by Dan Astin
The statistics are daunting. A great percentage of SMBs and, in particular, MSPs and other tech services firms will never reach $5,000,000 in gross revenue. As such, growth through careful acquisition of other SMBs or their assets is a great way for MSPs to increase lead gen, sales and scale.
Here are 5 fundamentals — practical keys — to increasing the likelihood of success in pursuing acquisitions:
1) Assets v. Stock
Consider buying assets only. Acquiring assets without assuming liabilities may provide the greatest ROI at the most competitive price. Many times the seller just wants out, and the tribulations that led to the decision to sell are often better left behind.
2) Acquisition Entity
The decision whether to acquire through your existing entity or a NEWCO will depend on a variety of factors, including newly-enacted tax laws. Consult with your financial, legal and tax advisors to be sure you make the most beneficial decision.
3) Due Diligence
The “opportunity inspiration” of the deal often results in a rush to get the deal done. There is no substitute for caution through due diligence in an acquisition. First up, on every deal pursuit, there should be financial and other diligence depending on the nature of the deal. Consult your professionals to assist. Even basic diligence through review of financials and tax returns can help avoid wasted time and acquisition costs when the numbers don’t measure up.
4) Term Sheet
Assuming you get past the diligence stage, work with your professionals to draft a term sheet with the core deal components. Many times, once the parties have term sheet in front of them, one of the parties determines they are not on the same page after all and at the very least disconnects may be easier to work out. Going straight to an APA may be less cost-effective if the deal is not consummated. At the contract stage, parties often become intractable when their deal term expectations are not met.
5) Just Business
Remember that it’s a business deal. Becoming emotionally attached to the thrill of the “great” deal will color judgement and lead to disappointment if the deal does not close — or, worse yet, buyer’s remorse when unbridled enthusiasm wanes after closing and it becomes clear it wasn’t such a great deal.
Dan Astin is a business attorney and consultant with offices in Philadelphia, Wilmington and San Diego. He’s a Managing Partner of Ciardi Ciardi & Astin.
What do you do here at The 20?
Offer top-notch IT support as a Tier 1 Support Desk Technician.
Describe The 20 in three words…
Happy
Dynamic
Progress
As a kid, what did you want to be when you grew up?
I always wanted to be a crazy scientist/inventor.
What’s the most challenging thing about your job?
Accepting that at the end of the day, you might not be able to have resolved all issues.
What do you consider your greatest achievement?
My daughter. Despite her being half a world away, we remain in contact.
What do you think is the most important quality necessary for success?
Being aware of both strength and weakness and learning from both success and failures.
What do you like most about The 20?
The happy work culture.
What do you like to do in your spare time? / What are your hobbies?
Messing with computers
Playing games (both board and computer)
Doing statistical/technical analyzing
Watching movies
Where are you going on your next vacation?
A cruise in the Caribbean, including dolphin swimming and ruin exploration.
What’s your top life hack?
Use data to form conclusions. Don’t use conclusions to judge data.
Interested in working with Bryan? We’re hiring talented technicians! Check out our Careers page for more info.
Tell us a little about your MSP…
Carefree Technology was started in California in 2001. In 2014 we moved to Utah to be closer to family, so we now have offices in California and Utah, and thanks to The 20, we have clients in Washington, Oregon, California, Utah and Colorado!
How long have you been a member of The 20?
We joined The 20 in November of 2018.
Why did your MSP originally look to partner with The 20?
We joined The 20 because it was time to grow our business. In 2001, when I quit the best job I ever had, it was so I could reclaim my time and be an active, present influence in raising our 4 kids. As our company grew, I noticed that the more employees we had, the less time I could spend with my family. Somewhere along the way, I made a conscious decision to have a “lifestyle business” so I could maintain my desired quality of life.
In a space of 4 months in 2018, 2 of our kids got married and another left for college. Now that our kids are leaving, it is time to change our focus from maintaining a lifestyle, to preparing for retirement by building a strong, profitable business and The 20 was perfectly positioned to provide the leverage we desired so we wouldn’t have to build and manage our own internal support desk.
Tell us about the biggest change in your business since joining The 20.
Our biggest change since joining The 20 is largely psychological and emotional. We no longer look at a large opportunity and think, “That’s too big for us.” Now we look at those larger environments with a hopeful expectation that we can provide what others cannot.
What do you like most about being a member of The 20?
It’s a toss-up between the Support Desk and the community. I love reviewing ticket notes and activities provided by the Support Desk that I didn’t have to be involved with. However, The 20’s partner community is really unique. I have developed many close relationships over the years with “friendly competitors,” but the level of camaraderie in The 20’s partner community is truly special.
What do you think is the most important quality necessary for success?
To be successful, you need to know what has lasting value and importance to you and your family and then work towards that goal every day. As long as you are working towards a meaningful end, you are successful regardless of how long it takes. The moment you identify what is important and move in that direction, you are a success.
What are your biggest business challenges?
With all the demands on our time, our largest challenge is always maintaining a consistent focus on sales and marketing activities.
What are your areas of focus for 2019?
Working with The 20 has opened the door to much larger clients. Our focus for 2019 is learning how to work with these larger, more complex environments so we can continue to add more of them.
What advice would you share with an MSP looking to scale their business?
Be honest about your shortcomings and find people or organizations who are strong where you need help. For us, that was joining The 20. It has been an absolute game-changer!
What book are you currently reading?
My ADD makes reading quite a challenge; too many shiny things around. However, I love audiobooks on 2x or even 3x speed. This month I have listened to the following titles: The Road Less Stupid: Advice from the Chairman of the Board by Keith J. Cunningham, The Speed of Trust by Stephen M. R. Covey and Anxious for Nothing: Finding Calm in a Chaotic World by Max Lucado.
Favorite blogs / podcasts
If I’m not listening to audiobooks, I enjoy listening to comedians like Jim Gaffigan or watching Good Mythical Morning with my daughter.
Interested in becoming a Partner? Click here for more information!
by Camden Rendon
Wondering if you should intern in college? Internships are fast-growing and more important than ever – for multiple reasons. Internships are proven to help students learn and prepare for the real world after college, because classrooms can only teach so much. Some schools and/or majors require internships in order to graduate, and some just encourage finding one (or two, or three) before graduation. Here at The 20, we completely support the learning process of students, and have opened up three summer internships this year to help in that process. It’s not to be taken lightly – we know that we are helping to shape the next generation of professionals. Here are five reasons that you should intern in college – bonus points if you want to work with us! ????
Network and Learn Under Professionals
Though there are many reasons you should intern in college, this one is reason enough to get an internship. I say this to every new grad I meet – you NEVER know who knows who and who you will meet. Connections go SO FAR in the workforce, to the point that some people hire solely off of referrals. Building connections and networking with people is a great way to learn about tons of opportunities in your field. In addition, learning under industry professionals can be great for your resume. If you get a good mentor to coach you through your internship and teach you as much as possible, you will come out of the internship with information that you can apply in your next (potentially full-time) role. As an intern, it’s your responsibility to be engaging, prepared, and to soak up as much as possible, as there will be so much to learn.
Figure Out What You Want in a Career… and What You Don’t Want
Sometimes we don’t know what we want to be when we grow up – and that’s okay! College makes you feel pressured to choose a major that will fit in with a career, but what happens if you don’t know what you want to do? The best way to test out different roles is through internships. You’ve got to start somewhere to gain experience, and companies are pretty supportive of that. According to NACE, 81% of graduates report that internships helped them to shift their career directions by changing either the focus of classes or their major. You may have your heart set on a particular profession, but after working it for a summer, may decide that it wasn’t for you – or that you like something better. Your college years are the years to explore, make mistakes, and learn from them.
Real World Application
Let’s be real – your college classes and professors can only teach you so much while you’re sitting at a desk. You’ve got the brain knowledge, but what about the real-world application? No number of tests, pop quizzes, or projects will prepare you for what is required in a professional position. You will get to apply your textbook knowledge to things that you will apply in your day to day role.
Full-Time Opportunities Post-Graduation
It’s no secret that interns are usually the first to be considered if a full-time role opens up. According to Forbes, paid internships turn into full time job offers 60% of the time. Interns spend their time getting to know the company, the employees, and the position itself – meaning it’s the easy option when it comes to a full-time role. Companies can cut down on their spending for sourcing, hiring, and training a new employee, since the intern already has that knowledge. It’s important to be prepared, timely, and always give 110% throughout your internship.
Make Your Resume Stand Out
So let’s say for one reason or another, your internship doesn’t turn full-time. That does NOT mean that you wasted your time! Not only are you leaving there with actual, tangible experience, but you should also have some solid recommendations under your belt! In a sea of entry-level graduates and applicants, how can you make yourself stand out? By relating your internship experience to the next position! You’ve already got a leg up on the competition if you join an entry-level role with experience.
Want to join our awesome team? The 20 is hiring interns! Check out our open positions here.
by Dan Astin
1) Change in Control
One of the most important legal tips every MSP should know involves “Change in Control.” In the event of an acquisition or other change in control of the client/customer, the MCA and ancillary SOW’s remain in full force and effect. “Change in Control” means any sale, exchange, transfer, conveyance or termination of any equity or ownership interests in the client/customer, or any corporate, limited liability company or partnership reorganization, restructure, merger, acquisition, transfer of assets, consolidation or adjustment with respect to Client if the persons currently in control of the client/customer would no longer have such control after such event.
2) BAA Requirements
HIPAA requires a covered entity to enter into “business associate contracts” with business associates to safeguard protected health information and to restrict its uses and disclosures to those permitted by the contract or required by law. Business associates are also required to enter into business associate contracts with their subcontractors. Business associates are persons or entities that perform, or assist in the performance of, any activity involving use or disclosure of individually identifiable health information. 45 CFR §160.103. This includes, e.g., claims processing, data analysis or processing, quality assurance, billing, practice management, and accounting and legal services.
3) Cybersecurity Insurance
According to the Ponemon Institute’s “2018 Cost of Data Breach Study,” the average cost of a stolen or lost record is $148, while the overall cost of a data breach is nearly $4 million. In addition, the likelihood of getting hit with another breach within two years after the initial one is 27 percent.
As noted by FICO, businesses typically shun cybersecurity insurance for three primary reasons:
A) The organization isn’t investing in cybersecurity overall, despite an increase in threat levels.
B) Leadership believes the organization will never be the victim of a cyberattack because it is too small to be targeted, or they believe security systems will protect it.
C) Leadership doesn’t understand how cyber insurance policy premiums are estimated or what exactly is covered.
Generally, cyber policies include coverage for costs incurred for remediation in response to a data breach, liability for claims arising from the data loss or breach, fines or penalties imposed by law or regulation, and additional payment card industry fines and penalties.
Dan Astin is a Managing Partner for Ciardi Ciardi & Astin law firm and regularly represents and provides legal and business consultations to commercial creditors, litigants, contract parties, corporate debtors, importers/ exporters, MSP’s, small business owners, and trustees, in matters of commercial business practices, litigation, customs and international trade, bankruptcy liquidations, administrative law, foreign corrupt practices act FCPA, contract negotiations, business restructuring, IT, select domestic and international trade. Dan’s legal experience includes prior service in the U.S. Navy’s Judge Advocate General’s Corps, as counsel to the Commanding Officer of USS Constellation (CV64); concious objector hearing officer in the first Gulf conflict; prosecutor and defense attorney United States Navy; trial attorney with the United States Department of Justice, Office of the United States Trustee; Associate Council customs and international trade.
2019 MSP 501: Calling All MSPs!
Ever wondered how you rank against your peers? Well, now you have the perfect opportunity to find out as Channel Futures presents the annual MSP 501 ranking list.
The MSP 501 list recognizes Managed Service Providers (MSPs) from all around the globe among the world’s top 501 MSPs, so if you haven’t already entered, here’s what you need to know (and fast) while entries are still open:
More Than Just a Ranking…
For twelve consecutive years, Channel Futures has hosted the annual MSP 501 as a celebration of the world’s top MSPs. What first began as simple report derived from a selection of channel partners, has since evolved to demonstrate exactly how these MSPs earned their ranking.
Have You Applied Yet?
Just in case you haven’t, it’s not too late! While the process is far from quick and easy, you still have time to submit your online application here – entries close on Friday, 31 May at 11:59pm ET.
Channel Futures strive to make this process easier than before, so if you need help or have any questions regarding the Channel Futures 2019 MSP 501 List questionnaire – visit here for further information.
What’s in It for You?
Other than the glory, you’ll also receive a marketing package (to share with the world), an official award and special recognition at the annual gala awards (details below), VIP entry to the Channel Partners Evolution and of course, awesome media coverage across Channel Futures’ sites.
The Annual Gala Awards
Winners are to be announced at the MSP 501 Awards as part of the Channel Partners Evolution Conference, held at the Walter E. Washington Convention Center in Washington D.C. on Tuesday, 10 September 2019 from 5:30pm – 9:00pm. Join The 20 team there!
To find out more about the MSP 501 List, please visit here.
This month, we turn the spotlight this month on The 20’s Digital Designer, Ross O’Neal!
What do you do here at The 20?
I’m a Digital Designer, so I create sales and marketing collateral (digital and print), social media content, email blasts, internal documentation, fun stuff for the screens around the office, things like that.
Describe The 20 in three words…
Fun, Innovative, Unique.
As a kid, what did you want to be when you grew up?
First dude to play for the Cowboys and the Mavs.
What’s the most challenging thing about your job?
First thought is Hwy US-75 S. It’s also challenging to have a number of different types of projects going on at the same time. Lots of balls in the air, if you will. But I like wearing different hats and knocking things off my list one at a time. It’s not always super easy to think of a creative solution right away, but something usually hits eventually.
What do you consider your greatest achievement?
I’ve recently been finishing chapsticks at over a 50% rate.
What do you think is the most important quality necessary for success?
I think it’s a whole bunch of qualities.
What do you like most about The 20?
The fun, team atmosphere is truly unique. We laugh a lot and get stuff done. It’s actually fun to go to work.
What do you like to do in your spare time? / What are your hobbies?
Game of Thrones has pretty much taken centerstage at the moment. Oh, and Avengers: Endgame. I also like golf and working out. And if listening to The Ticket and looking at Twitter are hobbies, I’ll put those down too. So all that until football starts and then it’s definitely football.
Where are you going on your next vacation?
VEGAS!
What’s your top life hack?
I dunno, whatever you’re having trouble with you can probably just look it up on your phone.
Interested in working with Ross? We’re hiring a Graphic Design intern! Check out our Careers page for more info.
Plano, TX, May 20, 2019 – The 20, a leading business development group for managed service providers (MSPs), announced today that CRN®, a brand of The Channel Company, has named Ciera Cole, Chief Operating Officer, and Crystal McFerran, Senior Vice President of Marketing to its prestigious 2019 Women of the Channel list. The leaders on this annual list are from all areas of the IT channel ecosystem; representing technology suppliers, distributors, solution providers, and other IT organizations. Each is recognized for her contributions to channel advocacy, channel growth and visionary leadership.
“CRN’s 2019 Women of the Channel list honors influential leaders who are accelerating channel growth through mutually-beneficial partnerships, incredible leadership, strategic vision, and unique contributions in their field,” said Bob Skelley, CEO of The Channel Company. “This accomplished group of leaders is driving channel success and we are proud to honor their achievements.”
CRN editors select the Women of the Channel honorees based on their professional accomplishments, demonstrated expertise, and ongoing dedication to the IT channel.
Ciera Cole has supported the CEO across both The 20 and its sister company, Roland Technology Group, over the past 6 years and was essential in helping build the organization from the ground up. As COO, she acts as the integrator within the company between all departments and remains instrumental to the growth and scale of both The 20 itself and its MSP member network. Ciera studied business at Baylor University and later received her MBA from Southern Methodist University while working full-time at The 20. Click here to view Ciera’s press release and WOTC profile.
Crystal McFerran has been critical in her leadership of The 20’s strategic planning, demand generation activities, and go-to-market execution for managed service provider members. She is an accomplished marketing professional with over 15 years of experience in B2B marketing, demand generation, marketing communications, lead nurturing, content strategy and multichannel marketing for the IT industry. Click here to view Crystal’s press release and WOTC profile.
The 2019 Women of the Channel list will be featured in the June issue of CRN Magazine and online at www.CRN.com/wotc.
About The 20
The 20 is an exclusive business development group 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 world-class tools and processes, The 20 touts a proven sales model, a community of industry-leaders, and ultimate scalability. For more information, visit https://www.the20.com.
Follow The 20: Twitter, LinkedIn and Facebook
About The Channel Company
The Channel Company enables breakthrough IT channel performance with our dominant media, engaging events, expert consulting and education and innovative marketing services and platforms. As the channel catalyst, we connect and empower technology suppliers, solution providers and end users. Backed by more than 30 years of unequalled channel experience, we draw from our deep knowledge to envision innovative new solutions for ever-evolving challenges in the technology marketplace. www.thechannelcompany.com
Follow The Channel Company: Twitter, LinkedIn and Facebook
Copyright ©2019. CRN is a registered trademark of The Channel Company, LLC. All rights reserved.
The Channel Company Contact:
Jennifer Hogan
The Channel Company
[email protected]
The second ChannelPro event of the year found itself in Chicago, IL on May 2, with the special pre-day event hosted by The 20, Cytracom, Compliancy Group, and Deep Instinct on May 1!
The event kicked off with a pre-day workshop on The Building Blocks of a Mature MSP.
The 20 hosted this alongside Cytracom, Compliancy Group, and Deep Instinct. The workshop covered the top challenges MSPs face, go-to-market strategy, adding monthly recurring revenue, developing stickier client relationships, and more!
The seminar also included two panel sessions, including one highlighting successful MSP owners: Rob Boles of BLOKWORX, James Velco of Tech Noir Solutions, Will Foret of Spot Migration and Paul Redding of Carlin Bradley. The vendor panel session featured Chuck Everett of Deep Instinct, Dave Goldie of Cytracom, Marc Haskelson of Compliancy Group and Tim Conkle of The 20.
It was a full house and so much fun.
The theme was Bigger. Better. Business. and the jam-packed event featured presentations from some of the brightest minds in the business who shared their insights on the hottest tech solutions in the SMB marketplace today. IT consultants, VARs, integrators, and managed service providers of all types networked with peers, and got detailed information on the latest technology trends and solutions.
The event concluded with attendees honoring vendor sponsors with the following awards:
Best in Show: Datto
Best Cloud Solution: Webroot
Best Hardware Solution: Epson and HP (tie)
Best New Solution: Domotz
Most Innovative Solution: TruGrid
Best Partner Community: Datto
Best Software Solution: NinjaRMM, RapidFire Tools (tie)
Best Revenue Booster: Datto
Best Add-On Product: SherWeb
Best On-Stage Presentation: The 20
Best Solution Presentation (Platinum or Gold sponsors): The 20
Best Solution Presentation (Silver sponsors): NinjaRMM
Best Distributor: SYNNEX
Best Silver Selfie: ConnectBooster, Domotz (tie)
Best IoT Solution: Domotz
The next seminar will be held in San Jose September 4-5!
Spots are filling up fast, so interested attendees should register immediately here!
We hope to see you there!
Crystal McFerran, SVP Sales and Marketing.
The 20-hosted workshop.
Tim Conkle, CEO.
Tell us a little about your MSP…
Managed IT Systems is located in Athens, GA, and our field engineers cover about a 100 mile radius from there. We have been providing top-notch IT support services since 2005.
How long have you been a member of The 20?
Managed IT Systems has been a member of The 20 for just under 2 years.
Why did your MSP originally look to partner with The 20?
We initially partnered with The 20 because of the potential to grow our MID model and be able to offer more features, products, and services than we could alone.
Tell us about the biggest change in your business since joining The 20.
We have increased our annual revenue by over 35% in only one year. This was possible due to added benefits, especially the help desk. Our prospects see us as a much more complete, larger organization, which means we are able to be more competitive when bidding for services.
What do you like most about being a member of The 20?
The openness of communication between formerly-competing companies is astounding. On any given day, you can count multiple on-going conversations between companies from across the country that are geared toward helping solve a problem, offer a solution, or providing hands-on assistance.
What do you think is the most important quality necessary for success?
Perseverance. You have to be willing to put forth the same effort day in and day out, regardless of the outcome.
What are your biggest business challenges?
Getting more leads in the door has to be the number 1 challenge for us. Outside of that, struggling with client education – whether it is differentiating our services, explaining why we recommend a specific solution or service, or why they need to change their password regularly – is a challenge that we face each and every day.
What are your areas of focus for 2019?
Managed IT Systems is going to continue to focus on selling our MID service, but we are also going to push harder on managed security solutions as well as improve our cloud-focused offerings.
What advice would you share with an MSP looking to scale their business?
Take the leap and commit to becoming an Elite member so that you can take advantage of the help desk. The amount of time your company will gain back will allow you to focus more on new growth, better reporting, and perfecting your services.
What book are you currently reading?
‘How to Secure Office 365’ by Matt Katzer
Favorite blogs / podcasts
Linus Tech Tips – YouTube, MSP Insights
