The Franken-Stack Dilemma: Why MSP Roll-Ups Inherit Technical Debt Faster Than They Can Fix It

Introduction: The Promise vs the Reality

Private equity has poured billions into MSP roll-ups over the last decade.
The thesis is familiar: acquire strong regional operators, standardise operations, unlock scale, and expand margins.

On paper, it works.

In reality, most MSP platforms hit an invisible wall somewhere between acquisition #2 and #4.

That wall isn’t culture.
It isn’t talent.
It isn’t even customers.

It’s the Franken-Stack.

A patchwork of PSA tools, RMM platforms, ticketing systems, billing engines, documentation tools, security products, and — increasingly — ungoverned AI tools. Each acquisition adds more limbs. None are cleanly stitched together.

Eighteen months in, many PE-backed MSP platforms are running four to seven overlapping core systems — and integration debt is compounding faster than it can be retired.

What Is the Franken-Stack?

The Franken-Stack is what happens when:

Every acquired MSP brings its own “best-of-breed” tool choices
Integration is deferred in favour of “business continuity”
Standardisation is treated as a future project, not a Day 1 mandate

Over time, the platform accumulates:

Multiple PSAs
Multiple RMMs
Inconsistent service catalogues
Different billing logic
Conflicting automation rules
Duplicate security tooling
Shadow AI usage outside governance

Individually, none of these decisions look fatal.
Collectively, they create a system that cannot scale cleanly.

Why Franken-Stacks Form So Quickly in MSP Roll-Ups

1. Integration Is Always Deprioritised at Close

Immediately post-acquisition, leadership focuses on:

Retaining customers
Retaining staff
Maintaining SLA performance

Tooling integration feels risky, disruptive, and non-essential — so it’s postponed.

Six months later, the operational cost of change has doubled.

2. “Best of Breed” Becomes “Best of Chaos”

Each MSP has optimised locally:

“This PSA works best for our customers”
“Our engineers prefer this RMM”
“We’ve customised this billing flow heavily”

At platform level, these optimisations clash.

What worked well for one £5–10m MSP becomes unmanageable across a £50m+ group.

3. Tool Consolidation Is Treated as a Technical Exercise

Most roll-ups approach consolidation as:

“Let IT figure out which tools to migrate.”

In reality, tooling choices encode:

Service definitions
Pricing logic
Risk posture
Compliance assumptions
Automation maturity

You can’t swap tools without redefining how the business actually runs.

4. Every Delay Compounds Integration Debt

The longer the Franken-Stack lives:

Custom integrations multiply
Staff retrain around workarounds
Automation becomes brittle
Reporting becomes unreliable

Eventually, no one fully understands the system — including leadership.

The Real Cost of the Franken-Stack

The biggest damage isn’t technical. It’s financial.

Margin Erosion

Duplicate licenses
Parallel support teams
Manual reconciliation work
Automation that can’t scale across brands

Slower Value Creation

Cross-selling stalls
Shared services never fully materialise
EBITDA uplift slips quarter by quarter

Governance Blind Spots

Inconsistent security posture
Unknown AI usage
Fragmented audit trails
Inability to see risk at portfolio level

Exit Risk

At exit, buyers don’t just see revenue — they see complexity.

And complexity discounts multiples.

Why Traditional Integration Fails

Most MSP roll-ups try one of three approaches:

1. Big-Bang Standardisation

High disruption. High resistance. Often rolled back.

2. Endless Discovery Projects

Six months of workshops. No systems shipped.

3. Dashboard Overlays

Visibility without control. Insight without leverage.

None address the root issue: lack of a unifying operational model.

The Alternative: Configuration Over Creation

The platforms that integrate successfully do something different.

They don’t start with tools.
They start with standards.

What This Looks Like in Practice

A standard service catalogue defined once
A canonical data model for tickets, assets, billing, and risk
Pre-approved automation patterns
Central governance for security and AI usage
Local flexibility at the edges — not the core

Instead of asking:

“How do we integrate all these tools?”

They ask:

“Which 20% of systems solve 80% of the problem — immediately?”

From Franken-Stack to Platform

The goal isn’t perfection. It’s momentum.

Modern MSP platforms win by:

Deploying working systems on Day 1
Standardising what matters first
Leaving edge cases for later
Making deviations visible, not invisible

Integration becomes a repeatable motion, not a bespoke project.

What This Means for PE Operating Partners

If you’re overseeing an MSP roll-up, ask yourself:

How many core systems do we currently operate?
Can we produce a single, trusted view of operations today?
How long does it take to onboard a new acquisition into “platform mode”?
Where are automation and AI already leaking outside governance?

If the answers feel unclear, the Franken-Stack is already forming.

The Bottom Line

MSP roll-ups don’t fail because of bad strategy.
They fail because integration debt quietly eats the upside.

The Franken-Stack isn’t inevitable — but it is predictable.

And predictable problems can be designed out.

What next?

Is the Franken-Stack already forming in your portfolio?
Take the MSP Integration Readiness Assessment →

A practical diagnostic to:

Identify where integration will stall
Quantify hidden operational drag
Prioritise standardisation for maximum EBITDA impact

If you’re past acquisition #2, this assessment will tell you exactly where to focus next.