Results of the 2016 Government Contractor Study show that 28 percent of government contractors are using mergers, acquisitions and divestitures as a strategy to remain competitive in the market. Large businesses are significantly more likely to use the tactic than small businesses (28 percent versus 15 percent).
Why the increase in mergers and acquisitions? A panel of industry experts discussed the reasons around this strategy in a Financier Worldwide article, “M&A in the government contract sector.”
Panelist Holly Roth, partner at of Kelley Drye & Warren LLP, said, “Many government contractors, large, mid-size and small, are focusing on strengthening existing capabilities, expanding relationships with agencies that are current customers or broadening their reach into new, synergistic opportunities.”
Marc Marlin, managing director at KippsDeSanto & Co., said: “Many public and private companies are evaluating their portfolios and refocusing growth strategies on ‘core’ capabilities, which has led to both highly strategic acquisitions, as well as divestitures.”
For companies looking to be acquired, David Ayres, founder and president at TATE, Inc., said: “Firms with advanced technology appear to be in the best position for acquisition.”
Read the full article for the in-depth discussion of M&A in government contracting.
Learn More About the Study
On Thursday, Market Connections will release this new research at the 2016 Government Contractor Breakfast at the TEGNA Conference Center in McLean, Va. The national study of government contractors focuses on best practices of winning contractors in several areas, including strongest marketing initiatives and marketing budgets and challenges. There is still time to save your seat. Register today.
2016 Government Contractor Study Breakfast
June 30, 2016
TEGNA Conference Center
Details and registration at www.marketconnectionsinc.com/govcon2016.