POPX’s State of MSPs Report uncovers the biggest hurdles MSPs face when integrating people, processes, and technology following mergers or acquisitions, revealing that technological and cultural barriers are the primary challenges slowing progress.
The study, undertaken by Sapio Research of 250 UK MSPs, revealed that platform and system integration, along with data migration and consolidation, are the top hurdles, each cited by 60% of respondents. These technical issues are compounded by human factors, with poor morale affecting 44% of the surveyed MSPs, and issues with cultural or team alignment affecting 38% or respondents.
Nearly half of acquisitive MSPs (49%) report rising technology costs due to slow migration, while 48% experience operational inefficiencies from poor integration. Additionally, 44% say these delays hinder their ability to satisfy private equity investors, and 39% report delays in improving profitability and EBITDA.
Andy Venables, CEO, POPX, comments, “The MSP market is evolving rapidly, with mergers and acquisitions set to continue apace in 2026. Private equity backers expect quick wins, and we know from investors they are concerned about the delays in integration having a negative impact on EBITDA. And MSPs tell us that integration timelines often slip and costs spiral from people working in siloed systems that slow down service delivery and result in dissatisfied customers – our survey found that 38% of MSPs experience client disruption during integration from minor to more severe.
“As MSPs continue to navigate the M&A landscape, understanding the challenges they face and preparing for them will be crucial to successful integration and sustained growth. Legacy systems and under-utilised enterprise tools like ServiceNow often compound inefficiencies rather than solve them. At POPX we’ve built a platform specifically for MSPs with tools that automate manual processes, standardise workflows, and optimise customer interactions,” says Venables.
The research found client disruption remains a major concern, with 38% of MSPs reporting some level of impact during integration, which puts long-term contracts at risk.
MSPs can end up running two or more parallel businesses because of integration issues. The study found legacy systems add complexity, with incompatible security frameworks (47%) and outdated CRM systems (46%) among the most common obstacles to successful integration. These technology barriers can act as a “tax” on new projects, forcing staff to work across siloed systems and slowing down service delivery to a crawl.
