Financial Sponsors – Continued Interest in Government Services
Over the last five years, the Government Services industry has seen continuous interest from financial sponsors. Private equity firms have acquired publicly-traded services providers (e.g., Providence/SRA; Ares/GTEC), divestitures of large systems integrators (e.g., Veritas/The SI; General Atlantic & KKR/TASC), and both middle and small market contractors (e.g., Arlington/White Oak Technologies; LLR/Paragon). In 2012, private equity firms and their platforms accounted for one-third of the acquisition activity within Government Services. Financial sponsors are expected to continue to play a significant role in the Government Services M&A market as contractors (public and private) seek new opportunities to grow in an environment of sequesters, budget cuts, and funding uncertainty.
The Draw of Government Contracting
Financial sponsors like predictable cash flows and large addressable markets. Compared to the commercial sector, federal contractors have Continue reading »
Grant Thornton’s Survey on the Government Contracting Industry – Were Your Predictions Right?
Results of the widely known and anticipated 18th Annual Grant Thornton Government Contractor Survey were recently released, offering both surprising and presumably expected insights. Julian Rosenberg, government contract advisory leader at Grant Thornton reported some noteworthy takeaways from the survey in the areas of cost accounting, company relationships with the DCAA, revenue, profit, win rates as well as indirect cost rates. Highlights from the survey also supplied interesting information on M&A activity.
Fringe Benefits are Increasing
In a time of fierce competition within the government contracting industry, accounting practices related to indirect costs and direct labor can be critical factors. According to the survey, Continue reading »
The Corporate Restructuring Trend Continues
The latest round of cost cutting initiatives highlights the government contracting community’s attempt to adapt to the new budgetary environment. Stagnant or declining revenue growth and margin pressure are the new norm, so contractors are analyzing their overhead and SG&A infrastructure to accommodate a lower revenue base and profitability level. Aronson Capital Partners’ monthly Defense Technology & Government Services Market Update reviews the recent restructuring of publicly traded contractors and features additional articles covering:
- S Corporations: Choosing the Right Transaction Structure
- March M&A Activity
- Recent Industry M&A Transactions
Aronson Capital Partners’ February Market Update
Aronson Capital Partners is a leading middle-market investment bank focused exclusively on the government services and technology industry. We invite you to read our February 2013 Newsletter, featuring the following topics:
- Continuing Resolution and Sequestration Update
- DoD Slows Contractor Payments
- Q4 2012 Government IT Services Earnings Calls
- Government Services Industry Performance
- Public Company Comparables Continue reading »
Aronson Capital Partners’ January Market Update
Aronson Capital Partners is a leading middle-market investment bank focused exclusively on the government services and technology industry. We invite you to read our January 2013 Newsletter, featuring the following topics:
- Q42012 Government IT Services Earnings Calls Analysis
- Selected M&A Transactions
- Priority Acquisition Market Analysis: NSA
- Federal Sector Index Performance and Valuations Continue reading »
Aronson Capital Partners’ December Market Update
Aronson Capital Partners is a leading middle-market investment bank focused exclusively on the government services and technology industry. We invite you to read our December 2012 Newsletter, featuring the following the 2012 Government Spending Trends and M&A Recap and other topics:
- Selected M&A Transactions
- Key M&A-Related Tax Provisions of the “Fiscal Cliff” Legislation
- Government Services Industry Performance
- Public Company Comparables Continue reading »
Aronson Capital Partners Advises Hawthorne Services, Inc. on its Sale to Berger Group Holdings, Inc.
Berger Group Holdings, Inc., a global engineering firm with annual revenues of $1 billion headquartered in Morristown, N.J., has acquired Hawthorne Services, Inc. of Charleston, S.C.-a 350-employee firm specialized in facility services and fueling operations at airfields and military bases. Aronson Capital Partners served as the exclusive financial advisor to Hawthorne Services, Inc. in this transaction.
“The acquisition of Hawthorne Services is part of our strategy to grow our operations and maintenance platform,” said Nicholas Masucci, CEO of the Berger Group. “We continue to enhance our support for government operations and maintenance, transportation, fueling services, airfield operations, facilities services and specialized technical services.” Continue reading »
Aronson Capital Partners Advises Novonics Corporation
Aronson Capital Partners (“ACP”) is pleased to announce the acquisition of Novonics Corporation (“Novonics”) by Camber Corporation, a portfolio company of New Mountain Capital. ACP served as the exclusive financial advisor to Novonics Corporation in this transaction.
Headquartered in Washington, DC, Novonics is a leading software development and engineering firm specializing in simulation-based training, command and control, and information management technologies for U.S. Department of Defense (“DoD”) and international partners. The Company’s growing employee base has a unique fluency in rapidly evolving technologies that provide customers with solutions in the areas of warfare simulation software development, integration of tactical and training systems, virtual world technologies, instructional system design, interactive courseware development, and the preparation of fleet synthetic training events. Continue reading »
Aronson Capital Partners’ November Market Update
Aronson Capital Partners is a leading middle-market investment bank focused exclusively on the government services and technology industry. We invite you to read our November 2012 Newsletter, featuring the following topics:
- Defense Contractors Build Up Cash Balances
- Selected M&A Transactions
- Industry Updates
- Government Services Index Performance and Valuations Continue reading »
Aronson Capital Partners’ October Market Update
Aronson Capital Partners is a leading middle-market investment bank focused exclusively on the government services and technology industry. We invite you to read our October 2012 Newsletter, featuring the following topics:
- Healthcare IT Spotlight: Next Generation Initiatives at VA
- Selected M&A Transactions
- Industry Updates
- Federal Sector Index Performance and Valuations Continue reading »
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What We Are Writing
- A Marriage of Inconvenience: GSA Schedule Contracts & The Contractor Code of Business Ethics & Conduct Clause
- Emerging Small Businesses: To Grow Your Business, You Must Plan For Growth
- Government Contracting: Look Before You Leap!
- GSA Schedules – Strategies for Success
- New Employee vs. Independent Contractor Considerations
- Pay on Display – Understanding the Executive Compensation and Subcontractor Data Reporting Requirements & Ramifications
- The GSA Schedule: Your Ticket to the Federal Market (May 2010)
- The New FAR Codes of Conduct and Compliance Program Provisions
- The Seven Deadly Sins (of contract compliance)