Key Trends in the Valuation of Government Contracting Firms (PDF)

January 2013 978-1-62150-023-0 PDF (42 pages)

BVR (editor)

Business Valuation Resources, LLC

Federal budget battles, unclear tax positions, and domestic and international economic and political trends create a challenging environment for government contracting firms and the business appraisers that value them. Key Trends in the Valuation of Government Contracting Firms: A BVR Special Report discusses the unique characteristics and considerations important to owners and valuation professionals in deriving value estimates for businesses that contract with the federal government.

Highlights include:

  • Top value drivers in the defense and government services markets
  • Special issues to consider when valuing a government contracting firm
  • Necessary considerations for government contractors with set-aside status
  • Customer list and backlog issues as they relate to purchase price allocations
  • Lost profit issues unique to the government contracting industry
  • Government contracting firm acquisition multiples
  • Key sources of government data

Table of Contents

  • Introduction

  • Key Value Drivers in Defense and Government Services Markets
    By Mitch Martin, MBA, MPA
  • Special Issues to Consider When Valuing a Government Contracting Firm 
    By Ron A. Stramberg, ASA
  • Enhanced Market Understanding Needed to Value Government Contractors
    By Bob Kipps
  • Government Contractors with Set-Aside Status Require Risk-Adjusted Timelines 
    By Donald W. Nalley Jr., CPA/CVA, ABV, ASA
  • Contractor Purchase Price Allocation Requires Careful Analysis of Customer List and Backlog 
    By Nathan E. DiNatale, CPA/ABV, CVA
  • Lost Profits Issues Unique to the Government Contracts Industry 
    By Patrick A. McGeehin and Daniel E. Johnson, Esq.
  • Valuation Multiples Based on Pratt's Stats
    By Adam Manson
  • Industry Research Involving Government Contractors Requires Specific Internet Sources