Investors and Government Contracting

by a searcher from Thomas A. Edison State College

3 years ago

I am looking at a company that I believe has tremendous upside potential as a government contractor. The strategy would be receiving my SBA 8(a) certification and leverage my relationships to partner with larger government contractors in the industry. Given that strategy, there are rules around investors and the amount of equity I can offer. 

I'm wondering if any investors have experience with these types of opportunities. Did you invest? Why or why not? What would have made the deal more attractive to you if you chose not to invest?

4 likes
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6 comments

investor from The University of Texas at Austin - Red McCombs School of Business

Micah, I just joined searchfunder as a potential investor. Are you still looking at federal contracting acquisitions. I run a govcon firm called corner alliance.

3 years ago | like reply | 0 likes

searcher from Stevens Institute of Technology

Micah - I'm not an expert in government contracting but I have worked for multiple construction companies in the government construction space. Set-aside certifications generally require the majority owner (more than 51% shareholder) to oversee daily operations and maintain ownership and control. In the construction space, more than bringing in outside investors, the issue is leverage and how the surety (bonding) company will provide you with a bond program. Your investors have to understand that the bonding company is the first lien holder over the bank and other investors.

3 years ago | like reply | 0 likes

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