The most underreported trend in the channel right now: MSPs are acquiring VARs. Not the reverse. Not PE firms buying both. MSPs, with their recurring revenue models and predictable margins, are using their valuation premium to buy traditional resellers and convert those customer bases to managed services.
This is the consolidation play that actually makes strategic sense. VARs have customer relationships and hardware install bases. MSPs have recurring revenue and operational maturity. Put them together and you get a services business with a built-in hardware refresh cycle feeding it new managed services opportunities every three to five years.
If you're a VAR owner doing less than $10M in revenue, your most likely buyer isn't a PE firm. It's the MSP down the street who just took their first outside investment and needs to grow their customer count fast. Start thinking about what your contracts and customer relationships look like from a buyer's perspective. That's the conversation coming your way.