By Kevin DeSanto, KippsDeSanto & Co.
Much like the waves of the ocean, the government contracting market has seen its shares of ups and downs over the last few decades. However, for much of the past 10 years it’s been on a high, thanks in large part to 9/11 and the simultaneous wars in Iraq and Afghanistan.
However, this hasn’t always been the case. The resolution of the Cold War led to a massive scale-down of military expenditures. This led to tough times and rapid consolidation that created the large government contractors that we know today.
These tough times are coming again, as federal spending cuts, in-sourcing and an administration that has taken anti-contracting stances in the past lead to another period of belt-tightening in the market. What will the result be this time? Will we see another up-tick in industry consolidation?
In a recent article that my partner, Marc Marlin, authored, he takes a closer look at the situation currently facing government contractors. It appears that more M&A transactions are on the horizon, but things are shifting. Unexpected and previously ignored acquisition targets may emerge. To read Marc’s entire article, click here.