Archive: Government spending

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Lexy Kessler Talks to Federal News Radio About the New Continuing Resolution

Lexy Kessler, lead partner of Aronson’s Government Contract Services Group was interviewed by Federal News Radio regarding the continuing resolution passed last week that will keep the government operating through December 11, 2014. On “In Depth,” host Francis Rose asked Kessler to offer her perspective on what government contractors can do between now and December […]
September 29, 2014

July 2014 M&A Market Update: Q2 Earnings Calls

After fighting off the sequestration woes in late 2013, government contracting firms continue to provide mixed signals. Midyear Q2 earnings released over the past month revealed not a changing Aerospace and Defense landscape, but rather a need for more efficient business models executed by government contractors. While award activity for many has risen off the […]
August 15, 2014

GAO Says U.S. Government is Suspending Risky Contractors More Often

From the Washington Post: For years, watchdog groups have lamented that many government agencies continue to work with contractors that act unethically, commit fraud or perform poorly. But as the U.S. government has tried to crack down on wasteful  the number of companies suspended and prohibited from contracting with federal agencies has grown significantly. And […]
June 6, 2014

Government contractors: Feeling like you’re fighting for decreasing dollars? It’s time to #RethinkEverything to compete

With tightening budgets, increased oversight, and higher costs of doing business, government contractors need to rethink all aspects of their business. Aronson’s new white paper, “<RETHINK> Everything: The New Imperative for Federal Government Contractors,” offers insights for government contractors who want to thrive in this new era: Acquisition trends and strategies for cost containment Revenue diversification and adapting […]
April 14, 2014
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  • Aronson GCSG

January 2014 M&A Market Update: Q-4 Earnings Calls

When we last checked in on our government services indices back in October 2013 following Q3 earnings calls, our contractors were fresh off 16 days of sequestration, the budget debate had been postponed for another few months, and the overarching theme across all calls could be summed up in one word: uncertainty. Though this uncertainty […]
February 14, 2014

Performance Gap Between Tier 1 and Mid-Tiers Widens Following Q3 Earnings

During the last two weeks of October and first two weeks of November, all major Tier 1 and Mid-Tier Defense and Government Services contractors reported calendar Q3 results. This was good news for our Tier 1 index, who all reported Earnings Per Share (“EPS”) ahead of analyst expectations and raised full year 2013 EPS guidance. […]
November 15, 2013
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  • Aronson

Biggest Cuts Still Coming for Contractors

Government contractors of all sizes have certainly felt the impact of reduced spending and sweeping cuts over the last year. However, it is likely that the greatest damage is still to come. DoD spending cuts are expected to increase by 40% in FY2014 as compared to FY2013 ($52B vs. $37B). Additionally, mitigation tools and resources […]
October 16, 2013
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  • Aronson Capital Partners

Strategic Alternatives – Leveraged ESOP Transactions

As M&A valuations have declined for the majority of the Defense and Government Services market over the past five years, the adoption of Employee Stock Ownership Plans (“ESOPs”) is becoming a more viable partial exit strategy. Many business owners who are exploring a near term liquidity event are looking to ESOP transactions if an M&A […]
July 17, 2013
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  • Aronson Capital Partners

Financial Sponsors – Continued Interest in Government Services

Over the last five years, the Government Services industry has seen continuous interest from financial sponsors. Private equity firms have acquired publicly-traded services providers (e.g., Providence/SRA; Ares/GTEC), divestitures of large systems integrators (e.g., Veritas/The SI; General Atlantic & KKR/TASC), and both middle and small market contractors (e.g., Arlington/White Oak Technologies; LLR/Paragon). In 2012, private equity […]
May 16, 2013
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  • Aronson Capital Partners

Perfect Storm: Lawmakers Tighten Belts Amid Automatic Budget Cuts

By 1500AM Federal News Radio WASHINGTON (AP) — Members of Congress are traveling less and worrying more about meeting office salaries. Their aides are contending with long lines to get inside their offices and fewer prospects of a raise. Such are the indignities thrust upon the men and women who brought the country $85 billion […]
April 9, 2013