This briefing covers active market intelligence, regulatory guidelines, and tactical capture recommendations for federal and defense contractors pursuing opportunities in this procurement classification.
Overall M&A transaction activity for government contractors has been strong thus far in 2015. Now buoyed by an improving economy, near zero percent interest rates, and the recent Obama Administration’s 2016 budget proposal, requesting nearly $4 trillion, M&A volume seems likely to experience a notable increase. The 2016 budget especially is expected to influence M&A activity in the government contracting industry. First, many larger companies will continue to divest non-core business units and restructure around priority spending areas. Second, with spending likely to increase in information technology, cyber security, big data analytics and cloud initiatives, companies with those capabilities will continue to be sought out. Lastly, with the uptick in government spending, consolidation among mid-tier companies is gaining viability.
For owners with an interest in selling their government contracting businesses, market conditions could not be much better. It looks like we have weathered the worst of sequestration and government spending is again on the increase. Also, between cash balances and available credit, there is plenty of financing available to buyers at low interest rates.
Selling any business is a complex venture that involves planning and many considerations. To maximize your probability of success, don’t skip these essential steps when preparing your government contracting business for sale:
Read more: Top 5 Tips for Successfully Selling Your Government Contracting Business
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