04 Aug 3 Moves That Make Your IT Services Firm Worth More to Buyers
Vertical specialization is one of the most reliable ways to raise both growth and valuation in IT services M&A. Focus on one or two industry verticals, build the sales team to match, and your firm becomes worth more to buyers.
Most IT services firms start as generalists because it is the fastest path to revenue. But in a market where AI is commoditizing technical skill, domain expertise is what buyers and clients pay for. In Episode 254 of Shoot the Moon, Mike Harvath, Ryan Barnett, and Matt Lockhart break down why vertical focus shortens sales cycles and lifts valuation, how the hunter and farmer sales roles work, and how to hire and compensate for a vertical model. They close with three practical steps you can take this week to find and commit to the right vertical.
Chapters
- 0:00 – Cold open and intro
- 4:05 – Specialize, verticalize, productize: the framework
- 7:00 – Why vertical expertise matters more in the age of AI
- 9:30 – Why most IT services firms default to generalist
- 12:30 – What verticalizing takes, and the payoff
- 16:50 – The sales team: hunters, farmers, and support roles
- 20:40 – Hiring for a vertical: fish where the fish are
- 24:10 – Compensating hunters vs farmers
- 28:00 – What buyers see: vertical focus and valuation
- 32:40 – Where to start this week
- 35:30 – Wrap-up
Key Takeaways
- AI is commoditizing technical skill, so domain expertise is the differentiator buyers pay for.
- A vertical focus shortens sales cycles, sharpens marketing, and tends to lift valuation.
- Selling is a team sport. Hunters win new logos, farmers grow accounts, with a handoff inside the first 12 months.
- Concentrating in a vertical is a strength; depending on a few specific clients is a risk buyers discount.
- Start by analyzing where your revenue already concentrates, then commit to a market you are passionate about.
Links & Resources
- Episode archive: Shoot the Moon series
- Valuation calculator: See what your firm could be worth
- Talk to us: Schedule a confidential conversation
- Listen on: Apple Podcasts or Spotify
About Revenue Rocket
Revenue Rocket is a sell-side and buy-side M&A advisory firm focused exclusively on IT services companies, including MSPs, cybersecurity, cloud, custom application development, and VARs. Whether you are looking to buy, sell, or grow, Revenue Rocket can help you make your next move the right one.
Tags: #MergersAndAcquisitions #ITServices #MSP #ShootTheMoon #RevenueRocket #ExitStrategy #VerticalSpecialization #HunterFarmer