Mergers and acquisitions are surging across industries. In 2021, global M&A volumes reached $5.8 trillion in value—a record high and a 64% increase from the previous year. Nowhere has this trend been felt more than in the managed service provider space.
The pandemic accelerated the demand for services provided by MSPs, and in response, M&A activity is surging. Recurring and predictable revenue, low churn, and growing margins make MSPs the perfect asset type.
With M&A levels on the rise in 2022, MSPs with acquisitions in their future need to streamline their IT documentation to ensure a smooth process. However, documentation is often an afterthought for technicians who are already overwhelmed with daily tasks and an increasing number of tickets. But executing an M&A process without proper documentation not only leads to wasted time and reduced productivity, it also places organizations at a disadvantage with potential investors if their house is not in order.
Introducing automation and a centralized documentation system enables organizations to simplify routine tasks, eliminate inaccuracies, and increase operational efficiency.
Lack of Documentation Leads to Wasted Time
During M&A deals, business leaders often struggle to merge completely separate systems, organizational structures, technologies, internal processes, and cultures into a single company that can seamlessly run post-acquisition. It’s no surprise that integrating the locations, services, site, and client information of two different organizations is a time-consuming and complex challenge.
Navigating the M&A process is even more difficult if companies don’t have proper documentation before merging. A lack of standardized documentation leads to inconsistent and unstructured processes. Without a centralized repository or accessible knowledge about where various resources live, employees are forced to waste time searching for files or asking for help. Post-merger, it’s essential that staff have immediate access to information like org charts, personnel files, passwords, job responsibilities, communication systems, and technologies.
By investing in automated documentation, employees will benefit from better time management and be able to focus on more valuable work, post-acquisition.
Automation Boosts Operational Efficiency
A streamlined M&A process starts with having the organization’s information documented in a structured and automated way. With a complete understanding of how the entire IT infrastructure supports core business services, the organization can run smoothly, without disruption.
Turning ad hoc “know-hows” and best practices into accurate, structured, and centralized processes saves time across the entire organization because it ensures essential tasks and business processes aren’t interrupted. Additionally, granular permissions and audit trails give the MSP confidence that sensitive data is restricted to only the assigned users. It provides traceability and access control so there is transparency about who is using passwords, and accessing and updating documentation—allowing everyone to be on the same page.