Looking for advice.

searcher profile

June 21, 2023

by a searcher from University of British Columbia - Sauder School of Business in Vancouver, BC, Canada

Im working on a deal to acquire a b2b service company that has been in business for 25 years and does just under 1m in annual revenue. They have had multi site government service contracts in place basically since their inception. These contracts represent 80-90% of the companies revenue and need to be renewed each year. Would this scare you off as a purchaser? Feel free to share any thoughts.

0
4
66
Replies
4
commentor profile
Reply by a searcher
from American Military University in Michigan, USA
80-90% of the company's revenue comes from government contracts? If this is true then it isn't a B2B company but a B2G company. Do you have government contracting experience? Is there reason to believe you could grow the contracting #'s/$'s? I don't know anything how the Canadian government procures things but I do have some background in the way the U.S. government procures services/products. I am happy to discuss if it'd be helpful.
commentor profile
Reply by a searcher
from University of British Columbia in Vancouver, BC, Canada
Thanks for the feedback. I suppose I called it B2B because that represents the industry more typically. I am confident the revenue could be grown via that route.
commentor profile
+2 more replies.
Join the discussion