Case Study: IT Managed Services

Background

Compass Consulting is a Southern California-based IT Managed Services Business founded in 1986. Compass provides cloud & security services, managed services, software engineering, and web development for small and medium-sized corporate clients. Kinected initially engaged with the sellers in February 2020 and advised them to secure long-term agreements, increase operational efficiencies, and replace underperforming employees. The owners, nearing retirement, sought a seamless transition into retirement while preserving client relationships, employee well-being, and their legacy.

GOALS & STRATEGY

In late 2022, Kinected reconnected with the sellers and found that they had acted on their advice, significantly increasing business value. Kinected prepared the business for sale in 2022, augmenting the team with a fractional CFO and corporate M&A attorney. Kinected crafted a custom marketing strategy that targeted strategic buyers, particularly those aligned with Microsoft and Citrix platforms. Compass offered a unique mix of services, including software development and marketing, requiring a buyer who saw potential in this diversified portfolio.

RESULTS

In January 2023, Kinected went to market, contacting 209 potential buyers, resulting in 43 signed non-
disclosure agreements and four offers. The Letter of Intent was signed in April 2023, and the deal closed in July

2023, concluding a 6.5-month process. The seller’s objectives were met as they successfully transitioned client
and employee relationships, securing their retirement. Kinected facilitated the entire transaction, beginning
with an Opinion of Value, providing advice that ultimately increased the value and salability of the business,
and leading a process that resulted in a successful sale to the optimal buyer, CIO Solutions. Sellers have praised
Kinected for ‘changing their lives for the better!’

"We just completed the sale of our business, relying on Kevin as our M&A advisor. Kevin came highly recommended and his extraordinary value and expertise were apparent from the start. He brought in equally extraordinary legal and accounting professionals that provided clarity and calm to the process. Without reservation, we recommend Kevin to anyone who is considering selling and wants to maximum value and a process run smoothly with integrity. The pinnacle of excellent customer service is a customer that turns and says “wow” after their service experience. We say WOW! Having a partner like Kevin by our side was such a comfort in every way, and the bond of trust we formed was lasting and priceless. "

Owner

Darin S.

88%

Kinected closes 88% of the transactions we take on — nearly 3× the industry average. If you’re thinking about selling, start with a confidential conversation.

Talk to Us →

Kevin Berson

Founder & Managing Partner · Kinected Advisors

Kevin leads sell-side M&A engagements for businesses with $10M–$100M in revenue. He has advised on ~$1B in transactions and can be reached at kevin@kinected.com.

Case Study: IT Managed Services

Background

GOALS & STRATEGY

RESULTS

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