5 Things to Do if Your Managed Service Provider is Acquired by a Private Equity Company


The occurrence of managed service providers (MSPs) being acquired by private equity firms has become increasingly common. This trend, recently observed in Silicon Valley, poses unique challenges and uncertainties for local businesses relying on these MSPs for their IT needs. Businesses find themselves grappling with sudden rate hikes, a dip in service quality, and the introduction of new, often hidden fees.

At this crucial juncture, it’s essential for businesses to navigate these changes strategically. From immediate actions to long-term planning, we’ll explore how to maintain, and even enhance, your business’s IT services during this period of change.

In the following sections, we will provide practical advice to ensure your business remains robust and well-supported during and after this transition.

Immediate Steps After Learning About MSP Acquisition

When your trusted Managed Service Provider (MSP) is acquired by a private equity firm, it’s crucial to act swiftly and strategically.

  1. Review: The first step is to thoroughly review your current contract with the MSP. This involves understanding the terms and conditions, especially any clauses regarding changes in ownership.
  2. Document: It’s also the time to start documenting any shifts in service quality or response times.
  3. Communicate: Simultaneously, open a line of communication with your MSP. It’s important to express your concerns and seek clarity about any upcoming changes in services, pricing, or staff. This dialogue can provide critical insights into the future direction of the MSP under new ownership.
  4. Explore: Next, it’s wise to start exploring alternative options. This doesn’t mean you have to switch immediately, but understanding the market and knowing your options can empower you to make the best decision for your business. Consider what features, such as personalization and response times, are non-negotiable for your company. Boutique MSPs like ITque often specialize in providing personalized services that might align better with your business’s unique requirements.
  5. Re-evaluate: Lastly, reassess your internal IT capabilities. Depending on the changes your current MSP undergoes, it might be time to consider whether bolstering your in-house team or seeking a new MSP partnership is the right move. This self-assessment will help ensure that your IT infrastructure continues to align with your business goals and operational needs.

Evaluating the Impact of Rate Hikes and Hidden Fees

In the wake of your MSP being acquired, one of the first areas to scrutinize is the financial impact, particularly concerning rate hikes and hidden fees. Often, post-acquisition, MSPs revise their pricing structures, which can significantly affect your IT budget.

Start by conducting a detailed review of your current service agreement. Look for any changes in the billing structure or additional fees that weren’t part of the original contract. It’s essential to compare the current costs with the revised rates and understand how these changes will affect your overall IT expenditure.

It’s also advisable to have a financial expert or a trusted advisor to help navigate these financial intricacies. They can provide insights into how these changes might affect your business in the long run and suggest possible negotiation strategies with your MSP.

Moreover, keep an eye out for clauses in your contract that allow for rate increases. Understanding these clauses will help you negotiate better terms or prepare for potential budget adjustments.

Should the new pricing structure become unsustainable, it might be time to consider switching to an alternative MSP. This is where boutique MSPs like ITque can offer more transparent and personalized service agreements, potentially aligning better with your business’s financial considerations and service expectations.

Planning for Staff Changes in Your MSP

The acquisition of your MSP by a private equity firm often leads to changes in staffing and management. These changes can directly impact the level of service and support you receive. Therefore, it’s crucial to proactively plan for these potential shifts.

First, establish a clear understanding of any new points of contact. It’s important to know who is responsible for your account and how to reach them. This can prevent any communication lapses and ensure that your service needs are promptly addressed.

Keep a close eye on the service quality during the transition period. Monitor if there is a noticeable change in response times or the expertise offered. This can be an early indicator of deeper issues within the MSP’s staffing or management changes.

It’s also wise to request a meeting with the new management. This can provide insights into their vision for the MSP and how it aligns with your business needs. Don’t hesitate to ask about their experience, qualifications, and plans for staff training and development.

In parallel, consider developing a contingency plan. This could involve strengthening your internal IT team or identifying alternative MSPs that could step in if service levels drop significantly. Boutique MSPs like ITque can offer a more stable and personalized service experience, which might be crucial during such transitions.

Lastly, stay informed about the MSP’s overall health. Significant staff changes can sometimes lead to instability within the organization, which could affect their ability to deliver consistent services. Keeping a pulse on these developments will help you make informed decisions about your MSP partnership.

Benefits of Switching to a Boutique MSP like ITque

In an environment where your MSP undergoes significant changes due to acquisition, considering a switch to a boutique MSP like ITque can be a strategic move. Boutique MSPs often provide a level of personalization and attention to detail that larger, equity-owned MSPs struggle to match.

  • Personalized Service: One of the standout features of boutique MSPs is their ability to offer customized IT solutions that align closely with your specific business needs. This personal touch can make a significant difference in how effectively your IT infrastructure supports your business processes.
  • Quick Response Times: Boutique MSPs typically have a more agile structure, allowing for quicker response times and more immediate resolutions to IT issues. This can be crucial for maintaining operational efficiency and minimizing downtime.
  • Transparent Pricing: With a boutique MSP, you’re more likely to find transparent and straightforward pricing without the worry of hidden fees. This clarity helps in better budget planning and financial management for your IT needs.
  • Long-term Relationships: Building a long-term relationship with a provider like ITque means they grow to understand your business deeply. This familiarity allows them to anticipate needs and provide strategic advice to support your business’s growth and evolution.
  • Quality of Service: Often, boutique MSPs are more invested in their client relationships and maintain high service quality standards. They are more likely to go the extra mile to ensure client satisfaction and provide a level of service that large conglomerates can’t always replicate.
  • Adaptability and Innovation: Finally, boutique MSPs are often more nimble and adaptable to new technologies and practices. This means your business can benefit from the latest advancements in IT services and stay ahead of the curve.
  • In conclusion, partnering with a boutique MSP like ITque offers a blend of personalized service, swift response, and strategic insight, which is especially valuable in times of uncertainty and change within your current MSP arrangement.


Navigating the complexities that arise when your MSP is acquired by a private equity firm can be challenging, but with the right approach, it can also be an opportunity for growth and improvement in your IT services. By taking proactive steps such as reviewing contracts, maintaining open communication with your provider, and assessing the financial impacts of service changes, you can ensure that your business remains on a stable footing.

Remember, changes in your MSP can also be a prompt to reevaluate your IT needs and explore new opportunities. Boutique MSPs like ITque offer a compelling alternative, with their personalized service, transparent pricing, and agility to adapt to your unique business requirements.

In conclusion, the acquisition of your MSP is not just a challenge to overcome, but also an opportunity to enhance your business’s IT infrastructure. Embrace this change as a chance to explore services that align more closely with your business goals and to build a partnership that can grow with your company.

For businesses in Silicon Valley and beyond, ITque stands ready to provide the boutique-quality, enterprise-class managed IT services you need to thrive in a changing business landscape. Visit us at itque.net to learn more about how we can tailor our services to your specific needs.