The MSP acquisition market continues to thrive across the US, UK, and Europe, with deal activity remaining robust despite broader economic headwinds. Private equity firms and strategic acquirers are still actively pursuing growth through M&A, drawn by the recurring revenue models and scalability that characterise successful MSPs.
Yet beneath this surface activity lies a troubling reality: many deals are failing to deliver on their promise.
The hidden value leak
Boston Consulting Group's comprehensive 2023 M&A report revealed a stark truth - only 44% of deals achieve their expected synergies within the planned timeframe. This statistic becomes even more concerning when we consider the substantial investments being made in MSP acquisitions, where multiples remain elevated and growth expectations are high.
But here's what's particularly relevant for MSP leaders: the primary culprit isn't technical integration or financial reconciliation. It's something far more fundamental to business growth, yet it's consistently treated as an afterthought.
Go-to-market integration is where deals live or die.
Whilst acquirers meticulously plan the merger of tech stacks, standardisation of processes, and consolidation of back-office functions, the real drivers of revenue growth—sales processes, marketing alignment, and customer experience, are relegated to “phase two”. In our experience working with integration-challenged MSPs, phase two often becomes phase never.
This creates what we call the “value leak”; a slow, steady erosion of the deal's potential that compounds over time. Revenue synergies remain unrealised, customer confusion grows, and the unified value proposition that justified the acquisition multiple never materialises.
The research backs this up
KPMG's Global M&A Outlook 2023 reinforces these concerns, finding that companies failing to properly integrate go-to-market functions typically experience 15-25% underperformance against projected revenue synergies. When you're working with acquisition multiples of 4-8x EBITDA, this underperformance can translate to millions in lost value.
The flip side is equally compelling. 83% of successful acquirers cite early integration of sales, marketing, and customer experience as critical to their success. These aren't soft metrics - they're the hard business drivers that determine whether an acquisition becomes a growth catalyst or a value destroyer.
BCG's research also shows that in deals involving digital transformation, highly relevant to MSPs given their role in client digital journeys, revenue synergies are 30% more likely to be realised when go-to-market integration is prioritised early in the process.
Introducing the value stack
The solution lies in what we call “The Value Stack”. A comprehensive framework that addresses the full spectrum of go-to-market integration. Unlike technical integration, which focuses on systems and processes, the Value Stack centres on the customer-facing elements that actually drive revenue growth.
The value stack encompasses:
Foundation layer:
- Market & customer understanding
- Brand positioning and messaging
- Value proposition alignment
Execution layer:
- Marketing and demand generation
- Sales enablement and processes
- Customer success and retention
- Revenue and sales operations
- Partner marketing programmes
Enablement layer:
- People alignment and training
- Process standardisation
- Data integration and analytics
- Technology stack optimisation
- Measurement frameworks
- Governance and accountability structures
Each element builds upon the others, creating a cohesive system that transforms fragmented go-to-market approaches into a unified revenue engine.
The critical questions
If your MSP has completed one to three acquisitions in the past 24 months, it's time for some honest self-assessment. Ask yourself:
- Can your teams clearly articulate a unified value proposition that differentiates you in the market?
- Does your sales organisation have a well-defined, consistent sales process across all business units?
- Do your salespeople have access to branded, persuasive enablement content that supports every stage of the buyer journey?
- Have you aligned marketing approaches, messaging, and technology stacks?
- Is the customer experience consistent regardless of which part of your business serves them?
- Can you measure and optimise your go-to-market effectiveness across the entire organisation?
If you're hesitating on any of these questions, you're likely experiencing value leak.
The 100-day window
EY's 2023 research provides a crucial insight into timing. They found that 70% of companies exceeding synergy targets integrated their go-to-market functions within the first 100 days post-acquisition. Those that prioritised customer experience alignment early were 40% more likely to achieve overall synergy goals compared to those who focused solely on technical integration.
This research underscores a critical point: the window for maximising acquisition value is narrower than most leaders realise. The longer fragmented go-to-market approaches persist, the more difficult—and expensive—they become to integrate.
Beyond the tech stack
The MSP industry's natural inclination is to focus on technical integration. It's tangible, measurable, and familiar. Merging PSA systems, standardising RMM tools, and consolidating security stacks feels like progress.
But here's the reality: your clients don't care about your internal systems. They care about the experience you deliver, the value you provide, and the confidence they have in your ability to solve their problems. When your go-to-market approach remains fragmented, that client experience suffers, regardless of how elegant your technical integration might be.
The path forward
Successful post-acquisition integration requires a fundamental shift in thinking. Instead of treating go-to-market alignment as a secondary consideration, it needs to be elevated to the same level of priority as financial and technical integration.
This means developing a comprehensive Value Stack that aligns every customer-facing element of your business. It means investing in the people, processes, and systems that turn your acquisition from a collection of separate companies into a unified market force.
Most importantly, it means recognising that the true value of an acquisition isn't unlocked in the server room—it's unlocked in the marketplace, through the consistent delivery of differentiated value to your clients.
The MSP leaders who understand this distinction are the ones who will maximise their enterprise value, exceed their synergy targets, and position themselves for continued growth in an increasingly competitive market.
Don't just integrate the tech stack. Align your Value Stack.
