Search Fund Deal in the DevOps MSP Space
We’ve been hoping to see a neat search fund deal come along to our inboxes. We got one!
It is a for a SF Bay Area searcher with a strong tech background acquiring a managed service provider (MSP) in the DevOps space.
Lots to like about the trajectory of that sector. DevOps a “necessary evil” for many companies in that gives little to no strategic advantage. Combine that with the idea that DevOps talent is rarer than an ice cube in the desert and you’ve got a nice niche to consider.
The searcher also has deep tech knowledge and background having worked in several parallel businesses at some Bay Area BigCorps.
One thing I'd want to really press in on is the talent retention plan. These customers are outsourcing their devOps because experts there are basically impossible to hire.
It looks, on the upside, that the searcher is retaining some of the key people. A question is: how long? Especially since he'll be productizing the offering over time.
Finally, the "bet" here is whether the operation can scale both on the supply-side (people and automation) and demand-side (go-to-market). Those things need to go right.
YMMV. If you’re interested in more, here is the teaser from the searcher with his contact information.