Advantageous Approach for Like-Minded
Solution Provider Owners

Many Buyers and Sellers move straight to “Acquisitions,” passing right over “Mergers.” In the right circumstance, acquisition is a valid approach, but there is another option – merger of equals. For the right group of like-minded Solution Provider owners, a merger of equals can prove to be a materially more lucrative approach than simply being acquired.

Service Leadership has led and advised on many successful mergers of IT Services companies using the Phases of Value Creation Strategy outlined below. This strategy provides companies seeking to merge with the framework for deciding, executing and successfully exiting.

Phases of Value Creation Strategy

Phase 0: Valuation & Plan

  • Mutual valuations – determine relative shares of Newco
  • Develop, present and discuss “Best-Middle-Worst” (BMW) execution plan through Exit phase
  • Design and support agreement (or not) on merge structure
  • Decide if continue to Phase 1

Phase 1: Deal & Merge

  • Agree or not on details of deal structure
  • Support negotiation of merger agreement
  • Oversight on the merge project
  • Support the close

Phase 2: Integrate & Prove

  • Advisory and oversight on integration
  • Advisory on gaining economies of scale and driving to Best-in-Class performance, use SLIQ
  • Quarterly Service Leadership Index© benchmarking

Phase 3: Growth

  • Continued advisory on driving Best-in-Class profit and growth
  • Sequential buy-side advisory engagement
  • Advisory on scaled sequential integrations

Phase 4: Exit

  • Sell-side advisory engagement – market and sell the company

Service Leadership welcomes the opportunity to discuss the prospects of a group self-merger with interested owners and executives of MSPs worldwide. Click “Contact” below and a Service Leadership Senior Client Advisor will be in contact with you.

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