How does Syscom find MSP acquisition targets?

Syscom works with buyer-side representation firms (often the same companies that provide MSP valuations) that actively reach out to MSPs on their behalf to start acquisition conversations. They also leverage industry connections through peer groups and personal networks, as demonstrated by their 2022 Pennsylvania acquisition from a friend in the industry.

What happens to employees when Syscom acquires an MSP?

Employees often don't know about the sale until it closes, though many sense when owners are losing passion. Syscom maintains service continuity initially, then gradually transitions to standardized Kaseya platforms while promoting at least two people from each acquisition into leadership roles. The company's metrics-driven culture sometimes reveals underperformers who weren't held accountable under previous ownership.

What size MSPs does Syscom target for acquisition?

Syscom targets MSPs generating $1-4 million in revenue with 5-7+ employees, where owners are looking to fully retire rather than stay involved post-sale. They prioritize cultural fit and clean exits over financial terms, seeking sellers who share their client service ethos.

MSP M&A Strategy: Cultural Fit & Integration Lessons

Name: MSP M&A Strategy: Cultural Fit & Integration Lessons
Uploaded: 2026-05-12T20:28:39-04:00
Duration: 31 min 45 s
Description: In this episode of M&A Unpacked, Mike is joined by Scott Huxley, Managing Principal at Syscom, an MSP based in Grand Rapids, Michigan. Scott delves into the intricacies of acquiring MSPs, especially in the challenging times of the COVID-19 pandemic. Sc...

Kaseya

05/12/2026

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TL;DR

Cultural fit trumps financial terms in MSP acquisitions—Syscom won their first deal during COVID by offering better alignment and retirement flexibility than a competing offer already on the table.
Post-acquisition integration is the hardest phase, requiring gradual technology standardization to Kaseya platforms while maintaining client service quality and building employee buy-in through explaining the 'why' behind changes.
Syscom actively sources deals through buyer-side representation firms that reach out to MSPs, targeting $1-4M revenue companies with 5-7 employees whose owners want clean retirement exits.
Employee communication is typically controlled by sellers and brokers, often resulting in surprise announcements, but Syscom mitigates this by promoting at least two people from each acquisition into leadership roles.
Syscom has completed multiple acquisitions since 2020, expanding from Grand Rapids to Detroit and Pennsylvania, with plans to continue growth through M&A as a core business strategy.

Cultural Alignment as the Foundation of Successful MSP Acquisitions

Scott Huxley, Managing Principal at Syscom, emphasizes that cultural fit is the most critical factor in MSP acquisitions—often more important than financial terms. In Syscom's first acquisition during COVID-19, the target company (Michigan Computer Solutions in Detroit) chose Syscom over an existing offer because of better cultural alignment and retirement flexibility for the owners. Huxley explains that while due diligence reveals financial health, it cannot fully expose cultural misalignment, which becomes the hardest challenge post-acquisition. Unlike technology stack differences that can be resolved through standardization, incompatible cultures create nearly insurmountable integration obstacles. Syscom's approach prioritizes finding sellers who share their client service ethos and are genuinely ready to exit, rather than forcing owners to stay on in roles that don't align with their retirement goals.

Integration Challenges and Technology Standardization

The post-acquisition integration process represents the most difficult phase of MSP M&A, according to Huxley. Syscom's strategy focuses on maintaining service quality for acquired clients while gradually transitioning to standardized Kaseya platforms across all entities. The company cannot immediately impose new tools without impairing client experience, so they maintain status quo initially while building employee buy-in for platform changes. Huxley stresses the importance of explaining the 'why' behind technology decisions rather than mandating changes, as employees come from different knowledge levels and need to understand how standardization benefits them. This approach has enabled Syscom to scale across multiple states while maintaining operational efficiency. Each acquisition has also provided learning opportunities, though the core principle remains: one unified platform is essential for building a scalable business that can serve clients effectively across geographic boundaries.

Employee Communication and Retention Strategies

Syscom's acquisitions typically involve sellers who haven't disclosed sale plans to employees, creating awkward but necessary transition moments. Huxley describes the first acquisition's employee reveal at a restaurant lunch as particularly uncomfortable, but notes that employees often sense when owners are 'checking out' and losing passion for the business. The company has learned to embrace this awkwardness while positioning themselves as the 'good guy' by offering promotional opportunities—typically promoting at least two people from each acquired company into leadership or management roles. Syscom's high degree of accountability and metrics-driven culture sometimes reveals employees who weren't performing well under previous ownership, enabling decisions that should have been made earlier. The company targets acquisitions of 5-7 employee MSPs generating $1-4 million in revenue, where owners are genuinely ready to retire without staying involved post-sale. This focus on clean exits and employee development has helped Syscom retain talent while building a scalable, multi-state operation.

Chapters

0:00 - Introduction to M&A Unpacked
1:16 - Scott Huxley's MSP Journey
4:40 - First Acquisition During COVID
9:08 - Cultural Fit in M&A
10:56 - Subsequent Acquisitions
12:38 - Finding Acquisition Targets
15:45 - Integration Process
19:52 - Employee Communication
26:51 - Due Diligence Challenges
28:36 - Ideal Acquisition Profile

Key Quotes

9:08 "Due diligence only takes you a certain part of the story. What you cannot overcome is a very, very different culture and mindset that you inherit. If it doesn't fit with you as an organization, that can be almost impossible to overcome."
10:44 "Once the deal is done, that's when really the hard work begins at that point."
16:13 "One thing you cannot do is you cannot impair the service for the clients and the experience that they got through acquisition."
18:31 "You really have to sell them on the why first rather than just say, hey, we use Kaseya like it or take it or leave it. They have to understand why and also how it's going to help them."
24:28 "You usually end up being the good guy in the end because there's things that you're able to do, there's promotional opportunities for individuals to get promoted. We typically promote at least two people from an acquisition into different roles in the organization."

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