April 3, 2017 - M&A

What Are Three Trends in Government Contracts M&A?

There have been recent three trends in Government Contracts M&A recently all related to the same theme: buyers are being very picky.

  • Trend 1: A Critical View of Contractors With Large Small Business Content. Buyers will be skeptical that small business contracts, although transferrable, hold significant value.
  • Trend 2: Increase in Asset Acquisitions. Instead of acquiring companies with diverse portfolios, buyers are targeting specific contracts or divisions that give them precisely what they need and leave the rest.
  • Trend 3: Increase in Small Tuck-in Acquisitions. In recent years we some a number of very large transactions. As those acquisitions are being digested, buyers are looking closely at smaller companies that offer specific capabilities, specific customer access and specific intellectual property.