Likely Buyers
- Larger prime contractor
- Wants your contract vehicles, cleared staff and customer relationships.
- Private equity backed platform
- Adds your firm to a group of contractors serving the same agencies.
- Senior executive
- Leaves a corporate job to lead a firm with contracts already in place.
Backlog Is Not All Equal
Buyers sort contracts by how long they run, how much work remains and whether the contract is funded. A firm with several years of funded work is worth far more than one that must win everything again next year.
Prepare a clean schedule showing each contract, the customer, the end date and the options still ahead.
Recompete and Concentration Risk
If one agency or one contract produces most of your sales, buyers apply a discount. A common rule of thumb is a price cut near the share that one customer represents, once it passes about fifteen to twenty percent.
Read how to screen buyers early, since your contract details are sensitive.
Small Business Status
Some contracts were won because your firm qualified as a small business. A larger buyer can change that status. Ask a government contracts attorney how a sale affects each contract before you list.
Clearances and Key People
Facility and personal clearances matter, and cleared staff are scarce. Buyers want to know who holds what, who intends to stay and what the process is if a clearance needs to be moved.
Your firm may also depend on a few program managers. Plan retention terms for them well before closing.
Paperwork a Buyer Will Check
Federal contracts do not move with the business automatically. An asset sale usually needs the government to agree to the change, while a stock sale has different steps. The novation and SAM checklist explains the basics.
What Makes Yours Stand Out
- Several years of funded work still on the schedule
- Customers spread across more than one agency
- Strong past performance records you can share
- Managers who run programs without you
Curious about the range? Request a confidential valuation.