Wells Fargo Capabilities Statement
Financial Services for Defense & Government Contractors
Wells Fargo Understands the Government Contracting Industry The federal government is the largest buyer of goods and services in the world High growth areas within the Government Contracting (“GovCon”) Industry still exist such as Defense, Cyber, Intel, Big Data, C4ISR, Special Ops, Homeland Security, and VA Steady spending continues to support upgrades to aging military assets, infrastructure, readiness, and technology Industry Strengths
The Administration’s FY 2020 budget supports increased spending on national security where the majority of contracting dollars come from The enhanced spending stability improves contract visibility and cash flow predictability, which are attractive to investors and lenders For small government contractors, the government promotes small business awards, particularly to those with contracting preferences (e.g. SDVOSB, women-owned, 8(a), etc.) Industry consolidation creates M&A opportunities for both buyers and sellers
Despite recent federal budget deals, the ongoing existence of continuing resolutions has led to longer term federal budget uncertainties and delayed / prolonged contract awards
As a result of federal budget reductions from 2010 through 2014, an over-supply of government Industry Challenges
contractors exists, which has led to increased competition and margin pressure and has reinforced the government’s focus on awarding many contracts on a lowest price, technically acceptable basis
The Administration’s proposed budgets creates uncertainty for some civilian agencies The competition for contracts has led to constant award protests by the losing bidders Mid-tier government contractors continue to experience pressure from above and below Competition for top talent continues 4
Wells Fargo Supports the GovCon Industry in Many Ways Investment Banking
M&A, Strategic, and Restructure Advisory Services Alternative Debt and Syndicated Debt Arrangements, Equity Placements, Equity Research
Financing
Corporate revolvers – both public and private companies ABL Lending to fund contract growth and related billed and unbilled receivables Supply chain / inventory financing for government contractors selling products to the government Term debt for capital transactions such as acquisitions, MBO’s, ESOPs, dividends Equipment financing / leasing Term debt for fixed and real asset purchases Placement of institutional debt for leveraged capital transactions
Treasury Management
Deposit & first-in-class Treasury Services Corporate Credit Cards, Merchant Services Corporate Investment Management and Trust Services International Banking Services Hedging for interest rate exposures, foreign exchange exposures
Workforce Solutions
Private Banking and Personal Financial Advisory Services Investment Management Services
Wells Fargo’s Bankers have been working with government contractors for more than 30 years and are dedicated to the industry. We have a deep understanding of the government contracting industry and business. We take the time to stay educated on industry trends and are involved in industry organizations to ensure we remain aware of our customers’ challenges.
Experienced Bankers
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Sample GovCon Clients
Client Profile
Our clients typically provide goods and/or services directly (Prime Contractors) or indirectly (Sub-toPrime) to the federal government. Our clients provide acquisition & project management, aerospace products & services, base operations, communications, cybersecurity, data analytics, engineering, healthcare, health IT, information technology, intelligence, linguistics, logistics, military equipment and parts, SETA, security, scientific, technology, and UAV products and services to the federal government Our clients include large corporate, middle market, and small business government contractors located throughout the US
Investment Banking
Financing / Financial Services
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For more information, contact Wells Fargo Government Services Group Eric Pietras (571) 341-3011 eric.pietras@wellsfargo.com Aerospace & Defense Investment Banking Paul Croci (212) 214-8213 paul.croci@wellsfargo.com
Corporate Banking Brian Oosterman (704) 410-1893 Brian.oosterman@wellsfargo.com
Middle Market Investment Banking Lowell Jacobson (301) 280-5816 lowell.jacobson@wellsfargo.com
Commercial Banking Barbara Angel (703) 760-6369 Barbara.angel@wellsfargo.com
Personal Wealth Advisors Jamie Waldren (410) 715-5026 jamie.waldren@wellsfargo.com
Commercial Banking Carol Seitz (571) 730-0994 Carol.seitz@wellsfargo.com
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