Looking for investors in Healthcare Manufacturer to become SDVOSB & 8(a) in GovCon

searcher profile

August 05, 2022

by a searcher from Emory University - Goizueta Business School in Marietta, GA, USA

Hello Searchfunders, I'm looking for investors familiar with not only GovCon but some of the set-aside contracts associated with being an SDVOSB and 8(a) firm. The target has signed my LOI, and I'm heading towards closing. I'm seeking investors that know the space and understand the complexities of equity ownership with these certifications. I have a structure outlined that will work, but I'd like more capital infused with experience in the space. The acquisition is currently selling in a 100% commercial environment now. After the close, the goal would be to learn all of the clients, and employees, then begin to route the certifications for SDVOSB and 8(a) status. I look forward to partnering with organizations in the healthcare, construction, or technology space to create joint ventures that we can both benefit from. From what we have studied in the GovCon space, this is not a prime target for being a Prime contractor but an excellent target for teaming agreements. And as a manufacturer, our NAICS Code limit is not based on revenues but the headcount of people in the organization.


I'm open to any ideas, and thanks for listening.

2
7
97
Replies
7
commentor profile
Reply by a searcher
from Emory University in Marietta, GA, USA
Hello Search Funders, I hope you are doing well. I like to close the loop on ideas and keep people abreast of where I am. I just wanted to let you know where I am in the attached acquisition. I’m choosing to end negotiations on the current acquisition for the following reasons: •My initial purchase multiple was a bit high •The rules associated with Veteran-Owned Businesses and investing limits my options to offer investors •The state of GA would have limited me to only 15 investors that were not “Accredited Investors.” •The target company’s updated income is below the level required to maintain the bank’s minimum income to support the loan •Raising bank interest rates currently at 9%

I also want to take this time to tell you that I’m not done in the slightest. I’m amazed at how much I have learned and how many opportunities there are in the world of small business M&A. I have used all of my best faculties on this journey, and it brought me joy to be fully engaged in a complex project. It even introduced me to wonderful people like yourself in the SearchFunder community. I can’t wait to dust myself off and get back on that ride again. In the famous words of Arnold Schwarzenegger, “I’ll be back!” If you know of any opportunities that may be a good match for me as a 25-year engineering and sales management submarine veteran from a swank MBA school, please feel free to reach out to me and chat.
commentor profile
Reply by a searcher
in Boston, MA, USA
Seems like Jason's found something really interesting here!

For anyone not "in the know" on socioeconomic designator programs with the federal government, the value of being in a Manufacturing NAICS code vs. a Services NAICS code cannot be overstated. You can become a *very* big "Small Business" (per SBA) when they're assessing you on headcount rather than revenues.

https://www.sba.gov/document/support-table-size-standards
commentor profile
+5 more replies.
Join the discussion