FED GOV CON - Growth Via Acquisition

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FED GOV CON Webinar Wednesdays 2019 Series JSchaus & Assoc. Washington DC +1–202–365–0598


About Our Webinars: - Every Wednesday; - Complimentary; - Recorded; - YouTube & our Website; - No Questions


About Us:

Professional Services for Federal Contractors - GSA Sched; - SBA 8(a); - Proposal Writing; - Pricing; - Contract Administration; - Business Development


Upcoming Events: TUESDAY - April 9 CONFERENCE: Breakfast With The GovPreneur THURSDAY - April 18 CONFERENCE: 29th Annual Procurement Conference TUESDAY - Aug 6 IN-PERSON CLASS: Intro To GSA Schedules


Advertise With Us! We offer newsletter & webinar advertising. CONTACT: Mallory.Flowers@ jenniferschaus.com for more information.


About Our Speaker: Heather Newlin Education: BSEE Purdue University MSEE University of Southern California MBA University of California, Berkeley Company Name: Newport LLC # of Years Federal Gov Con Experience: 20+ Years


GROWTH VIA ACQUISITION


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Purpose: to provide an understanding of the benefits and risks to growing a business through a small business acquisition.


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Benefits Instant Growth

Risks Increased Debt / Lower Working Capital

Entry into New Customers

Operational Distraction

Expanded Technical Offering

Integration Challenges

Back-Office Efficiencies

Inaccurate Assumptions and Projections

M&A Experience

M&A Experience


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Benefit – Instant Growth + Greater Resources  Move to Prime Role +/- Valuation Impacts  Strategic Reasons  Not Revenue Targets - Small Business Status Need to Recertify Status


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Benefits – Expand Customers + More efficient than bidding on contracts  4-7 months to acquire vs 12-18 months to bid + Ability to cross-sell technical offerings  Depends on strong CPARs and customer relationship o Calculate ROI of acquisition versus bidding  Expenses and Time


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Benefits + Expand technical offering  Fill gaps to address Customer’s needs + Back-off efficiencies  Depends on staff reductions o M&A experience  Lessons learned for future sale


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Risks - Increased Debt  Create cash reserves  Demonstrate cash flow - Organizational Distraction  Impact on existing operations  Ability to work strategic projects -


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Risks - Integration Challenges  Impact staff, customers, processes and teaming  Don’t forget current employees and concerns - Accuracy of Assumptions and Projections  Conduct sensitivity analysis on top drivers  Assess impact of owners’ involvement post-sell


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Deciding Whether an Acquisition is Appropriate - Poorly executed acquisition can jeopardize business - Internal assessment: sales and profit - External assessment: value creation - Leadership capacity to manage project - Human instinct – gut reaction


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

SMALL TO LARGE TRANSITION CHALLENGE Select cohort of 15 CEOs work Collaboratively with GovCon Giants Over 6-months to position for the Transition from small business status to full and open competition www.NewportPrograms.com


THANK YOU! JSchaus & Assoc. Washington DC hello@JenniferSchaus.com www.JenniferSchaus.com +1–202–365–0598 Speaker: Heather Newlin Email: Heather.Newlin@NewportBoardGroup.com Phone: 703-468-0845


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