The Consolidation Happening in Your Market
Over the past decade, private equity firms have been buying up managed IT providers at an accelerating pace. The playbook is straightforward: acquire a dozen small MSPs, merge them under one brand, cut costs by centralizing operations, and sell the combined entity at a higher multiple a few years later. It is a financial strategy, not an IT strategy.
For the PE fund, this is a perfectly rational approach to generating returns. For the businesses who rely on those MSPs, the consequences are less appealing: longer response times, rotating technicians who do not know your environment, rising prices, and rigid multi-year contracts designed to prevent churn during the hold period.
The Greenville-Spartanburg market is not immune to this trend. If your IT provider has changed names, changed ownership, or started pushing longer contracts and higher prices in the past few years, there is a good chance private equity is involved. Below is a category-by-category comparison of what that means for your business.