How do you go from a small MSP in South Africa to a $38M revenue in just a few years? By making smart acquisitions, that's how! If you're in the managed services space, you know that acquisitions are the key to growth. But how do you know when an acquisition is a good deal? In this video, Orrin Klopper talks about his MSP acquisitions, what he looks for and what he passes on, and see how they can help you determine whether or not an acquisition is right for your business.


00:00 Intro to Orrin Klopper

00:41 Update LOI's out - don't fall in love with a deal and the need for an abundant pipeline

01:39 From South Africa - 1st remote customer in NY remotely

03:42 Joined EO, At $12 million - first acquisition - off market

05:03 First Acquisition Cap Stack - how he bought

05:43 Was seller happy with valuation - drifted into red Ocean

07:04 Earn outs - upside / downside risk - love hate relationship

09:24 Types of Acquisitions he makes - Criteria - outside of numbers

12:21 Open Book Transparency - why

13:53 How can you tell the seller wants to stay on - and help you grow your vision

14:56 Why focus on revenue range - 30k MSPs - 60 active PE firms hunting

16:04 Should MSPs go through Full Sales Process - CIM and Campaign or not

17:31 Saying yes or no to deals - what he got good at - Valuations & Culture

21:36 Passing on deal where seller high concentration of customers

21:44 Future Plans: $10 million EBITDA

23:54 Multiples on MSPs

25:08 Culture and Style of Management - only way we can grow...

27:03 Decentralized Hiring - own the decision

28:29 How he spends his time 60% M&A, 10% Organic, 15% Culture

29:01 How ebidta growth make money attraction easier

31:05 Adam Coffey the Legend

34:01 How to create abundant deal flow

35:44 Doing a podcast for deal flow - the Midas lesson