Comments on: Sparxent Start-up Begins Managed Service Provider and VAR Acquisitions http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/ Managed Services & Cloud Services Blog for VARs & MSPs Wed, 15 Feb 2012 00:09:29 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Joe Panettieri http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/comment-page-1/#comment-25777 Joe Panettieri Wed, 27 Aug 2008 06:07:19 +0000 http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/#comment-25777 Jim: The folks at Sparxent know the horror stories from MarchFirst and USWeb. I suspect the challenge for Sparxent will be more global in nature -- dealing with different cultures and localization issues as they acquire companies from multiple regions. On paper, though, I'm impressed with the first two acquisition targets. They seem to have strong track records. Jim: The folks at Sparxent know the horror stories from MarchFirst and USWeb. I suspect the challenge for Sparxent will be more global in nature — dealing with different cultures and localization issues as they acquire companies from multiple regions. On paper, though, I’m impressed with the first two acquisition targets. They seem to have strong track records.

]]> By: Jim Van http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/comment-page-1/#comment-25774 Jim Van Wed, 27 Aug 2008 03:36:50 +0000 http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/#comment-25774 Joe: your dad is so right...and real estate is a good teacher of that adage.... I think your point about some MSPs wanting to take their practices to the next level or making a connection with which they're comfortable are good points. That being said, I, for one, am having too much fun (somewhere in there with all the stress) owning my own shop (well...my partner Deb and I) and the freedom that comes with it. And then, there's the fond memory of the MarchFirst launch. I had some good friends that got really burned, which makes me view all of these roll-up type efforts with a healthy view of skepticism.... Jim Van http://www.logicomm-inc.com Joe: your dad is so right…and real estate is a good teacher of that adage…. I think your point about some MSPs wanting to take their practices to the next level or making a connection with which they’re comfortable are good points. That being said, I, for one, am having too much fun (somewhere in there with all the stress) owning my own shop (well…my partner Deb and I) and the freedom that comes with it.

And then, there’s the fond memory of the MarchFirst launch. I had some good friends that got really burned, which makes me view all of these roll-up type efforts with a healthy view of skepticism….

Jim Van
http://www.logicomm-inc.com

]]> By: Lane Smith http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/comment-page-1/#comment-25740 Lane Smith Tue, 26 Aug 2008 21:12:10 +0000 http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/#comment-25740 Thanks Joe, and for the record, I am not one of those MSPs clamoring for information about this company so I can sell mine to them. Thanks Joe, and for the record, I am not one of those MSPs clamoring for information about this company so I can sell mine to them.

]]> By: Joe Panettieri http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/comment-page-1/#comment-25691 Joe Panettieri Tue, 26 Aug 2008 12:55:39 +0000 http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/#comment-25691 Lane: Yes, same company. Sorry I wasn't clearer about that. Lane: Yes, same company. Sorry I wasn’t clearer about that.

]]> By: Joe Panettieri http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/comment-page-1/#comment-25690 Joe Panettieri Tue, 26 Aug 2008 12:55:22 +0000 http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/#comment-25690 Charles: I've got mixed feedback on this one. The USWeb roll-up and MarchFirst launches were disasters during the dot-com boom/bust. And as media entrepreneurs, my business partner and I enjoy making fast, informed decisions that don't get bogged down in endless debate. We're creative but business minded -- two key traits, I think, for building an independent business. But at some point for many MSPs, there comes a need for outside funding to take a company to "the next level." Or, it's nice to connect with additional smart folks who share a common vision or goal. My dad, a real estate guy, always says: "Everything is for sale, it's just about establishing the price." Should MSPs sell out? Certainly the answer will vary from company to company. Charles: I’ve got mixed feedback on this one. The USWeb roll-up and MarchFirst launches were disasters during the dot-com boom/bust.

And as media entrepreneurs, my business partner and I enjoy making fast, informed decisions that don’t get bogged down in endless debate. We’re creative but business minded — two key traits, I think, for building an independent business.

But at some point for many MSPs, there comes a need for outside funding to take a company to “the next level.” Or, it’s nice to connect with additional smart folks who share a common vision or goal.

My dad, a real estate guy, always says: “Everything is for sale, it’s just about establishing the price.”

Should MSPs sell out? Certainly the answer will vary from company to company.

]]> By: Charles http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/comment-page-1/#comment-25689 Charles Tue, 26 Aug 2008 12:49:06 +0000 http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/#comment-25689 Any MSP thinking of selling to Sparxent needs to look back in history at all the roll-ups during 1999-2003. Almost all of them were unsuccessful. The idea of rolling up companies is strictly an investor play. It's never in the best interest of the entrepreneur. Ask yourself... Do you enjoy making your own decisions? Do you want to become a manager with only a small say in the direction of the company? Do you respect and enjoy working with your employees? Do you respect and enjoy working with your customers? If the value proposition from Sparxent is 'We can get you away from all of that stuff you don't want to do,' then why did you become an entrepreneur to begin with? If you feel being an entrepreneur was a mistake and you want out, then trust me take only cash. All the promises of future value, rapid growth, bigger customer base, larger markets and the rest of it is just a pipe dream that will likely never come true. I sold my 100 employee in 1999 to a public traded company and we were one of 8 companies purchased in a roll up. We were promised so many wonderful things and I made the mistake of taking a lot of stock and very little cash. It was a complete disaster for myself, employees and our customers. I will always regret that decision. Charles Any MSP thinking of selling to Sparxent needs to look back in history at all the roll-ups during 1999-2003. Almost all of them were unsuccessful. The idea of rolling up companies is strictly an investor play. It’s never in the best interest of the entrepreneur.

Ask yourself…
Do you enjoy making your own decisions?

Do you want to become a manager with only a small say in the direction of the company?

Do you respect and enjoy working with your employees?

Do you respect and enjoy working with your customers?

If the value proposition from Sparxent is ‘We can get you away from all of that stuff you don’t want to do,’ then why did you become an entrepreneur to begin with?

If you feel being an entrepreneur was a mistake and you want out, then trust me take only cash. All the promises of future value, rapid growth, bigger customer base, larger markets and the rest of it is just a pipe dream that will likely never come true.

I sold my 100 employee in 1999 to a public traded company and we were one of 8 companies purchased in a roll up. We were promised so many wonderful things and I made the mistake of taking a lot of stock and very little cash. It was a complete disaster for myself, employees and our customers. I will always regret that decision.

Charles

]]> By: Lane Smith http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/comment-page-1/#comment-25626 Lane Smith Mon, 25 Aug 2008 22:05:33 +0000 http://www.mspmentor.net/2008/08/25/sparxent-start-up-begins-managed-service-provider-and-var-acquisitions/#comment-25626 This is interesting news, is this the same company you mentioned last week? This is interesting news, is this the same company you mentioned last week?

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