The MSP community came together in Chicago for IT Nation Grow Q2, and the energy was undeniable. From market outlooks to value creation strategies, one theme stood out across every conversation: financial clarity is mission-critical. Whether you’re scaling, selling, or optimizing, having embedded financial leadership—like a fractional CFO—is now a competitive necessity, not a luxury.
Next Level Now was proud to be part of the conversation, with our CFO, Brandi Bonds, sharing insights on a panel focused on organic vs. inorganic growth. Below are key takeaways and themes that continue to resonate.
M&A in a Changing Economy: Still Strong, But More Scrutinized
Despite broader economic uncertainty, MSPs remain highly attractive to investors. As Sydney Hockett (Evergreen Services) and Greg Northrop (IT Valuations) shared, recurring revenue models and industry resilience are keeping demand high.
However, the bar for due diligence has been raised. With higher interest rates and more cautious buyers, sellers need to be more prepared than ever. As Jason Erickson (Integris) put it, “Giving your financials to a potential buyer is like a first date. The better your financial statements, the smoother your relationship.”
Key M&A Takeaways:
- Representation matters—experienced financial leadership helps sellers avoid costly mistakes.
- Transparency is non-negotiable—holding back data kills deals.
- Clean, well-organized books can dramatically accelerate the process.
- Vertical specialization (e.g., legal, finance, healthcare) adds defensibility and appeal.
Organic vs. Inorganic Growth: A Dual Strategy
The discussion around growth strategies revealed that most successful MSPs are actively balancing organic and inorganic initiatives. Our own Brandi Bonds, along with leaders like Amy Rutt (Ciracom Cloud) and Kevin Cook (Ntiva), emphasized the importance of both.
Organic Growth Tactics:
- Optimize pricing models to reflect value.
- Increase operational efficiency and reduce ticket overhead.
- Upsell and cross-sell within the existing client base.
- Improve visibility into customer data to uncover expansion opportunities.
Inorganic Growth Reminders:
- Don’t pause your sales engine during acquisitions.
- Align post-acquisition plans with long-term objectives.
- Reverse due diligence matters—get to know the platform you’re joining.
Growth isn’t just about size—it’s about building the right business, the right way.
What Actually Gets Disrupted
Think switching tools is just a matter of syncing APIs? Think again.
Julie highlighted three core areas that get thrown off balance:
- Chart of Accounts – If mappings aren’t right from the start, your financial reports will be garbage.
- Payment Workflows – Disruptions here mean delayed bills, frustrated vendors, and strained cash flow.
- Reporting Cadence – Even a one-week reporting delay can be costly in a fast-moving MSP environment.
Fixing the Book of Business: Think Like a Portfolio Manager
Speakers like Arlin Sorensen, Lori Berry, and Peter Kujawa stressed the importance of treating your business like a managed portfolio.
Key Metrics to Track:
- Revenue per user or endpoint
- Tickets per endpoint or per hour
- Time spent per ticket
- Shadow billable hours: how much time is actually spent on a client each month
By analyzing outliers in your internal benchmarks and comparing them to external data, MSPs can identify inefficiencies, underperforming accounts, and missed revenue opportunities.
Financial leadership helps uncover these issues early—and fix them faster.
EBITDA and Value Creation: Bigger Isn’t Better, Better Is Better
Multiple experts, including Jay Jung (Embarc Advisors) and Abraham Garver (Focus Investment Banking), echoed a powerful truth: EBITDA growth is the top valuation lever.
Actionable Steps:
- Reduce client concentration (keep any one client under 20% of revenue).
- Focus on profitability, not just top-line growth.
- Use valuation tools like SLIQ and VaaS to track your readiness.
- Create a value creation plan before you even think about selling.
A higher valuation doesn’t come from more revenue alone—it comes from a well-run, efficient, and scalable business.
The Future Is Here: AI and Simplification
Manny Rivelo (ConnectWise) laid out a bold vision for the future of MSPs: Level 1 support will be handled by AI. To prepare, MSPs need to simplify their technology stacks and pricing models.
Where Finance Plays a Role:
- Forecasting cost savings from automation
- Aligning pricing with new service models
- Calculating return on innovation investments
Financial strategy must evolve alongside technology.
Final Word: “Do the Things”
Throughout the week, one phrase stood out and became a theme in itself:
“We all know what we need to do—but we don’t do the things.”
At Next Level Now, we’re here to help MSPs do the things. From growth planning to due diligence prep to day-to-day financial operations, our embedded CFOs help bring structure, strategy, and action to your numbers. You know what needs to be done. We’ll help you get it done—better and faster.