With the current economic state it is becoming harder and harder for small business to survive.  From labor shortages to supply chain restraints small businesses are facing huge challenges in there day to day operations.  As an Independent MSP you are bearing the responsibility not only to overcome these challenges, but also provide industry leading technology, hardware and software, support, cloud technologies, while staying on top of operations, financials and managing the bottom line.  We meet up with David Papp of MSP Corp who speaks with us about the power of partnering.

Video Transcription

Harry Brelsford 

A nation nation back with David pap of MSP Corp. How you doing? Happy New Year,

David Papp 

Happy New Year to you as well, Harry.

Harry Brelsford 

All right. Well, you know, I really enjoy talking to you guys, you you’ve always got something going on. I mean, I’m seeing raise new board members and a couple of additions. So take it from the top man, what’s up?

David Papp 

Well, um, as we mentioned last year, that sounds like a long time ago, when we last spoke, we’re definitely still on an accelerated path of acquisitions. We acquire MSPs. Right now, as I pointed out, our focus is still within Canada. And what we’re trying to do is get presence in all the major centers, all the major cities throughout Canada. And then we’re we’re definitely having our radar expansion into the US. It’s just right now, this is our current focus. Things have been going amazingly well, as you mentioned, we do have a couple new acquisitions in the pipeline. We’ve always got some deals going like, honestly, we figure by the end of this year, we’ll be double what our size was last year. So we had over 10 companies that we owned last year, we’ll probably be at 20 by the end of this year.

Harry Brelsford 

Yeah. Unbelievable. That $35 million round? That’s different than when we last talked Right? Or no, maybe. Maybe I did talk to you about this site.

David Papp 

It’s an expansion on what we last spoke. So the no new number has rounded out to 35.

Harry Brelsford 

Yeah, right. Yeah. No, you’re sounds like you’re using it wisely.

David Papp 

Well, um, you know, the, the shareholders on the board of directors, their focus, of course, is expansion and to always continually to grow. And that is exactly what we’re doing. We’re acquiring new MSPs to add to the family. And things are going amazingly well.

Harry Brelsford 

Yeah, just to revisit, your business model was you, you were you are an MSP and you’re growing by acquisition, it’s that simple,right?

David Papp 

Very simple. And the beautiful thing is, we’re not a PE firm, we’re not like a typical just dollars and cents, we are operators buying out other existing operators and allowing them to run as is. And that is honestly very different than the way other acquisition models occur in the industry. And people appreciate that. It’s very refreshing, because you put you know, your heart, sweat and tears into your company, and you have an emotional attachment to it. And then we’re coming to you and saying, we’d like to buy your company and we want to run we’ll bring you into the fold. And yet, they’re still concerned about their staff and their legacy and their clients. And that’s beautiful, because we leave it as is we want that we’re buying MSPs because of the recurring revenue, that model that they’ve got in place, and we want to enhance the support that we can provide to them. Vendor Support, HR support, you know, the technology support, the staffing, as you know, is a massive topic these days, like the whole HR thing. Yeah. And a podcast last hour on that. Yes, it’s it’s we could talk for hours on that topic.

Harry Brelsford 

Yeah, yeah, we could, that’s that’s kind of what I was thinking is the inherent operational efficiencies you get with this kind of roll up is that it takes the staffing burden, that lessens the staffing burdens, you know, for the

David Papp 

operator, because that is a huge problem and a risk. Now with a lot of MSPs. There is a tech shortage we all know about it. It really, in my opinion, hit hard when that big reset button hit when COVID hit. Because all of a sudden, all these companies realized that they had to facilitate people working from home working remotely moving their physical infrastructure into the cloud to facilitate that securing it, and there weren’t enough experience people to pull that off. And in fact, there’s also all the shortages when it comes to supply as well. And we help with that as well. Right? Because we have a lot more buying power with vendors and a lot more push. Then another smaller MSP who says you know, geez, I need 20 laptops for this client, and they simply can’t get them.

Harry Brelsford 

Yeah, yeah, great. Well, hey, David, we’re gonna check in with you next, next quarter. He always got something going on. Thanks for being part of the SMB Nation mix

David Papp 

anytime, Harry anytime.

Harry Brelsford 

Alright, bye bye.

David Papp 

Bye.