M&A Activities Slowed by Pickier Buyers
Managing Partner Larry Davis was quoted on August 31, 2010 in the Washington Technology article, “M&A Activities Slowed By Pickier Buyers.” There were several transactions that heated up the mergers and acquisitions market during the torrid summer days of 2010.
Larry forecasts strong M&A activity in the federal sector through 2010 and into 2011. He believes “The government contracting industry has been consolidating for a long time. The forces and pressures that are driving consolidation aren’t subsiding.” But those pressures on the federal budget, largely a result of the huge deficit, are forcing contractors to moderate their spending, and that probably will result in fewer M&A deals overall in 2010 than last year, Davis said.“The big difference now is capital is not as readily accessible as it was, and the companies that have capital can be a lot more discerning about the opportunities they pursue,” he added.