As the old saying goes, good things come in threes... and Redsquid accelerated its growth plan last month with a trio of acquisitions that help keep the Herts-based MSP on track to achieve its £150 million revenue goal.
That's according to CEO Sohin Raithatha, who provides a masterclass in how to grow your business effectively, efficiently and quickly through M&A.
Few MSPs demonstrate the transformative impact of a solid business growth strategy better than Redsquid: Last month the company augmented its acquisition tally with the purchase of London-based cyber firm Computer Security Technology, Surrey-headquartered Gamma partner Penstone Communications (boosting its UC operation) and Scotland based Itek. These deals also show how Raithatha is reshaping Redsquid and evolving in different directions – including new territories.
“Our company could become a unicorn within the next three to five years as we expand across Europe and the USA,” he stated. “We will achieve this by staying at the forefront of technology, continuing to be solutions-led, investing in our people and their skills, understanding customer needs and becoming a data-driven organisation, while acquiring and merging with culturally aligned businesses to accelerate growth.”
Strong pedigree
Over the past year Redsquid tripled its headcount and revenue, so Raithatha is building on stronger foundations. The MSP quadrupled EBITDA since 2022 and client numbers have surged to circa 1,800. “Last year we completed three acquisitions, reshaped our M&A strategy, entered the film and production industry, opened a branch in Aberdeen, became a B Corp and were recognised by The Sunday Times as one of the best companies to work for,” said Raithatha. “In the first three months of 2025 we aimed to strengthen our senior management team, complete three acquisitions within three months and we’ve done it all during the first two weeks of our new financial year.”
To say that Redsquid is going places quickly would be to greatly understate the extent of Raithatha’s ambition as he doubles down on his latest clutch of acquisitions. They also put a spotlight on Raithatha’s super-slick transaction process. “Completing these deals simultaneously is logistically more efficient from the perspective of our lawyers as well as from a momentum standpoint,” he explained. “By conducting due diligence over a three or four month period we maintain a continuous workflow aligned with our objectives without frequent interruptions. This approach ensures that once completed we can move forward without having to revisit tasks shortly thereafter.”
Our company could become a unicorn within the next three to five years as we expand across Europe and the US
However, noted Raithatha, the disadvantage is that under time constraints there may be a risk of rushing through processes and potentially cutting corners when handling multiple tasks. “It is crucial to remain disciplined and ensure thorough due diligence,” he added. “If necessary, deadlines should be flexible and adaptable to prevent compromising on the quality of work.”
Key learnings
Raithatha also pointed out that while acquisitions can be challenging each deal provides valuable learning opportunities. “It’s crucial to stick to the process and not cut corners, even when rushed,” he reiterated. “If someone you know is selling a business, use the same thorough approach to avoid issues and don’t be afraid to pull out if due diligence doesn’t hold up. Staying level-headed until everything is finalised can save you from losing millions on a bad deal. Losing a few thousand in fees is more feasible than risking millions on a business that isn’t right for you, your customers or your team.”
Meanwhile, says Raithatha, an effective acquisition strategy also requires a crystal clear understanding of the vendor’s practices, how they conduct their business, treat employees and service customers. Other key considerations include evaluating tools, systems, customer profiles, geographic reach and identifying skills or technology gaps. “Over the coming years these assessments will likely evolve as our strategy includes larger acquisitions and expansion into Europe and the USA,” added Raithatha.
The key to achieving integration success, he noted, is effective communication. “This is essential, both for internal teams and with vendors,” he explained. “Ensure you have comprehensive documentation prepared, including customer and employee communications. It’s also crucial to have sufficient bandwidth and capacity within your team. Also, learn from past acquisition mistakes by conducting thorough post-analysis.”
Raithatha swears by his methodical integration plan and says that to achieve the financial and strategic objectives of deals it’s also essential to integrate data and systems successfully. “This is the only way to create long-term value,” he noted. “Maintaining value creation requires data that helps us serve customers and prevent churn. This is why we keep the customer at the heart of all our acquisitions and only proceed where we can maintain or improve the day to day customer experience.”
Trusted advisor
Redsquid’s customer base has expanded significantly to encompass various sectors including education, pharmaceutical, financial services and construction. And as a trusted advisor, Raithatha says it is especially imperative to explore how AI can benefit clients. “This exploration can take various forms, including workshops and demonstrations that showcase how we use AI,” he stated. “Opportunities in AI and security are growing – and customers prefer a single supplier. It is crucial therefore to ensure that you have an engaged and well-equipped workforce capable of meeting customer needs with the right skills and talent. Fostering and maintaining an integrated culture that supports and enables customer satisfaction is also key.”
Looking to make an acquisition? Here’s Raithatha’s top tips...
Understand why you want to acquire businesses. Can you achieve your goals organically? Identify the type of business you seek... security, technology, people or location. Decide how you will fund the acquisition and ensure you understand that process. Hire top advisors, even if they are costly, as they are crucial to getting it right. Maintain a solid pipeline and avoid desperation. And while it is exciting to have a first meeting with a potential M&A, always remember that there are many opportunities available.