Get the presentation here – Private Equity – Managed Services Opportunity
- 3x increase in multiples have been achieved in IT based companies that transition to an annuity based business from a transaction based business
- In addition, increased value can be achieved through heavier use of automated delivery systems – lowering costs and delivering a higher exit value premium
- Market acceptance of Cloud and Managed Services has reached a tipping point and is becoming the preferred way of doing business
- Acquisitions can leverage a newly enhanced managed services business. The skills and processes developed bring in new customers of the acquired company at the higher multiple values
- Transition to Managed Services is a complex change management strategy which presents a challenge for existing management teams without leadership experienced in this discipline
