I'm looking at a potential acquisition of a facilities support company in the federal contracting space. The company itself is not an attractive acquisition target as it's showing a loss, but there are two contracts (total of $2.4mm per year) that if completely separated from the rest of the company would generate substantial profit. Each contract runs at a 40% margin, was recently renewed, and has project managers onsite. Owner involvement has been limited to a few hours per month. The sale would also include their GSA Schedule.
The owner is 82 years old and is open to a reasonable offer. I'd like to base my offer on the value we see in the business which would be those two contracts. Has anyone ever acquired standalone government contracts and/or would be able to share any insights on valuations?
Does anyone have any experience with Government Contracting Companies?
by a searcher from Millersville University of Pennsylvania
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
67 views
6 comments
Sign in to see all replies.
Create an account.