Look for continued consolidation of 8(a) companies.
March 1, 2022 - For the past six months, we've seen a lot of consolidation in the 8(a) community. For example,
Strategic Innovation Group acquired 3C Services
GCOM acquired ASR Analytics
NowVertical plans to acquire Allegiant Defense
And, we expect the trend to continue throughout 2022. What's driving the continued trend of M&A and consolidation within the industry? There are many reasons, here are a few:
Government continues to streamline acquisition. As government continues to leverage multi-award BPAs and IDIQs, companies are looking to gain eligibility to compete and are considering acquiring a company with these vehicles.
Talent pool is tight. It's extremely difficult to find, attract, and hire exceptional talent in this market. Companies are looking at acquisition as an option to further build out teams (and/or capabilities).
The whole is greater than the sum of the parts. In an extremely competitive environment, companies are looking at acquiring capabilities, past performance, relationships and positioning to enhance their competitive positioning.
We've been extremely active with conversations, both buy-side and sell-side. If this is something that is of interest, feel free to reach out or learn more about our M&A services.