they operate, so the decision to merge and scale made perfect sense.

 

4.  What’s changed the most in your life since selling your MSP?

 

Instead of carrying the entire burden of running the company on my own, I now have a capable team to share the responsibilities. This shift has not only lightened my workload but has also allowed me to focus on areas where I can add the most value. Having the support of a strong team has brought a sense of balance, and as a result, I feel significantly less stress overall. It’s been a positive change for both the business and my personal well-being.

 

5. Since selling your MSP, is there something – inside or outside of work – that you’ve been able to focus on more?

 

Although I’m still quite busy, I’ve been able to carve out more time to focus on both my physical and mental well-being.

 

6. What do you miss most about running your own business?

 

I miss the independence and ability to make big decisions quickly.

 

7. What’s your best advice for someone thinking about selling their MSP?

 

Ensure you’re emotionally prepared to let go of the business you’ve built. Take the time to carefully weigh the risks and rewards of selling. Personally, I had clear retirement goals, which I was on track to achieve if everything went smoothly. However, by selling and merging with The 20, I was able to reduce risk while still meeting those retirement goals.

 

8. Can you talk about your current role? How has your day-to-day changed since selling your company?

 

My day-to-day responsibilities haven’t changed significantly—I’m still managing the same team. However, the number of clients we support has grown. When I was running my own business, I lacked the human resources needed to fully manage all aspects. Now, I have a dedicated team to handle financials, billing, client relationships, and technical support. This has enabled my team and me to manage a much larger client base effectively.

 

9. In your opinion, what’s the most important quality for success?

 

Hope alone is not a viable business strategy; true success is built on hard work and tenacity.

 

10. What’s something most people don’t know about you?

 

I am a functional introvert.

 

11. Describe your dream vacation in 3 words…

 

Relaxation, Sun, Fishing

 

Ready to explore more about M&A? Visit our M&A tips page for valuable insights and guidance on other acquisitions like Adam!

Celebrating The 20 MSP as Datto’s Partner of the Year! ????

We’re overjoyed to share that The 20 MSP has been named Partner of the Year at this year’s Golden Datto Awards! Presented at DattoCon 2024, this honor highlights our dedication to innovation, resilience, and excellence – values we proudly share with the incredible Kaseya/Datto community.

The Golden Datto Awards are all about recognizing MSPs who are shaping the future of IT, and we’re truly humbled to be part of this remarkable group. As Datto shared, each award recipient represents “what’s possible through dedication, expertise, and a commitment to success.” For The 20 MSP, this recognition is a testament to the hard work of our team, our collaboration with Datto and Kaseya, and our shared drive to create meaningful impact in the managed services industry.

We’re grateful to Datto for this incredible honor, and we extend our congratulations to the fellow finalists Meriplex, GOCLOUD Inc., VC3, and Logically. Each company exemplifies excellence and dedication, and we’re inspired to stand alongside these leaders in our industry.

A special thank you goes to our members, clients, and partners for being part of this journey with us. Your trust and support drive us to keep setting new standards in MSP excellence, and we’re thrilled to have such a strong foundation to keep building on. We’re excited to continue growing, innovating, and delivering best-in-class solutions that empower our clients to thrive in today’s digital landscape.

Here’s to The 20 MSP, the entire Datto community, and everyone committed to advancing the IT industry. Together, we’re building a stronger future, setting new standards, and reaching new heights in managed services – and we couldn’t be more excited for what’s to come!

Next-Level Growth

How George Burke Doubled His MSP Business with The 20

It started at an IT Nation event. George Burke was one of many MSP owners in attendance. His MSP, The Computing Edge, was doing okay at the time – but George wanted more.

His “a-ha” moment came during a meeting about peer groups. George realized his MSP growth strategy was missing something crucial: a structured accountability group to keep him on the right track.

So he got to work researching different organizations, and was impressed right away by The 20, with its focus on process and commitment to collaboration. George wanted in, but one concern was giving him pause…

From Doubt to Action

Becoming a member of The 20 would mean making significant changes to The Computing Edge’s core business model and operations. With 1000+ endpoints to manage, adopting a whole new approach wouldn’t be easy. But would it be worth it? George looked at what the MSPs in The 20 were accomplishing, and his heart and mind told him the same thing: Go for it!.

Putting his reservations on hold, George moved forward with onboarding. Working closely with The 20’s expert and always-friendly team, George ensured that both his clients and employees experienced a smooth transition. It also didn’t hurt that The 20’s built-out RMM and PSA tools – including light set-up pieces, scripts, and ready-to-use documentation – greatly reduced the learning curve and set up George and his team for a seamless integration.

From Action to Results

Once fully on board, George’s doubts started giving way to results. First, he discovered the true power of marketing. He’d known for some time that his MSP under-utilized marketing, but working with The 20’s world-class team of marketing experts opened his eyes to a whole new avenue for growth.

Second, he made a series of long overdue changes to his business model, some of which were directly inspired by conversations with fellow members; he fixed his pricing to more accurately reflect the true value of his services, he replaced verbal agreements with formal contracts, and he began to leverage Hardware as a Service (HaaS) to drive a 40% revenue increase in just one year. Naturally, George was thrilled:

“We have been providing managed services for well over twenty years now, but joining The 20 has helped us grow in ways we never thought possible.” – George Burke

Finally, George traded in his tech-focused perspective for a strategic business mindset. Inspired by the example of other members and The 20’s leadership team, he went ‘all in’ on his MSP’s growth, even when that meant leaving his comfort zone or changing his established routines. The results?

Working with The 20 helped George grow his MSP’s annual revenue from $1.4 million to $2.7 million in just 1.5 years, effectively doubling his business.

After selling The Computing Edge to The 20 in April of 2023, George is now thriving in his new role as VP of Regional Sales. Looking back on his journey, he’s grateful he found the courage to make big those big operational changes. Turns out they were worth it – and then some!

Grow Your MSP with The 20!

Questions about growing your MSP? Let’s Talk!

3 Takeaways from DattoCon 2024

DattoCon 2024 was fantastic. The 3-day event, which took place last week at the lovely Fontainebleau Hotel in Miami Beach, Florida, brought in a record number of attendees. It was the perfect example of what happens when you get a bunch of smart and driven people in the same room to tackle common challenges and share their best ideas – pure magic!

If you’re not already attending shows like DattoCon – at least one or two a year – you’re missing out. Your MSP is missing out. Beyond the content itself, there’s something unbelievably motivating about being around other MSPs. If you’re on the fence about attending a reputable industry event, go for it – and thank us later.

But if you missed out this time round, all is not lost. We’ve got you covered with 3 Key Takeaways – insights too good not to share with the MSP community at large. Enjoy!

Takeaway #1 – There’s still plenty of room for smaller MSPs.

Industry giant and CEO of Kaseya, Fred Voccola, took the stage at DattoCon and delivered an eye-opening presentation on what’s been happening in our industry – as well as things to come. Fred covered a lot of ground, and we’ll just zoom in on one key insight here:

There’s still room (and opportunity) for smaller MSPs – and lots of it!

MSPs worth $1M or less – even less than $500k – are in a position to thrive in the coming years. Of course it will require the right strategy, but the conditions are right, and the opportunities are there.

Consider this: there are, as Fred reported, a lot more MSPs getting started than getting acquired – more than 3x more to be exact. In short, yes, the MSP industry is consolidating – just not nearly as quickly as it’s proliferating. There are multiple reasons why this is so…

First, businesses’ IT needs continue to grow in number and complexity. What were formerly aspects of IT (e.g., compliance, backup, security) are now their own distinct categories, requiring specialized services and focused attention. As a result, most (73%) of the new MSPs on the block are “specialized,” offering expertise and support in one or two key areas.

Second, MSPs are facing a huge and growing TAM, or “Total Addressable Market,” which refers to all the revenue they could generate by serving every potential customer. Simply put, companies need MSP services – and more than ever – meaning there’s plenty of business to go around.

Finally, as Fred shared in his presentation, “small-cap M&A” (EBIDTA < $750k) is exploding, on track to nearly double last year’s number of deals. Smaller MSPs can be attractive acquisition targets, especially for companies seeking to add key expertise or access new markets quickly.

Bottom line: There’s still plenty of room for smaller MSPs, despite what consolidation and the rise of MSP platforms might have you thinking – but success will require playing your cards right, a sound M&A strategy, and a well-defined market niche.

Takeaway #2 – MSP growth is personal growth.

During his talk at DattoCon last week, The 20’s own Tim Conkle (founder & CEO) passed out little mirrors to the MSPs in attendance. He told them: If you want to see the solution to your MSP’s biggest challenges, open your mirror and take a good, hard look.

Tim didn’t mince words, and that’s because he’s speaking from experience. Tim spent almost two decades struggling to grow his MSP business. During that time, his entire focus was on changing his business – tweaking tools and processes till the cows came home. But it wasn’t until he did something far more radical that things took off: change himself.

To get more concrete, Tim changed how he conceptualized his role as leader of his MSP business. He replaced a my-way-or-the-highway mentality with a we’re-stronger-together philosophy. He kicked ego to the curb and began delegating, trusting, and connecting. He started spending less time perfecting his stack, and more time on sales and marketing.

The result? Tim’s MSP took off. His reminder to MSPs last week was a hard truth most business owners need to hear: if you want to take your MSP from surviving to thriving – from good to great – you will likely have to start with the person in the mirror.

Takeaway #3 – This industry is on the brink of something big.

After attending DattoCon – after 3 days of hearing from some of the channel’s best and brightest – we’re more convinced than ever:

This industry is on the brink of something big – a major leap forward in the way IT support is done, the likes of which we haven’t seen since the move away from break/fix two decades ago.

We’re not just talking about consolidation either. We’re talking about concerted efforts to solve the ‘profitability problem’ that’s been hampering MSPs for decades. We’re talking about radical progress in how we integrate AI and automation into our core business processes. We’re talking revolutionizing service delivery to allow for unprecedented

scalability.

MSPs are evolving – and so are the skills required to run a successful MSP. Don’t get left behind. Schedule your call with The 20 to discuss your MSP’s future.

Join or Sell? Our Advice to MSPs

It’s no secret – M&A activity in the MSP space has once again heated up. After a minor lull following the historic dealmaking in 2021, we’re seeing a near return to the record-setting levels of that watershed year.

This is all to say: if you’re an MSP owner, you might be feeling some pressure to sell – to ‘get in on the action’ while the going’s good. A few months back, we put out an article about whether to sell now or later. Check it out if you haven’t.

In this post, we’re exploring a slightly different question – a question that’s relevant to any MSP thinking about entering the M&A arena, and especially relevant to those who’ve singled out The 20 as a potential buyer:

“Should I sell my MSP to The 20 now or become a member of The 20’s growth platform/peer group and sell my company at a later date?”

Before we get into the nitty-gritty, we want to share our general viewpoint on this matter. The truth is, if your MSP isn’t a member of our growth platform, The 20 MSP Group, you should give some serious thought to joining the group before approaching the table for a deal. Keep reading to find out why.

Join First, Sell Later

Does selling to The 20 right away make sense for some non-member MSPs? Yes! In fact, our most recent acquisition brought such an MSP into our tent. But for the majority of MSPs, it’s a good idea to join our peer group before engaging The 20 as a buyer. Here are eight reasons why…

Reason #1: Your MSP Isn’t Big Enough!

The first reason to become a member of The 20 MSP Group before selling your MSP is straightforward – your MSP isn’t big enough to secure a favorable deal (or any deal at all).

Size isn’t the only thing we’re looking for in an acquisition candidate, but it is an important consideration. MSPs below a certain revenue threshold simply aren’t worth buying, as they haven’t achieved the operational maturity and inherent scalability that larger MSPs possess.

To get concrete, if your MSP is pulling in less than $1 million in annual revenue, chances are, you’re too small to secure a deal with us – and with most prominent buyers for the reasons mentioned above.

The 20 MSP Group was created to help small and medium-sized MSPs grow and scale faster than the competition. So, by becoming a member, you can fast track your MSP’s growth, and achieve ‘sellability’ a heck of a lot faster than you could working alone on an island.

Reason #2: Your MSP Could Be Even Bigger!

Let’s say your MSP does pull in $1M+ in annual revenue. Does that mean it’s a good idea to sell the company to The 20 – or another buyer? Not necessarily.

Everyone’s circumstances are different, and if you’re desperate to exit the MSP game, then who are we to tell you to hang on another couple of years? That said, it’s important to keep in mind that deal size does not increase linearly with MSP size. In other words, if a $1M MSP can expect to secure a $5M offer, that doesn’t mean a $5M MSP can expect to secure the same multiple – i.e., a $25M offer.

As MSPs grow larger, they achieve greater economies of scale, efficiency, and scalability, resulting in exponentially higher valuations (for more details check out our free M&A guide).

To break this all down in plain English: Becoming a member of The 20 MSP Group can help your pretty big MSP get really big, and, as a result, secure a much better deal when you decide to make your exit.

Reason #3: Accelerate Growth with a National Footprint

When you become a member of our group, your small to medium-sized MSP is effectively plugging into the power of a national company. With our 100% US-based, 24/7 live-answer support desk and robust national footprint, we empower our MSP members to take on larger clients with multiple locations. We also support members with branding, marketing, and sales, giving your business the exposure it needs to grow.

In short, if bigger MSPs get better deals, it’s in your best interest to get as big as possible as quickly as possible (unless of course your number one priority is simply getting out). Joining The 20 helps you do exactly that.

Reason #4: Community! Fun! This sh*t is awesome!

Running a business can be a lonely journey, which is why joining The 20 can be such a refreshing experience for MSP owners who’ve gotten used to struggling ‘on an island’ – to the extent that anyone can get used to such a thing!

Newer members are consistently blown away by how much the MSPs in our tent communicate and collaborate. Check out this 2-minute video to hear one of our current members speak about The 20’s unique culture and ‘the power of the people.’

There is of course immense business value in having a large community of likeminded MSP owners who are ready and willing to help you out. But there’s another perk worth mentioning – it’s a lot of fun. Or, as we prefer to say, this sh*t is awesome!

So, if you’re looking to sell because you’re feeling burned out, or just sick of the IT business, know this: joining The 20 can give you a radically different entrepreneurial experience, one defined by less busy work and stress, and more camaraderie and growth.

Reason #5: Derisk the Deal

One of the biggest risks when selling your MSP is a cultural mismatch with the buyer. Did you know research suggests that culture is the cause of 30% of failed integrations?

If you’re considering selling your MSP to The 20, joining our peer group before doing so allows you to experience our model, culture, and processes firsthand. That’s because our members adopt our business model – we need the MSPs we help to be on the same page operationally speaking, as it makes it possible for our support desk to provide excellent service across the board.

Plugging into our system as a member ensures that if you do eventually sell your MSP to us, the integration will be seamless, and you’ll have complete confidence in the decision. With other buyers, like private equity firms, it can be hard to build this level of trust.

But don’t just take our word for it; visit our MSP acquisitions page for video testimonials from folks who sold their MSP businesses to us.

Reason #6: Focus On/Find Out What You Love

We give our MSP members a lot, but perhaps the single most important asset we can give you is more time!

MSP owners are typically bogged down by busy work. But not our members. With our support desk handling up to 90% of your MSP’s tier 1-3 tickets, you and your technical team will have significantly more time to tackle higher-value projects and initiatives.

In this way, joining The 20 gives you an opportunity to figure out what it is you really love doing in the MSP space. This means when you do sell your MSP, you’ll have a better idea of what kind of role you want to step into – if any.

Reason #7: Avoid the Woulda, Coulda, Shoulda…

Before selling your MSP, don’t you want to see just how far you can take your business with the right tools and support? Joining The 20 gives you access to proven processes and growth strategies that maximize profitability. Selling without ever leveraging these resources might leave you wondering, “What if I could have done more?”

Reason #8 – Second Wind for the Win!

Finally, you may find that joining The 20’s growth platform revitalizes your passion for your MSP business. With a better work/life balance, more success, and fewer operational headaches, you may decide you’re not ready to sell after all. Just think – you could enjoy several more years as a business owner, with the added bonus that when you do sell, your MSP will be worth significantly more.

Final Thought

As you can see, there are plenty of reasons to consider becoming a member of The 20 before seeking an M&A deal. But at the end of the day, your ideal exit plan will be just that – yours.

To figure out what the best path forward is for you and your MSP business, we recommend sitting down with Tim Conkle, The 20’s CEO and the visionary behind our M&A strategy. To set up your one-one-one with Tim, fill out this short form with basic info about your MSP business and we’ll get back to you in a jiffy about scheduling up your call.

It’s About Time!

How The 20 Helped Andy Gainor Get More of What Matters

Andy Gainor‘s career in the MSP space started with a bang. As Sales Manager for Integrated Technology Services (ITS), Andy used his sales acumen to propel the Charleston-based MSP to new heights, and within a few years, was rewarded with a promotion to VP.

A Sobering Realization

Inspired by ITS’s early success but nowhere near satisfied, Andy was prepared to do just about anything to help his company remain on a path of rapid growth – or so he thought. Andy did a deep dive into the industry to find out what it would take to get to the next level – to become a truly elite MSP with robust operational maturity, substantial revenue growth, and market-leading profitability. His research led him to a sobering realization…

Taking ITS to the next level would not only take significant financial investment, but years of hard work mastering various tools and perfecting operational details.

Plus, there was the notoriously high turnover rate among MSP employees, which would make managing a support desk a constant struggle.

Andy still wanted great things for ITS, but not if it meant giving up his free time – and maybe even his sanity! He’d seen enough burned-out MSP owners to know that chasing success at all costs was a recipe for disaster. But what were his options?

The 20, The One!

Andy went back to the drawing board to look into a different path to the
top, one defined by partnership and collaboration. He’d heard about peer groups and MSP co-ops, and started his search for ‘the one’ – the organization whose culture, operations, and expertise would help ITS conquer its biggest business challenges and unlock new growth…

In his search for ‘the one,’ Andy came across The 20, a forward-thinking group of MSPs determined to reach – or remain at – the top twenty percent of the MSP industry.

The 20, with its US-based 24/7 help desk and turnkey solution of proven tools and processes, offered its MSP members a way to scale operations rapidly without drowning in busy work.

More Time, More Growth

After becoming a member of The 20, Andy and his team quickly discovered that an MSP’s most valuable resource isn’t its technology, but its time. All the time Andy and his team would have spent on staffing, managing a help desk, and putting out fires now went into strategic growth initiatives. While most MSPs’ growth slows considerably after an initial burst, ITS experienced the opposite:

As a member of The 20, ITS grew top- line revenue 6x in under 6 years, evolving from a competent local MSP to an operationally mature MSP with a robust regional presence.

Behind this dramatic growth was a fundamental shift in mindset. When Andy and the ITS leadership team were going it alone, the focus was on doing more — working harder, not smarter. After joining forces with The 20, it soon became clear that the key to MSP success isn’t doing more, but doing a few things really well – and effectively delegating the rest.

In Andy’s case, this meant refocusing on his passion: sales. With The 20 taking care of operational details, Andy was free to work his magic, maintaining a 33% close rate for all first-time appointments!

Andy’s journey with The 20 underscores a vital lesson many MSP owners never learn: sometimes the cost of achieving a goal on your own can overshadow the benefits. Teaming up with The 20 allowed Andy and the ITS team to achieve dramatic growth without surrendering their sanity to the operational grind.

And The 20 didn’t just help ITS grow; it also provided the MSP with a fruitful exit route when the company’s owners decided it was time to sell the business. Today, Andy is happy in his new role as VP of Regional Sales for The 20 MSP. He’s still working his magic — and this time, it’s on a national stage.

Grow Your MSP with The 20!

Questions about growing your MSP? Let’s Talk!

More Than a Peer Group: How The 20 Helps MSPs Shine

Your MSP can’t survive on an island. Or maybe it can. Maybe, just maybe, you can, without strategic partnerships, without peer groups, without industry events, without any of that, hang in there and eke out a living long-term. Maybe.

But you don’t start a company because you want to be like ninety-nine percent of people, struggling to make ends meet. If you’re like most of the MSP owners we encounter – including the 150+ MSP owners in The 20’s tent – you want to build something great.

We started The 20 because we know most of you small and medium-sized MSPs out there have big dreams – but not necessarily the means to achieve them. But just what is The 20? It’s a “peer group,” yes – or if you like fancy terms, a “business consortium,” but it’s much more than that. So much more…

The Pain Points of the Lone Wolves

MSPs working alone ‘on an island’ face a litany of challenges that can severely limit their growth. Let’s talk about some of the most common pain points plaguing standalone MSPs.

Not-So-Smooth Scaling

MSPs working alone struggle with scale (i.e., the ability to adjust to increasing/decreasing demands effectively). Whether it’s scaling up services to accommodate more/larger clients or scaling down services during a slow period, smaller firms have trouble finding the ‘sweet spot’ between two extremes:

  • Fully reactive scaling where you scramble to adjust your services to meet a change in demand.
  • Fully proactive scaling (aka the ‘if you build it…’ approach) where you build out capabilities to handle more/larger clients before you’ve even landed them.

These approaches are fundamentally flawed for obvious reasons; fully reactive scaling leads to inefficiencies, stress, and poor service delivery, while fully proactive scaling can easily result in wasted resources. Finding the happy medium between these two ineffective approaches is extremely challenging for a smaller MSP that relies primarily on hiring as a method of scaling.

Sales & Marketing Blues

Sales and marketing have been – and continue to be – weak points for MSPs, especially small and medium-sized firms with limited resources. But from our vantage point, the reason for this has changed somewhat.

In the early days, MSPs’ sales and marketing efforts were lackluster for two reasons. One, the initial ‘gold rush’ in managed IT services meant that MSPs could achieve a burst of growth on the back of demand alone, without needing to sell and market their services in a savvy manner. Second, many MSPs are run by technical-minded individuals who often overlook the value of sales and marketing, resulting in minimal time and effort devoted to these areas.

But times have changed. As our industry became more competitive, even the more stubborn and marketing-averse MSPs came to accept the necessity of both sales and marketing. So, why are MSPs still underperforming on these fronts?

The new answer to this question is that MSPs – especially small and medium-sized ones operating on an island – simply don’t have the time or resources to sell and market effectively.

This all ties back to scale. When your operations lack scalability, keeping pace with client needs is a full-time job – and then some! MSPs operating in isolation are typically drowning in day-to-day work; there simply aren’t enough hours in the day to keep up with end client requests and sell/market services effectively.

Trial-and-Error (Emphasis on Error!)

We see this all the time: MSPs that come to us for help are stuck in the ‘experimentation phase.’ To be clear, experimentation isn’t a bad thing per se, as growing a successful company, regardless of industry, takes risk-taking, experimentation, innovation, etc. However, it’s a question of degree.

The truth is, the one thing that sabotages an MSP’s growth more than anything else is endless tinkering. Tinkering with tools. Tinkering with processes. Tinkering with team make-up. The tinkering isn’t the problem, but the amount of tinkering certainly is. Perhaps it’s a product of a ‘technical’ vs. a ‘business’ mindset. Or maybe it’s more of a matter of not knowing the alternative. But the bottom line is clear:

MSP executives often undermine their company’s growth by experimenting endlessly with different combinations or tools and processes.

This endless quest for ‘the perfect stack’ comes from a good place – the desire to be excellent – but that doesn’t make it any less detrimental to growth. Why? Because it’s a gigantic time-suck!

The 20 to the Rescue!

The 20’s business model is built around helping small and medium-sized MSPs overcome their primary pain points. We’re not the only peer group/growth platform around, but we are unique in several respects. And what makes us different makes all the difference…

Scaling Made Easy

When you become a member of The 20, your scaling problems quickly become a thing of the past. How do we help your MSP become more scalable? Two ways:

First, we give you standardized – and well-documented – processes. These processes are efficient, clear, and repeatable, all key ingredients for scalability. If you’re intent on doing things your way, The 20 isn’t right for you. The strength of our group comes directly from the strength of our individual members’ buy-in. We need everyone under a single operational umbrella and service delivery model for our Support Desk to do what it does, which is deliver speedy and stellar support to all our members’ end clients.

The second way we make your MSP more scalable is by giving your clients unlimited access to our acclaimed, 100% US-based, 24/7/365 Support Desk and Network Operations Center (NOC). With our large team of experts at your back – answering the phone and resolving your clients’ issues swiftly and efficiently – you can confidently expand your client base without the headaches of hiring and training additional staff. It’s a beautiful thing.

Moreover, you can take on bigger clients with full confidence that you have the bandwidth to support them. One of our current members, Mark Adair of Adair Technology, recently spoke about this particular benefit of membership, and its relationship to sales:

“Being a member of The 20 has helped us operate bigger than we are really. Coming from a small team where we handled every issue, it created problems for us when it came time to scale. We’d do sales and then be afraid that we couldn’t support the sale…With The 20, we’ve been able to utilize the help desk. We can sell and know that we can service it after the sale.”

This is music to our ears, as our primary goal is to allow MSPs to be ‘bigger than they are.’ While standalone MSPs can’t take on larger clients without having to worry about scaling services accordingly, our members can approach companies with hundreds of endpoints and say: We’ve got you!

But what makes Mark so confident that The 20 will take great care of his clients and preserve his MSP’s pristine reputation? Let’s talk about that!

Not Outsourced – Extended.

When you become a member of The 20, you are, in a very basic sense, choosing to outsource a significant portion of your ticket load to our 24/7, US-based Support Desk. In fact, we can take on 90% of your tickets, freeing you and your team up to tackle higher-value projects.

But ‘outsourcing’ can imply handing over your business to some distant third-party that doesn’t really understand your team, your clients, or your MSP business. It can also be associated with underwhelming service.

That’s why we prefer to call ourselves an extension of your team, as we believe that better captures the role we play for our MSP members. For one, we get to know you and your MSP business through in-person events like Propel and VISION, close collaboration, and dedicated account managers.

Second, our MSP members are operationally aligned, and so, even though we take time to learn how your MSP works, this learning curve is greatly reduced by the simple fact that we largely standardize our members’ operations. MSPs that belong to The 20 are singing from the same sheet of music, which means our Support Desk doesn’t have to juggle a bunch of disparate workflows.

Finally, we have a robust national footprint with boots on the ground in nearly every state (soon to be every). That means we can provide onsite assistance to our MSP members’ end clients, just like – that’s right – an extension of your own team.

Many Heads > One

This one is huge. Simply put, MSPs in The 20 tend to be smarter, faster, and more adaptive than standalone MSPs. Why? Because they have each other!

When Tim Conkle founded The 20, he had a hunch that a bunch of competitors could become each other’s greatest resource. Turns out they can – and then some. We are time and again amazed by how much our members talk and help each other out. In an industry as big and fast-moving as ours, having a group of people who are…

  1. Trying to do what you’re trying to do (grow a successful MSP business)
  2. Approaching things in a similar way (using the same service delivery model)
  3. Willing to share what they know

…isn’t just a nice thing to have; it’s a game-changer! One of our current members, Seana Fippin, shared how much this community’s commitment to collaboration has helped her MSP, Red Box Business Solutions, reach new heights:

“We’ve been a 20 partner for about six years now, and have grown with the organization significantly. We think that the community here is really remarkable – there’s something magic about that collaboration and strength in numbers, both from working with vendors, with partners, working on best practices and strategies.”

Well said, Seana!

The Whole Kit and Kaboodle

While the competition continues to ‘tinker,’ our MSP members hit the ground running with a battle-tested stack and business model. After our recent acquisition of Collabrance, we can now support MSPs on either a Kaseya or a ConnectWise tool stack, but here’s the key: whatever tools you use, we will bring your operations into alignment with our single service delivery model.

This means you and your end clients can expect a seamless, integrated experience across all essential services like RMM, cybersecurity, backup and disaster recovery, and more. No more trial-and-error – just smooth sailing and smooth scaling!

Additionally, with our network’s size, we can get your MSP access to the best pricing through economies of scale, while also taking on the responsibility of managing vendor relationships. One of our members, Chris Engler of Engler IT, commented on how much joining The 20 has helped him with vendor management:

“There’s always technology providers knocking at my door…It’s a whole full-time job to try to sort through these guys, so that you can find good technologies – you have to vet them, make sure they’re going to do what they say they’re going to do…The 20 helps us do that very efficiently.”

That’s the name of the game, folks – efficiency. When you join The 20, your MSP gets a fully integrated and optimized business model: everything you need, all in one place. This prevents major operational hiccups while allowing you to sidestep the decade (or more) of trial-and-error most MSPs have to endure before achieving operational maturity.

Time to Shine

All of the above brings us to our last – and arguably most important – benefit of becoming a member of The 20: you get your time back!

As previously mentioned, most MSPs are severely hampered by a lack of time. They’re bogged down by everyday tasks, and as a result, don’t engage in those high-impact and strategic initiatives which really drive new growth. Yes, we’re talking about sales and marketing, but we’re also talking about enhancing operational efficiency, strengthening client relationships, and investing in new technology.

In essence, we lift MSP owners up from the ‘muck’ of the daily grind, so they can view their businesses more clearly as a whole. Just ask Greg Padgett, a current member and CEO of Eagle’s Wings Technologies:

“When I met him [Tim Conkle, CEO of The 20], I had determined I was tired of just making myself a job; I wanted a business. Joining The 20 helped me to get out of that hole that I had built for myself, and be able to stand up above the company and look into it and see what needed to change, and make those hard decisions to make those changes.”

That’s the long and the short of it right there: getting away from working in your MSP so you can start working on it – and start growing it.

Stronger Together

Our motto here at The 20 is “stronger together,” because that’s exactly what we are. Compared to the competition, the MSPs in our group can do more with less, scale faster, and grow bigger.

We’re a peer group, sure. But we’re also a community, a growth engine, a winning and scalable business model, a knowledge factory, and your MSP’s ticket to the next level.

Get in touch today to learn more about our approach and to see if your MSP meets our requirements for membership.

MSP Acquisition Spotlight – Kevin Peterson

Discover firsthand experiences from Kevin Peterson, a former MSP owner, on adjusting to life within a larger organization, finding the right buyer, and embracing a new work-life balance after selling his business to The 20 MSP.

1. What’s it like not being your own boss anymore? Did that take some getting used to?

 

It took a while to learn that I didn’t need to or get to make all the decisions. It’s been freeing knowing that I respect my boss, Ken Pecot, and knowing that he is doing what is right for The 20. He help keeps me accountable and moving in the right direction.

 

For the first time in my life, I have a team of peers that I am learning from and growing with. We have some reallllly smart people that I love working with.

 

2. Selling your MSP is a big decision. Where did you go for guidance and advice?

 

My wife and I talked and prayed about the decision to sell. I also talked to a few close advisors that understood the M&A process intimately. I looked at the goals we had in life and for our company and realized that it was time to make a big decision to sell and go in a different direction.

 

3. How difficult was it to find the right buyer? What made you choose The 20 MSP in the end?

 

I had a few other companies inquire about purchasing my MSP but they weren’t the right fit. I had very close relationships with Tim, Ken, and other companies that were rolling up at the same time. We were able to talk together about the benefits of rolling up and doing something amazing together. Being in business with people I know and trust is very important to me.

 

4. How did you approach sharing your M&A plans with your team and clients? Were you surprised by any of their reactions?

 

We shared with our team about a month before the acquisition. We shared with all of our clients day 1 of acquisition. They were very supportive after explaining the reasons for our rollup and the extra benefits to them.

 

5. What’s changed the most in your life since selling your MSP?

 

My wife, Barb, and I travel a lot more.

 

6. Since selling your MSP, is there something – inside or outside of work – that you’ve been able to focus on more?

 

I’m able to focus on enabling the National Project Team to execute on projects for our clients. I don’t have to deal with constant interruptions and changing priorities. The ability to focus makes our team and me much more effective.

 

7.What do you miss most about running your own business?

 

The sleepless nights, wondering if a major client would leave and drop our revenue by 20%, being afraid of a key employee leaving and taking other staff and clients with him, and thinking I had to do it all.

 

Wait, did you say what I miss or what I don’t miss???

 

8. What’s your best advice for someone thinking about selling their MSP?

 

Figure out your medium and long term goals in life, for your company, & your family. Then see if your current company and direction will get you there. If not, make a change.

 

9. Can you talk about your current role? How has your day-to-day changed since selling your company?

 

As VP of the National Project Team my job is to set priorities, drive metrics, and hold the team accountable for our results. This is done by working with our team members, making sure they have the resources to succeed, and helping them to focus and prioritize. My days are about my team and what they need. Our job on the NPT is to execute on our projects right the first time, communicate well with our clients (both internal and external), and deliver a great client experience.

 

10. In your opinion, what’s the most important quality for success?

 

The ability to juggle 12 running chainsaws at the same time for 3 minutes straight. It’s either that or perseverance.

 

11. What’s something most people don’t know about you?

 

I was a Top 40 radio DJ right out of high school and I tried a radio name of “Kevin Thunder.” That ,and I am the “Eye Candy” of The 20…

 

12. Describe your dream vacation in 3 words…

 

Barb, a cruise, food

 

Ready to explore more about M&A? Visit our M&A tips page for valuable insights and guidance!