Fast-growing SP Offers Peek at Acquisition Formula

Incentra Solutions has grown from a $8.6 million business in 2004 to $240 million next year. Getting there required organic growth and acquisitions that complemented it.

CDW may have been the poster child for reseller mergers and acquisitions in 2007, but plenty of other small and midsize VARs and solution providers have been eyeing mergers and acquisitions, too.

And while interest in these transactions is on the rise, not many solution providers are well-versed on how to find the right partners for such deals and how to make the most of them.

Incentra Solutions Chairman and CEO Tom Sweeney says his company has followed a prescribed process in its growth-by-acquisition strategy. Together with organic growth, the strategy has increased Incentra's sales from $8.6 million in 2004, the year it was founded, to $66.6 million in 2006 and an estimated 2008 sales of $240 million once two additional companies are integrated for the full year.

The company's offerings include professional services, product sales, remote monitoring and management, and financial solutions.

Hailing from mostly telecom companies, Sweeney spent much of his career in marketing positions as a developer of products and services before starting up Incentra, perhaps giving him a different take on how to approach the acquisition process.

When looking for possible acquisition targets, Sweeney said Incentra seeks companies with the same expertise that it already offers—server computing, storage, network and security—but looks for those in geographic areas where the company does not currently have a presence.

/zimages/1/28571.gifRead the full story on The Channel Insider: Fast-Growing SP Offers Peek at Acquisition Formula