XChange UK: Key takeaways from CRN's inaugural UK residential event
We break down the top statements made during CRN’s first ever two-day XChange conference
CRN has wrapped on its brand new XChange UK event, which gathered leading solution providers at Ashdown Park in East Sussex for a two day, in-person symposium.
The last 48 hours have been filled with insightful panels and keynotes from leaders sharing their approach to subjects affecting every player in the industry, including M&A, cybersecurity and talent retention.
One partner, who is weighing up decisions for the future of their company, revealed they were particularly interested in the fireside chat with Flow Communications UK CEO Etienne Greeff on day one to hear his take on the private equity route and how to catch a buyer's eye.
Here CRN has rounded up the biggest takeaways and nuggets of wisdom from XChange UK.
What are M&A dealmakers looking for?
Attracting the eye of a potential buyer is a game many channel partners are playing in a move to grow their business.
During a panel discussion on whether private equity is the right route, Aylesh Patel, investment director at PE firm LDC said the key was finding the difference maker.
"Everybody in this room would probably be aware of the market, from a UK middle market, SMB space, is very fragmented," he told the audience.
"And that means finding levels of differentiation in businesses is one of the key things we try to look at and one of the key things we try to understand about each business we invest in.
"That then leads on to how does that business grow? What are the drivers of that? What does that look like financially, which, unfortunately, I'm an investor so we do like things like recurring revenue and high cash flows and generation.
"But that isn't always the fundamental, it's about how special is the business? What's the secret sauce, and how can we as investors, help the management team of that business, take it to the next level."
Greeff made similar remarks during his chat with CRN editor Nima Green, highlighting recurring revenues, company size, the ability to add value, nurture talent and demonstrate and measure all this to buyers sizing you up as his crucial steps in the M&A dance.
Speaking alongside Aylesh on the PE panel, Lucie Mills, partner at NorthEdge provided another side to the conversation.
"What we do is start and end with people," she said.
"We look for brilliant management teams, brilliant business leaders, with a great plan that's looking for a partner.
"It's looking for something a bit different to help them accelerate their growth potential."
Keep reading to hear the most crucial points made during day two pf CRN XChange UK...
XChange UK: Key takeaways from CRN's inaugural UK residential event
We break down the top statements made during CRN’s first ever two-day XChange conference
Culture is no longer a 'lip service' priority
Company culture and its people are among the few trivial things used to captivate potential employees and acquirers.
However, Coachere founder Yvonne Matzk set out to prove this wrong in her panel on day two of XChange, and debunk the myth that you have to be a large corporate to have a sustainable value based culture.
"At CAE we say that we are culture first. What I mean by that is, culture may come before capability," said CAE Technology Services people services director, Natalie Hailey.
"From a recruitment perspective, if we're looking for individuals to come in and do a job, are they actually right for our business?
"We don't look at culture fit, we look at culture add, as something that we want people to bring something into our business."
Hailey went on to explain how her organisation assesses this.
"We've got the fundamentals of our values and behaviours, they're not just things on the wall to us, they weave through everything that we do and we weave it by also having consequences if people aren't following those behaviours.
"And I don't mean that in a punishment sort of way, but educating people on the way, how we do things, why we do it, and have them understand that actually, we get good outcomes personally and professionally, by living by our values and behaviours."
But it's not just the company that is deciding the future of its culture, but in fact its future talent, according to Richard Wyn Griffith, CCO at Softcat.
"One of the things we've done really well in our organisation that I would encourage many people to do, is talk to your employees about what culture means to them," he said.
"By going out and surveying our employees every year, multiple times throughout the year, we get lots and lots of feedback about things that should change.
"I think we've made a lot of changes to our communities and our DEI programme has come from a lot of our employees feedback through what they would like to see in the organisation.
"It's certainly something that we've had to work very hard at. One of the points was, you have to be a big organisation with a big people department to be able to have that change. And that's not so true, either.
"Our people department is actually quite small and we rely heavily on our management team and our leadership team to lead out the culture and really go from their positions of management and leadership to try and drive that cultural change through the organisation."
XChange UK: Key takeaways from CRN's inaugural UK residential event
We break down the top statements made during CRN’s first ever two-day XChange conference
Services add value, so focus on them
As already argued during the two M&A and private equity discussions, value-add services are top of the list for those looking to splash the cash in an acquisition.
And Guy Golan, CEO of Performata, agreed.
"The quality of what is being done is important. If you're an MSP and you provide a lot of IT services, I would dare to say you actually have something good in your hands, compared to those of us that are 100 per cent cybersecurity firms," he said talking about what is ripe for investment in cybersecurity.
"If you understand the network, ask yourself the question, what will allow me to be stickier? And by that I mean offer those services that add value but be realistic - don't try to conquer the world in one go, because it's not going to work as well. That takes a lot of time."
Golan advised audience members that, instead of pursuing a high effort, high risk approach, they should focus on what they are already really good at.
"Offer that and plug in your services that are cybersecurity: that will add value to your clients."