What’s the real reason people leave after an MSP acquisition? It’s not always about culture clash or layoffs. Often, it’s because nobody told them where they fit.
In this episode of Office Hours, Dori Spade from Call To Action LLC shares practical, real-world strategies for retaining your top performers through the chaos of M&A. We cover communication, clarity, culture, severance norms, and how to avoid client churn triggered by employee turnover.
This session is packed with examples, live Q&A, and lessons from the front lines of post-acquisition integration.
Timestamps:
- 00:08:00 — Staff churn = client churn
- 00:17:00 — The most overlooked moment: your first internal announcement
- 00:25:00 — How to align cultures without crushing morale
- 00:47:00 — How to handle layoffs with clarity and care
- 00:50:00 — What experienced acquirers do differently
This one’s a must-watch for any MSP thinking about (or recovering from) a deal.
Transcript
[00:00:00] Steve: Welcome, everybody. Jordan, good to see you. Val, hi. Welcome, everyone. While we wait for folks to filter in, feel free to drop in the chat where you’re joining us from. I’ve got a guest today—let’s bring her on.
[00:00:29] Her name is Dori Spade, with Call To Action LLC. Hi Dori—how are you?
[00:00:34] Dori: Hi, Steve. Hi everyone. So glad you could join us.
[00:00:39] Steve: Here’s the deal—welcome to Office Hours. If you’ve joined us before, thanks for coming back. If you’re new, these are highly educational webinars for MSPs. I’ll take about 30 seconds to tell you about Alternative Payments. Then Dori will share what she does. After that, we’ll dive into today’s topic: how to retain top talent after acquiring a company.
[00:01:42] I’m tuning in from Akron, Ohio—suburb of Cleveland, sort of. Dori, where are you from?
[00:01:50] Dori: I’m just outside the Boston area. I’d love to know where people are from—and if you’ve been involved in an acquisition, what side were you on? Were you part of the acquiring company or the one being acquired? Share your experience in the chat!
[00:02:13] Steve: That’s a great question. If you’ve been part of an acquisition, what side were you on? Were you the buyer? The acquired? Were you an executive—or part of the frontline team? (Kidding—no one here is a peasant!)
[00:02:35] Alright, I’ll tell you what Alternative Payments does, Dori will share her background, and in about 20 minutes, we’ll take a quick break and launch a poll.
[00:03:00] Steve: Alternative Payments is an accounts receivable automation platform built for MSPs. We provide a branded payment portal so clients can view and pay invoices, set up autopay, and help you get paid faster. Clients paying by check typically take 34 days to pay. Our users get paid in just six days.
[00:03:57] Dori: Thanks, Steve. As you said, today we’re diving into how to retain top talent after an acquisition. Before we begin, a little about me—I’m Dori Spade. I’ve been in the MSP space for over 17 years. I’ve worked with MSPs from $8 million to $100 million+ in revenue, led post-acquisition integrations, rescued underperforming regions, and built teams that set the standard in their orgs.
Now, I run Call To Action LLC. I help MSPs grow and scale through leadership coaching, workshops, and continuous improvement programs. If you want to connect, check out calltoactionllc.com—or just reach out on LinkedIn.
[00:05:30] Steve: Awesome. You ready to dive in?
[00:05:35] Dori: Absolutely. Thanks again for being here.
Let’s talk about why this matters. Staff attrition post-acquisition is directly tied to client attrition. And client attrition hits the bottom line.
[00:06:00] Here’s what we know: with a stable team, client churn averages 5–7%. Moderate staff turnover brings client churn to 10–15%. High staff turnover? That can spike client churn to 20–30%.
[00:06:39] I’ve worked with MSPs who set aggressive 20% growth targets—only to lose ground after deals because of client losses tied to employee departures. They ended up working twice as hard just to get back to where they started.
[00:07:03] Let’s walk through a quick valuation impact example.
Say you’re an $8M MSP with an 8x valuation. Your average MRR client is $3,000/month. Even with healthy retention, losing just 2–5 clients can cost you $70K–$300K in valuation.
[00:08:00] And I’ve seen this happen. That’s why retaining top talent is critical—because that’s what protects your client relationships.
[00:09:00] Steve: Just seeing the numbers tied to lost clients and valuation hits—wow. That’s eye-opening.
[00:09:04] Dori: It really is. Now, when we say “top talent,” who are we talking about?
It’s not just your quarterbacks. Yes, they’re hard to replace. But it’s also the people who support them—the engineers, account managers, culture carriers. Think of your team like a football team. You can’t just keep your star player and expect to win games. You need the whole line protecting them, the receivers catching the ball, and a cohesive system that works.
[00:10:00] If your quarterback has no one to block for them, they’re getting sacked. If they’ve got no one downfield, you’re not scoring. It’s the same in MSPs. Your support staff, your behind-the-scenes glue, your unofficial team captains—they all matter.
[00:10:19] Dori: I’m from New England, so I’m shamelessly a huge Tom Brady fan. Don’t hang up if you’re not! Think about this in terms of your own favorite football team and quarterback. Tom Brady was known for a lot of great things—throwing, strategy—but not running. If he had no one to throw to and had to run, it was usually a disaster.
[00:10:47] His former wife, Gisele Bündchen, famously said, “My husband cannot throw the ball and catch the ball too.” I want you to think about that when it comes to your team and your quarterback.
[00:11:13] Your MVP needs support. They need their level 1 and level 2 techs, their account managers, their sales team. So when we talk about retaining top talent, we’re not just talking about leadership. We’re talking about high performers at every level of the organization.
[00:11:37] We’re also talking about culture carriers—people loyal to the organization who focus on the positive and keep morale up. Their peers trust them, and that trust helps drive retention. These employees can exist at any level. And then there’s the untapped potential—like the interns and junior team members you’re developing through mentorship and succession plans.
[00:12:04] I bring this up because if you’re involved in an acquisition, you can’t just focus on the top tier. You have to retain strength throughout the org.
[00:12:25] So remember your quarterback. Remember Tom Brady—or your own favorite player—and think about what they needed to succeed.
[00:12:34] Steve: Excellent.
[00:12:36] Dori: Thanks.
[00:12:36] Steve: If you’re from Cleveland like me, the best you’ve got is Bernie Kosar.
[00:12:41] Dori: There you go. We’ve all got our favorites.
[00:12:52] Dori: So I break this analysis down into four key areas to make it more comprehensive. I call them the 4 Cs of retention-driven integration: Communication, Clarity, Culture, and Continuous Improvement.
[00:13:18] These titles might be tricky to say out loud, but they’re critical.
[00:13:24] Steve: No, they’re great. I’ve talked about a lot of those before too. I’m on board.
[00:13:32] Dori: I hope the audience is too. And please drop any feedback in the chat.
Let’s start with communication. It’s the foundation of everything. And when it comes to acquisitions, the first communication sets the tone for the entire integration.
[00:14:00] That first message usually happens in an all-hands meeting where the company being acquired is informed of the deal. Some leadership might get briefed beforehand, but for most people, this meeting is their first exposure.
[00:14:24] These meetings can be incredibly emotional. I’ve seen employees cry when they hear their company is being acquired. Others might be more stoic, but emotions run high.
[00:14:45] People cry because they’re connected to their company and clients, and they fear losing that. Or they’ve been through a bad acquisition before and are bracing for what’s next.
[00:15:00] Their minds immediately flood with questions: Am I keeping my job? Is my role changing? Who’s my boss now? Can I still work from home? Do I have to relocate? What’s my new title?
[00:15:12] This is fear, uncertainty, and doubt—what some call the “FUD factor.” If you’ve been around a while, you may remember IBM using this tactic in competitive sales—casting doubt to steer buyers.
[00:15:34] Steve: I haven’t heard that term before.
[00:15:36] Dori: I worked at a Fortune 500 company before entering the MSP space. We borrowed a lot of training frameworks from IBM.
[00:15:52] In our industry, FUD might look like saying, “A lot of companies leave [Competitor X] due to poor response time.” In acquisitions, you’re not using FUD intentionally—it’s just what people feel when they hear big news.
[00:16:30] That flood of uncertainty isn’t your fault—but it is your responsibility to manage it. Which is why that first meeting is so important.
[00:17:00] You’ll want to share excitement about the acquisition. Talk about your vision, your expectations, maybe even mention that no layoffs are planned. Most acquirers do a decent job of this standard agenda.
[00:17:56] Steve: I imagine most buyers make some mistakes—especially the first time. But once you’ve made one acquisition, you’re more likely to make another. So ideally, you learn and improve.
[00:18:32] Dori: True. But for those who are selling—this might be their only acquisition. They might be involved in planning that first all-hands meeting without prior experience.
[00:18:55] So yes, the standard messaging is good. But my challenge to you is this: flip the script.
[00:19:00] Instead of focusing only on the excitement and opportunity for you, frame the conversation around them.
[00:19:28] Treat your team like internal customers. Use the same communication best practices you’d use with clients.
[00:19:49] Instead of only talking about “why we did this deal,” talk about “why we chose you.” Maybe it’s geography. Maybe it’s your vertical. But speak to why their company was worth acquiring.
[00:20:12] Dori: Let’s take this messaging a step further. What if you took time to really understand the strength of the company you’re acquiring—and you actually said that out loud?
For example, say the company has a strong presence in the legal vertical. You could say, “We were very interested in acquiring your company because of your deep expertise in the legal industry.”
[00:20:39] Then you go deeper. Just like we coach salespeople to focus on the customer during a pitch, do the same here. You might say, “We know your team has incredible knowledge of legal applications. Your client success managers understand how to support attorneys. You’ve even developed a security proposal tailored specifically to that market. We see your success, and we want your help as we integrate you into our organization.”
[00:21:33] That’s what it means to flip the script—to focus more on them than on you.
[00:21:45] Steve: That makes perfect sense. What I’m hearing is that people want to know, “What’s in it for me?” At companies like ours, and for a lot of MSPs, employees may even own part of the company—through options or equity. So they’re wondering, “What’s going to happen to my stake?”
[00:22:25] They’re also thinking about their team. If someone’s a high-performing employee, they’re likely concerned about their coworkers too. It’s not just, “Will I be okay?” It’s, “Is my team staying intact?” Because if their teammate leaves, it affects how they do their job.
[00:23:03] Dori: Exactly. People with strong teams worry just as much about their peers as themselves. They’re not only asking, “Do I have a place here?”—they’re asking, “Does my team have a place here?”
So when we communicate that they’re valued—not just the individuals, but their team dynamic—it makes a real difference. You wouldn’t be acquiring them if they weren’t valuable. It’s just about expressing that clearly.
[00:23:50] When we talk to external clients, we focus on outcomes, not just tactics. We can apply that same thinking internally. What outcomes are we expecting from this acquisition? Share the vision—and share it with energy.
[00:24:13] And here’s a pro tip: If this isn’t your first acquisition, bring in someone who’s lived through the last one. Have them speak during your all-hands kickoff. Let them tell the story. “It was bumpy at first, but here’s where we are now.”
[00:24:33] Employees will believe it more when they hear it from someone who’s been in their shoes.
[00:24:38] Steve: That’s a great idea. You’ve retained the staff, so bring one of them in and have them say, “Hey, I was in your spot. Our company got acquired. It wasn’t all smooth sailing—but here’s what I can tell you now.” That’s huge.
[00:25:21] Dori: That leads right into the next point: using recognizable language. You mentioned earlier, Steve, that this is all new to you—and that’s the point. A lot of companies roll out communications using corporate jargon or M&A buzzwords that people don’t understand.
[00:25:46] Terms like EBITDA, margin, shares—they don’t mean much to the average team member. Instead, use language they already know. Everyone in an MSP knows what onboarding means, or what a roadmap looks like.
[00:26:12] So don’t say, “We’ll begin strategic integration next quarter.” Say, “In the next 30 days, we’ll start moving our tools onto your systems. We’ll set you up in the help desk. Here’s what the rollout will look like.”
[00:26:30] Be clear about cadence too. Say, “We’ll meet weekly for the first month, then bi-weekly for months two and three.” That’s a rhythm they can understand.
[00:26:47] Translating your integration plan into their language helps put people at ease. It’s not just about what’s next—it’s about making next steps feel familiar.
[00:27:00] This is just one aspect of communication, but it matters. Hopefully, this gives listeners a framework they can continue using throughout the entire integration process.
[00:27:16] Steve: Alright, we’re going to take a quick moment to launch a poll. No sales gimmicks here—we’re just looking to get to know you better so we can keep improving the content we deliver.
[00:27:40] One last thing, Dori—we’re about halfway through. How’s the slide deck looking?
[00:27:42] Dori: It’s looking good! I’ll keep us moving.
[00:27:45] Steve: Perfect.
[00:27:48] Dori: Let’s talk about the second C: Clarity. Clarity is critical because it builds confidence. If you’re a parent, you know kids need clarity. If you’re an employee, you know you need it too—in terms of what’s happening and how you contribute.
[00:28:10] I’ve worked with acquisitions where people didn’t understand how their role mapped to the new company. And it leads to discomfort. They’re asking themselves, “How do I continue contributing the way I used to?”
[00:28:34] It doesn’t need to be complicated. Start with a simple org chart. Something they can refer back to that shows who’s who in the new organization.
[00:28:56] Clarity will continue to matter throughout the integration, but you’ve got to start somewhere. And one way is to look at each key framework in your MSP and build a roadmap for how you’ll integrate each one.
[00:29:26] For example, account management. A common post-acquisition move is to reassign clients to the most tenured client success managers. But what if Company A does things differently from Company B?
[00:29:49] Maybe Company A does QBRs and annual IT budgets, and Company B doesn’t. That disconnect creates inconsistency—and clients feel that immediately.
[00:30:09] Dori: As you integrate two companies, it’s important to create consistency across core processes. That doesn’t mean everything will match perfectly right away. You’ll find gaps. You’ll find overlap. The key is to take a process-driven approach and ensure you have a clear plan.
Another question that always comes up is: how fast should you roll out changes?
[00:30:59] Let me share an experience. At one of the MSPs I worked with, I was responsible for integrating the professional and managed services teams into the larger organization. That included rolling out a new RMM tool. The acquired team was already under a lot of pressure. They didn’t have much bandwidth to take on more.
[00:31:40] So, I thought I was helping by delaying the rollout of the RMM integration. In reality, it created more frustration. The team lacked visibility into the full client base. And the rest of the company couldn’t see their clients either. We were out of sync.
[00:32:00] That experience taught me a valuable lesson: while you want to balance urgency with readiness, sometimes you need to move forward—quickly—so that everyone’s on equal footing and has access to the same systems and information.
[00:32:13] I had a client success manager who championed change. The faster we moved, the better the company operated—as long as people were properly trained and supported.
[00:32:32] Steve: Yeah. When it comes to integration, speed matters, sure. But what matters even more is planning. Integration is about communicating clearly and organizing steps in a way that everyone understands. Whether it’s transferring a domain name or reassigning systems, you need a roadmap.
[00:33:23] Maybe it’s five or six months before a domain transfer happens—and that’s fine. But if you communicate the timeline and make sure you have access and support lined up, everyone can stay aligned.
[00:33:46] You’re going to mess something up. Especially if this is your first acquisition. That’s okay. What’s important is building a process that allows for corrections when needed.
[00:34:01] Dori: Absolutely. What we don’t want is to leave employees on the hook when clients start asking questions. Engineers especially hate being asked something by a customer that they don’t know how to answer.
[00:34:20] We need to arm them with the right information.
Let’s move to the third C: Culture.
[00:34:43] Culture is often cited as one of the most important—and most fragile—aspects of a successful integration. We know it’s going to change when you move from an $8M MSP to a $75M MSP. The question is: how do you preserve the best parts of the original culture?
[00:35:00] Step one is understanding what kind of culture the acquired company has. In my experience, most companies lean into a dominant culture style, even if they show traits of others. Here are a few examples:
[00:35:11] – Clan culture: common among smaller MSPs. Feels like family. Highly collaborative.
- Create culture: entrepreneurial, fast-moving, innovation-first. I once worked with an MSP where the CEO had the entire team read Blue Ocean Strategy—great book by the way.
[00:35:53] Steve: Quick sidebar—“blue ocean” means uncontested market space. “Red ocean” means blood in the water, intense competition. “Blue ocean” is doing something no one else is doing. Hard to pull off for MSPs, but the idea’s compelling.
[00:36:34] Dori: Totally. And even if it’s aspirational, it may still shape the current culture.
You might also encounter:
- Market culture: very competitive, focused on external positioning. I see this often in security firms.
- Hierarchy culture: very structured, process-oriented. Common in larger or enterprise-level orgs.
[00:37:17] Once you’ve mapped out the culture, then comes the question: how do you blend it with yours?
One of my favorite case studies comes from Starbucks.
[00:37:42] Starbucks started as a single store in Seattle. In 1987, Howard Schultz acquired it and reshaped the company around the European coffee house model. He introduced core values like connection, quality, and service excellence—and trained on those globally.
[00:38:00] What he did brilliantly was maintain consistency across the brand—menu, recipes, product—but allowed local flexibility.
[00:38:32] So an urban Starbucks might have a sleek, quick-service coffee bar. A suburban location might have overstuffed chairs and room to linger. They called it a “global footprint with local soul.”
[00:39:21] That concept is powerful for MSPs. You can scale successfully without flattening local culture.
You can:
- Keep local events active
- Maintain nonprofit partnerships
- Let local offices retain personality and rhythm
[00:39:51] When your team feels like their history and voice still matter, you maintain that esprit de corps—the sense of camaraderie and purpose that holds teams together.
Now let’s move to the fourth C: Continuous Improvement.
[00:40:15] Dori: Continuous improvement is critical. Integration doesn’t stop at 30, 60, or even 90 days. Realistically, it can take a full year for things to truly stabilize. While larger MSPs or private equity firms often fixate on a 90-day plan, the reality is—this process takes longer.
[00:40:41] Avoid a “check-the-box” mindset. We’re working with people—staff and customers. You need a real feedback loop. And more importantly, act on that feedback. Your frontline team is where the truth lives. They’ll spot issues, gaps, and overlaps faster than anyone else.
[00:41:06] When you have a strong feedback loop and you act on it, you get real improvement. Be transparent too. You don’t need to reveal everything behind the curtain—but acknowledging when things are hard invites collaboration. It makes people part of the solution.
[00:41:56] Also, watch for early signs of disengagement. People rarely quit overnight. You’ll see it in skipped meetings, reduced participation, signs of burnout. Reach out. Meet for lunch. Have a call. Understand what’s going on. You might turn it around before it’s too late.
[00:42:49] Yes, it’s a lot of work. No, it won’t be perfect. But if you lead with care, have strong plans, communicate clearly, and commit to continuous improvement, your team will be aligned—and rowing in the same direction.
[00:43:06] Steve: That’s awesome, Dori. Before we wrap, we’ve got a few minutes. Any questions from the audience? Thinking about a future acquisition? Need advice?
[00:44:01] Riley in Dallas mentioned his company made three acquisitions in 2022 and 2023. He focused on growth through SDR firms and organic methods. The acquisitions were more expensive than expected, but he’s considering more in 2026–2027.
[00:44:15] Dori: That’s great, Riley. Sounds like the company is really growing. Whether it’s your company or one you’re part of, that kind of momentum is impressive.
[00:44:28] Steve: What would you say to someone who found acquisitions more expensive than expected?
[00:44:28] Dori: I’d want to know—where were the surprises? Maybe due diligence missed something. Maybe customer churn increased. Maybe labor costs outpaced customer revenue. Understanding the gaps is key.
[00:45:28] Steve: Val asked about handling likely layoffs. How should MSPs approach that when teams overlap?
[00:45:56] Dori: This is one of the hardest parts of M&A. Often there’s redundancy—especially in the back office. I’ve seen companies retain top talent even without a current role, just to avoid losing strong people.
[00:47:00] And when layoffs do happen, compensation matters. The best companies offer financial support—30–60 day payouts, bonuses, or tenure-based severance. That support buys time and dignity for the person affected.
[00:47:33] Steve: Is there a standard severance expectation?
[00:47:51] Dori: Most often, it’s calculated by years of service. A percentage of salary multiplied by years worked. It creates fairness and consistency across the board.
[00:48:18] Steve: Riley followed up—his company lost several customers post-acquisition due to ties with the prior owners. Due diligence could’ve been tighter.
[00:48:49] Dori: Organic growth is key—don’t pause it. Some firms even talk to top-tier customers before acquiring. Post-deal, use surveys or check-ins. Make sure customers are on good contracts and that you’re restoring service quality quickly.
[00:50:00] Culture matters here. Customers stay because of the MSP’s culture. And employees stay for the same reason. That’s why retaining local culture should never be an afterthought.
[00:50:07] Steve: Totally agree. I dropped a link to a past session with Bill Tyndall from Contango IT. We talked about Build vs. Buy—organic growth vs. M&A. He said the same thing: don’t pause one to do the other. Both are valuable growth levers.
[00:51:31] Do your due diligence, and acquisitions can be a powerful way to accelerate growth—top line and bottom line.
[00:51:40] Dori: I recently spoke to the CEO of a large MSP who said acquirers today are specifically looking for MSPs with strong organic growth. Post-acquisition, they want assurance that momentum will continue without relying solely on more deals.
[00:52:24] Steve: I also shared a past session I did with Tim Conkle from The 20. He’s a polarizing figure, but full of insights. One key idea was building a platform that other MSPs already operate on—PSA, RMM, NOC. If they’re already aligned, acquisitions and integrations become much easier.
[00:54:19] Maybe you can’t replicate The 20’s scale, but even a lighter version of a pre-built platform can help streamline acquisitions.
[00:54:42] Dori: Absolutely.
[00:54:44] Steve: Alright—let’s wrap up. I’ve got one final slide for you all. Please tell us how we did. I’m dropping a tiny URL in the chat now. Just two questions: happy face/sad face and a short feedback form.
[00:55:23] Dori: I’d really love your feedback. We put a lot into these sessions, and we want to bring the right level of value. Your input matters.
[00:55:45] Steve: Couldn’t agree more. It helps us improve every time.
[00:56:05] If you have questions we didn’t answer, pop them into the survey. I’ll pass them to Dori, and you two can connect from there.
[00:56:27] Dori: Reach out anytime. It doesn’t cost money to chat.
[00:56:32] Steve: No, but I won’t turn down food! Alright everyone—
[00:56:43] Dori: Thanks so much, Steve. And thank you all for your time.
[00:56:50] Steve: Take care, everyone. Have a great day.
[00:56:52] Dori: Bye.
