Archive for category: Federal Mergers and Acquisitions

Uncertainties in the marketplace—combined with many firms being in a strong cash position—have created an environment ripe with opportunities for mergers and acquisitions.  M&A tends to focus on two primary scenarios.  The first is a tactical acquisition that increases an organization’s size and scope in its market. It often adds capabilities that can be leveraged into existing customers.  “Bulking up” can also make a company look more attractive as a component of an exit or sale in the future and in the interim can provide additional resources.  The second major acquisition type is strategic.  The acquisition extends a company into a new market, agency or command.

In either circumstance, there are risks. Strong due diligence coupled with a reasonable price are the best measures to avoid an unsuccessful acquisition.  Whether a firm will be a buyer or seller, it is important to conduct your own valuation, due diligence, and internal review, over and above financial valuation, before a buyer, seller, bank or investor looks at your firm.

To discuss valuation reviews, contact Sid Jaffe at (703) 855-3160.