Does anyone have experience acquiring Government Contracting businesses?

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October 23, 2023

by a searcher from University of Pennsylvania - The Wharton School in New York, NY, USA

I am looking to connect with anyone who has acquired government contracting businesses, specifically looking to understand how certifications transfer after acquisition i.e. WOSB, 8A, Hubzone, EDWSOB... I also want to learn more about the industry and operations post-acquisition.

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commentor profile
Reply by a searcher
from University of Pennsylvania in Tucson, AZ, USA
I don't have any direct experience with acquiring that sort of business, but the current paradigm includes significant advantages for the categories you are describing. There are some Alaska Native-owned companies that have been quite successful becoming prime contractors due to special considerations to that status. Another angle is that some prime contractors will be incentivized to subcontract to 'set aside' groups like Hubzones, WOSB, etc.


One thing to be careful of- there is a status called VCOC (venture capital operating company) which negates small business status. VCOC will be triggered if >50% is owned by investment firms (PE/VC, etc.)


Lastly, there are rumors that the same group that successfully challenged affirmative action is making moves to challenge set asides. I haven't heard anything beyond rumors but might be worth knowing.
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Reply by an investor
from Yale University in McLean, VA, USA
Hi ^redacted‌, I'd be glad to connect with you on this... I've spent 25 years working in the government contracting space; bought a small gov IT services business in 2011, grew it to 60x original value and sold it for 11x EBITDA multiple in 2021 to Mid-Market PE. ^redacted‌ and I recently launched Mission Support Partners (www.missionsupportpartners.com) to invest in others making small biz acquisitions this space. I'd be glad to discuss your questions on certs as well as industry and operations; I'm at: redacted
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