2019: what a time to be in the managed services industry. With the rise of cyber security, the quest to solve the skills gap, and increased investment in mergers and acquisitions to name a few, there's been a lot of fascinating movement as of late—and Continuum and our partners are here for it.
The recent acquisition of CMIT Solutions by private equity firm Craftmans Capital speaks to this exciting time. Read on for more details on this new development and advice for MSPs working to find that secret recipe for success in this market.
PE Firm Craftsman Capital Acquires CMIT Solutions
This is an exciting development for CMIT, as it positions them for long-term franchise growth, enhanced franchisor and franchisee operations support, and a strengthened infrastructure to fuel its category leadership.
Jeff Connally, president and CEO of CMIT Solutions, stated:
“Craftsman Capital enters the picture at a time when we have significantly expanded the franchisee footprint over the last several years. We expect the growth to continue as a testament to our best-in-class processes and procedures that provide an optimal end user experience. Craftsman Capital enables the company to scale up in so many ways—franchise growth, technology partners, service deliverables, human capital, marketing and operations. Throughout the process of working with the Craftsman Capital team, it became clear beyond a doubt that this is the right fit for us as we move into our next phase of growth.”
Continuum Congratulates CMIT
In response to the news, Continuum CEO Michael George extends this message:
“The CMIT / Continuum strategic partnership spans more than a decade, as we have been in lockstep throughout our growth and respective successes. We are truly excited for Jeff Connally and his entire team, as this investment by a great private equity company will further enable CMIT to empower their franchisees with more and better resources so they can dominate their markets.”
What's the Secret to Success for MSPs?
Growth-minded MSPs are likely asking themselves important questions like: "What can I learn from CMIT's business processes and decisions?" "What steps can I take to get my business to the point where PE firms are vying to capitalize on its model?"
What puts CMIT at a vantage point is its ability to provide best-in-class processes and procedures that provide an optimal end user experience—and Craftman Capital saw that. CMIT has made data-driven decisions that positioned the business to scale and enter the next phase of growth. The organization has opened 42 new franchise offices across North America in 2018 and added 26 new franchisees to the CMIT Solutions franchise system. Currently, there are more than 220 CMIT Solutions offices in 33 states across North America. This acquisition will power the growth of those franchise even more with additional resources equipped to dominate the market.
Not only the smart franchising, but the business model itself validates the key predictions for this year and beyond for the IT channel. Through a collaborative culture, CMIT Solutions and its franchisees help partners avoid and overcome technology challenges so they can focus on running and growing their businesses. This promise will ring ever more true being backed by institutional capital.
And, this trend is only set to continue. According to the Pareto Principle, 80 percent of the market's wealth is dominated by 20 percent of the market, and a now is the perfect time for this to happen in the managed services marketplace—a historically traditional space ripe for disruption.
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