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.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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