Case Study: AEC PortCo achieves a successful MSP divestiture with Messina Group

AEC PortCo divests MSP after Messina Group finds 80% support dependence

Messina Group was engaged by AEC PortCo, an international professional services firm in the AEC sector, to address a challenge with a recent acquisition. The client had acquired a Managed Service Provider (MSP) but was struggling with its poor fit, diminishing service quality, and increasing costs. AEC PortCo questioned the value of the MSP and brought in Messina Group to conduct a business assessment.

Messina Group's team executed a detailed analysis of the MSP's financial performance and business practices. Their assessment revealed that 80% of the MSP's support came from AEC PortCo, its largest and most profitable customer, and uncovered immature practices like outdated documentation and a high cost of sale. Based on these findings, Messina Group recommended divestment. The client followed this advice, gaining a clear understanding of the acquisition's lack of value and deciding to divest from the MSP.