By Forbes
Mergers and acquisition (M&A) deals are fraught with pitfalls and questions, delivering an equal measure of headaches to both buyers and sellers.
Should I sell? Is this the time to buy? Who will buy my company? Is this a good company to spend my money on? Am I getting fair value? Am I overpaying? Fear and anxiety are just part of the process. Add the arcana of government regulations, and the M&A journey gets even harrier.
Why? Because buying or selling government contractor (GovCon) companies is, frankly, quite different from commercial M&A deals. For example, one must grapple with what exactly is being exchanged when a GovCon company with five or 10 years of backlog sells. Transferring federal contracts easily is no small feat, and requires that these deals be done as stock, not asset, deals.
“Asset sales are not always the best way to buy a business, especially when acquiring government contractor companies.” -Shruti Gurudanti, Rose Law Group Partner and Director of Corporate Transactions
