federal govt contracting - maximizing the value of your govcon business
TRANSCRIPT
Maximizing the Value of Your GovCon BusinessUS Federal Government Contracting
Webinar Series - 2016
Presented By:Aileen Pisciotta and Dan Doran
JUNE 1, 2016
CALENDAR OF EVENTS:(All Webinars are at 12pm EST & Recorded)
JUNE 1 - Maximizing The Value of Your GovCon Business https://attendee.gotowebinar.com/register/74156936435694851
JUNE 2 - Capture Planning - To Bid Or Not To Bid https://attendee.gotowebinar.com/register/7051206926535220483
JUNE 3 - Teaming Agreements - The Good, The Bad & The Enforceable https://attendee.gotowebinar.com/register/7352313683359938307
JUNE 6 - Teaming With Tribally Owned 8(a) Businesseshttps://attendee.gotowebinar.com/register/4324839202604449539
JUNE 7 - Color Reviews For Successful Proposals https://attendee.gotowebinar.com/register/3973323136181419267
JUNE 8 - Preparing The FSO for a DSS Audit https://attendee.gotowebinar.com/register/423786240906737667
JUNE 9 - Life After 8(a) - Best Practices & Case Study https://attendee.gotowebinar.com/register/6473232146721067779
JUNE 10 - The Politics Of Procurement https://attendee.gotowebinar.com/register/3924758807094447107
JUNE 13 - Contract Administration - Best Practices https://attendee.gotowebinar.com/register/2132047978959217667
JUNE 14 - So You Have A Facility Clearance, Now What? https://attendee.gotowebinar.com/register/9028972158695833091
JUNE 15 - Unsolicited Proposals - Why, What & How.https://attendee.gotowebinar.com/register/4729436391901262849
JUNE 17 - SBIR's - The Good, The Bad & The "How"https://attendee.gotowebinar.com/register/6337198369128857857
2016 US Federal Government Contracting Webinar Series
AGENDA
2016 US Federal Government Contracting Webinar Series
AGENDA:
• Introduction – HOST
• Introduction - GUEST
• Presentation
• Conclusions
• Q & A
2016 US Federal Government Contracting Webinar Series
INTRODUCTIONHost
2016 US Federal Government Contracting Webinar Series
Jennifer SchausAbout The Host
2016 US Federal Government Contracting Webinar Series
* Approx 20 Yrs in Gov Contracting
* Career: D&B (Govt Division)
Federal Sales & GSA Scheds
* Frequent Speaker: Chambers, NCMA, AFCEA, etc
* Member: WIPG
* Education: Towson University – B.A.
UC Berkeley - Leadership Accelerator
Cornell University - Exec Leadership
Jennifer SchausJennifer Schaus & Associates
2016 US Federal Government Contracting Webinar Series
* DC Based Consulting Firm* Over 10 Yrs in Business* Support Services for Gov Cons
Proposal Writing / Contract Vehicles (GSA)
Sales & Biz Dev
Certifications – SBA 8(a); SDVO; etc.
Events
INTRODUCTIONGuests
2016 US Federal Government Contracting Webinar Series
YOUR LOGO HERE
Dan DoranABOUT OUR SPEAKER
2016 US Federal Government Contracting Webinar Series
• Valuation expert …. with a background in “real world” M&A
• Focused on value acceleration, exit planning
• Frequently published (Crain’s, Virginia Business, American Banker, etc)
• Education: West Point
Aileen PisciottaABOUT OUR SPEAKER
2016 US Federal Government Contracting Webinar Series
YOUR PHOTO HERE
• Current: Senior corporate commercial and govcon lawyer; acts as outside general counsel to small business.
• Prior: Large law firm partner, FCC Division Chief, General Counsel to international telecom company.
• Other: Member, AFCEA, Board Member, Telecom Hub
• Education: BA & MA, Univ. of Pennsylvania JD, Georgetown University Law
Dan DoranQuantive Business Valuations, LLC
2016 US Federal Government Contracting Webinar Series
• Specialists: We work exclusively in valuation matters
• Valuation work for exit planning, acquisition analysis, stock options (409a), litigation support, estate and gift tax
Aileen PisciottaExecutive Counsel, PLC
2016 US Federal Government Contracting Webinar Series
YOUR LOGO HERE
Executive Counsel, PLC is a unique Virginia-based law firm comprised exclusively of senior attorneys who are former in-house counsels and provide high-level outsourced general counsel services from the corporate perspective, without expensive overhead and on an as-needed basis.
PRESENTATION
2016 US Federal Government Contracting Webinar Series
YOUR LOGO HERE
Maximizing the Value of Your GovCon Business.
2016 US Federal Government Contracting Webinar Series
Maximizing the Value of Your GovCon Business
FINANCIAL CONSIDERATIONS
Key Value Drivers
• Earnings
• Risk
• Growth
2016 US Federal Government Contracting Webinar Series
Multiple Method
• Value = EBITDA x Multiple(Earnings Before Interest Taxes Depreciation & Amortization)
• Simplifying… but the “usual” way to value
Obvious Take Away:
More Earnings = Higher Value
2016 US Federal Government Contracting Webinar Series
Growth
• Companies are priced on past performance…. But purchased for the future
• Higher multiple today really means a “market rate” multiple of future earnings
2016 US Federal Government Contracting Webinar Series
Risk
• Valuation is always a means of pricing risk
• Higher Risk investments demand a higher return on investment
• …. Higher ROI for the purchaser yields a lower purchase price for the seller
2016 US Federal Government Contracting Webinar Series
De-Risking The Company
• Enhance value by eliminating or mitigating risk drivers
• Big areas of concern in GovCon• LPTA (Lowest Price Technically Acceptable)• 8(a) / set aside / small• Thin management• No bid / capture / BD capability• Low margin / low skill work
2016 US Federal Government Contracting Webinar Series
2016 US Federal Government Contracting Webinar SeriesThere’s No Such Thing as Average
A focus on enhancing growth & de-risking helps move you off “average”
2016 US Federal Government Contracting Webinar Series
Maximizing the Value of Your GovCon Business
LEGAL CONSIDERATIONS
Keys to protecting current revenue and future growth prospects through
legal infrastructure
• Controlling current legal risk variables• Contracts• Assets• Corporate control
• Anticipating and mitigating future risk• Rules governing change
2016 US Federal Government Contracting Webinar Series
YOUR LOGO HERE
Identity Crisis • Loss of intellectual property, disclosure
of competitively sensitive information, loss of reputation
• Fixes:• ©, ™, and patents (protect and
avoid infringement)• Strong NDAs, trade secrets• Non-disparagement clauses
2016 US Federal Government Contracting Webinar Series
YOUR LOGO HERE
House of Cards • Alter ego claims, loss of size class or SBA
certification, ostensible subcontractor, fraud/debarment
• Fixes:• Corporate formalities• Avoid interlocking directors• Transparent governance• Strict regulatory compliance• Proper employee classification
2016 US Federal Government Contracting Webinar Series
YOUR LOGO HERE
Back Door Break-Ins • Surprise claims, losses, liabilities, costs;
lost revenues
• Fixes:• Strong contracts (indemnities,
damage and warranty exclusions, liability limits)
• Effective legal recourse• Adequate insurance• Business continuity plans
2016 US Federal Government Contracting Webinar Series
YOUR LOGO HERE
Bad Break-Ups
• Disgruntled personnel, partner fall out, value theft, fuzzy equity, minority claims
• Fixes:• Non-solicitation/non-compete • Controlled equity • Preset valuation formula• Clear rules for divorce (buy-sell)• Litigation preparation (documents
and privilege)
2016 US Federal Government Contracting Webinar Series
YOUR LOGO HERE
Stumbling Blocks
• Transaction impediments
• Fixes:• Limited pre-emption rights• Drag along rights• Contract assignment• Corporate culture
2016 US Federal Government Contracting Webinar Series
YOUR LOGO HERE
CONCLUSIONS
2016 US Federal Government Contracting Webinar Series
YOUR LOGO HERE
CONCLUSIONS• FINANCIAL: De-risk and pushing growth
yields biggest value enhancement • LEGAL: Shoring up your legal
infrastructure is key to enhancing the value of your company by protecting both current revenue and future growth opportunities.
2016 US Federal Government Contracting Webinar Series
YOUR LOGO HERE
Q & A
2016 US Federal Government Contracting Webinar Series
YOUR LOGOHERE
CONTACT DETAILSMs. Jennifer L. Schaus
Washington DC+ 1 - 2 0 2 – 3 6 5 – 0 5 9 8
[email protected] www.JenniferSchaus.com
------------------------------Aileen Pisciotta
Executive Counsel, PLC2 0 2 – 6 6 4 – 0 1 0 1
Dan Doran
Quantive Business Valuations8 8 8 – 8 2 7 – 1 6 2 4
YOUR LOGO HERE
CALENDAR OF EVENTS:(All Webinars are at 12pm EST & Recorded)
JUNE 1 - Maximizing The Value of Your GovCon Business https://attendee.gotowebinar.com/register/74156936435694851
JUNE 2 - Capture Planning - To Bid Or Not To Bid https://attendee.gotowebinar.com/register/7051206926535220483
JUNE 3 - Teaming Agreements - The Good, The Bad & The Enforceable https://attendee.gotowebinar.com/register/7352313683359938307
JUNE 6 - Teaming With Tribally Owned 8(a) Businesseshttps://attendee.gotowebinar.com/register/4324839202604449539
JUNE 7 - Color Reviews For Successful Proposals https://attendee.gotowebinar.com/register/3973323136181419267
JUNE 8 - Preparing The FSO for a DSS Audit https://attendee.gotowebinar.com/register/423786240906737667
JUNE 9 - Life After 8(a) - Best Practices & Case Study https://attendee.gotowebinar.com/register/6473232146721067779
JUNE 10 - The Politics Of Procurement https://attendee.gotowebinar.com/register/3924758807094447107
JUNE 13 - Contract Administration - Best Practices https://attendee.gotowebinar.com/register/2132047978959217667
JUNE 14 - So You Have A Facility Clearance, Now What? https://attendee.gotowebinar.com/register/9028972158695833091
JUNE 15 - Unsolicited Proposals - Why, What & How.https://attendee.gotowebinar.com/register/4729436391901262849
JUNE 17 - SBIR's - The Good, The Bad & The "How"https://attendee.gotowebinar.com/register/6337198369128857857
2016 US Federal Government Contracting Webinar Series