Episode 43
Dave Cava
Encore Strategic Consulting
“Vertical Focus = Maximum Valuation”

Dave Cava was COO and Partner of Proactive Technologies a recently acquired MSP focused on the Financial vertical, specifically hedge funds and traders. By focusing on a single vertical Proactive found themselves quickly identified as a leader in the space.
Vertical specialization kept a steady stream of leads coming their way and helped boost their valuation beyond that of the traditional MSP. Dave shares the steps he and his partner took and what he is doing today.
About This Episode
In this episode of MSP Business School, Dave Cava (formerly of Proactive Technologies) shares with us how a vertical focus delivers tremendous payoffs. Centered almost exclusively on the financial sector, Dave and his partner grew Proactive into a very successful MSP: in the span of just 11.5 years, they were bringing in $10 million annually before a very profitable acquisition in 2019.
While many MSPs are hesitant to have such a narrow approach and instead choose to remain generalists, Dave reminds us that being the top expert and “go-to” business in a single, particular field provides an unparalleled advantage.
1:23 – Dave gives us a brief background about his journey to the MSP space. He shares how he “accidentally” got into the business, and how his outside relationships were what shaped the company’s focus. He discusses Proactive’s acquisition and how the timing could not have been more perfect for him and his family.
7:47 – The hosts ask Dave to share how he grew Proactive so quickly and successfully. He talks about their first year as an MSP, and reiterates the importance of relationships, building and maintaining a solid reputation, and being the experts in one particular area.
13:03 – Dave dives into how Proactive set themselves apart from other MSPs. He shares how he was resistant to being so narrowly focused at first, until he realized the advantages. He also explains how being an expert in one field can positively affect your sales calls in other fields.
18:51 – We talk about what Proactive did right and what they could have done better. Dave offers his hindsight knowledge, saying what he wishes he and his partner had implemented when they founded Proactive. He also shares his next chapter with us, addressing the most common pain point he hears from MSP owners.
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