New Ownership Model brings together Four Best-In-Class
Industry Leaders as partners in New Charter Technologies
(Palo Alto, CA) August 19, 2020 – New Charter Technologies today announced the acquisition of four founding companies and their decision to bring this model to the technology industry.
Mitch Morgan, New Charter Technologies CEO explains, “The industry is changing and evolving. We believe this next turn will provide even greater opportunity for companies that have the capability, capacity, and scale to take advantage. By partnering with New Charter, the right companies will have this opportunity.” The founding MSPs enjoy the benefits of an enterprise scale, PE-backed Managed Service Provider platform (financial depth, economies of scale, shared knowledge and resources, accelerated growth, North American footprint, access to capital, etc.) while maintaining autonomy, culture, leadership, personal investment/financial upside, and other benefits of running your own business.
Mitch partnered with Oval Partners, a Palo Alto-based investment firm founded by John Knoll and Jake Mizrahi who understand the value of this differentiated approach in which MSPs are highly aligned but not highly integrated.
John Knoll commented, “The MSP market fits perfectly with Oval’s unique approach of investing our permanent capital in true partnership with founders of well performing businesses. High caliber MSP owners interested in this model stand to benefit strategically and financially from this partnership as we endeavor to build unprecedented scale in the MSP market.”
New Charter Technologies features the following highlights:
- Structured as a true partnership, with MSP owners taking some cash off the table and then reinvesting into New Charter in a single class of shares alongside Oval Partners
- New Charter’s operating model provides strategic leadership and development support, enabling entrepreneurs to improve their businesses through best practice and resource sharing between operating companies
- In addition to continuing to run their business, owners also become part of New Charter’s leadership team to help guide the larger business as it becomes a leading national MSP
- New Charter quickly added four industry-leading, Best-in-Class MSPs to the platform, with more to come
New Charter companies are at the high end of operational maturity and financial performance. Through collaboration and scale, the businesses can perform at an even higher level. MSP owners are partners in New Charter, and by re-investing in the platform, greater value is achieved for clients, employees, and partners.
According to Morgan, “We are so fortunate to have attracted four extraordinary companies, with proven leadership, and a legacy of high performance. The owners of these companies have re-invested in the business, and are deepening their commitment to their employees and clients”
The founding group includes the following companies; PennComp Outsourced IT – Houston, TX, ActiveCo Technology Management – Vancouver, BC, Apex Technology Management – Redding, CA and, DCG Technical Solutions – Los Angeles, CA.:
PennComp Outsourced IT
Houston, TX
“New Charter is collaborative and open. We are running our business and they are here to offer support, leadership, guidance and capital… It’s all about how can we help!” — Scott Young, Owner, PennComp Outsourced IT
ActiveCo Technology Management
Vancouver, BC
“What’s even better is I can still stay in – not just as an employee – but as a true partner… while I’m growing the firm I’m also growing the valuation of the entire group of companies.” – Sam Goh, Owner, ActiveCo Technology Management
Apex Technology Management
Redding, CA
“In building a trust relationship with (Mitch and Oval Partners) you realize they are both sound business operators and people of character and integrity.” – Scott Putnam, Owner, Apex Technology Management
DCG Technical Solutions
Los Angeles, CA
“Our shares are identical to those of the PE firm… (giving us) a pathway to double-digit multiples on invested capital – NOBODY is doing that!” – Brent Whitefield, Owner, DCG Technical Solutions
New Charter anticipates adding numerous companies per year in building out the national platform. The acquisition effort is headed up by Dan Ruhl, Partner at Oval Partners. Dan described “New Charter offers the business owner a way to achieve cash off the table today, a way to invest in the same class of shares as Oval, benefit fully from the build-out, and continue to run their current business.”
For questions about our strategy, valuation, or the reinvestment, MSP owners can reach Dan at
[email protected].
ABOUT NEW CHARTER TECHNOLOGIES
New Charter Technologies is building a dream team of MSPs with a passion for leading the industry. Their unique business model provides business owners the opportunity to take come money off of the table and re-invest in a platform that brings greater value than their company could achieve on its own.
ABOUT OVAL PARTNERS
Oval Partners was founded to enable successful owners and CEOs to unlock the full growth potential of their businesses while gaining liquidity today. They partner with management to scale businesses through prudent investment and operational expertise. Together we build valuable platforms that stand apart strategically and financially from many of the smaller players in our industries.
