Despite the challenges facing the global economy and the uncertainty facing National Capital region businesses across industries, Dexis Consulting Group, a DC-based consultancy that supports the U.S. government’s national security and diplomatic priorities abroad, has completed not one, but two acquisitions since the beginning of the year.
What’s more, the company is gearing up to make a third in the near future.
In order to help us understand how Dexis has put itself in such a position of strength and why these opportunities are important tools in implementing its strategic plan, we spoke with the company’s founder and CEO, Mihir Desai.
Here is what he had to say:
Corporate Growth….Capital Style (CGCS): Tell us about yourself to start. What services does Dexis offer and what types of organizations make up your client base?
Mihir Desai: We are a professional services firm that supports the mission of U.S. government agencies advancing national security through civilian and diplomatic global engagement. Such engagements involve strengthening partner nations on health, justice, local governance, and so on. Our main clients include the Departments of State and Defense, USAID, and the Centers for Disease Control.
We focus on managing programs for delivery and accountability. For example, our professionals measure the effectiveness of U.S. support to partner-nations in support of health objectives in over 80 locations worldwide. In another example, we provide technical assistance to organizations advancing a free and open society in Ethiopia, a U.S. partner for the last 100 years and an important stabilizer in the Horn of Africa.
CGCS: This year, your company has already made two acquisitions: Checchi and Company Consulting and New Century US, and you’re looking to make a third. Why is this a good time to initiate mergers and acquisitions? Is there something about your particular industry that makes this the case?
Mihir Desai: We bought Checchi because it supports U.S. programs that strengthen overseas judiciaries, a key component of U.S global security strengthening. We bought New Century because it supports U.S. programs that strengthen overseas law enforcement, another important component.
Our next acquisition should be a health-focused services company. We have completed over a hundred million dollars of work on global health in the last few years and had already expanded into domestic health agencies such as FDA and HRSA through partnerships.
We believed early on that the silos of global health and domestic health are artificial, and the current pandemic further confirmed our views. Dexis has successfully grown organically in the health space over the last four years, and the time is right for us to accelerate that growth through further acquisitions.
CGCS: How do these firms further Dexis’s strategic plan and orient you towards future success? Was this a particularly good time to buy these specific companies?
Mihir Desai: Our strategic plan lays out the pathway to implementing our vision of being a thought leader and high-end provider of professional services in global security and stabilization. The two acquisitions we made this year were initiated pre-pandemic. They are already delivering significant value and we are confident that will continue over the extended term.
We have been planning for additional acquisitions for some time and have the resources necessary to continue, so we see no reason to change course.
CGCS: Especially amidst economic uncertainty, how did you prepare and set your company up to make these acquisitions?
Mihir Desai: We are fiscally conservative and have a strong balance sheet. We use corporate resources as a primary means to acquire.
CGCS: Tell us about what type of company you are looking for in what would be your third acquisition of the year. What capabilities or core competencies are you looking to get out of it?
Mihir Desai: We are looking for a small to mid-sized firm that provides program support to HHS agencies such as NIH, CDC, SAMSHA, or CMS. The firm will have direct customer access through prime contract vehicles and hold mostly full and open work. We are guided by the term ‘values-over-valuation,’ which means we are looking for shared values as evidenced through engaged employees and loyal customers.
To learn more about this Dexis and their services, click HERE.