The McLean Group Advises GCS on its Acquisition by Preferred Systems Solutions

MCLEAN, VA – December 11, 2014 – The McLean Group is pleased to announce the acquisition of Government Contract Solutions Inc (GCS) by Preferred Systems Solutions (PSS), a portfolio company of CM Equity Partners. The McLean Group’s Aerospace, Defense & Government Services (ADG) practice served as the exclusive mergers and acquisitions (M&A) advisor to GCS.

GCS supports high priority programs for customers at the forefront of federal spending initiatives and has an established growing presence with the Intelligence Community and Department of Homeland Security. The acquisition of GCS strengthens PSS’ position as a contractor of choice within the Intelligence Community, Defense, and Civilian Federal markets.

“PSS is committed to providing world class support to the men and women charged with upholding our national security in their important mission to defend our country and preserve our democracy at home and abroad. The acquisition of GCS, with an 18 year successful track record of outstanding customer support within the Intelligence and Civilian Federal communities, expands our commitment to those men and women,” said Scott Goss, CEO of PSS.

The Company’s sale highlights several prominent trends in the government services M&A environment, including:

  • Buyers prioritize M&A candidates that possess highly specialized capabilities and customer focus
  • The Intelligence Community and National Security segments remain areas of heightened buyer interest; although it is increasingly important for companies to demonstrate customer access, long-standing relationships, and strong past performance even within priority market segments
  • Prime, full and open contracts with significant remaining periods of performance drive value
  • Private equity groups, both through platform investments and add-on acquisitions, remain extremely active in the government services M&A market. This represents PSS’ third acquisition of 2014, and the fourth transaction closed by The McLean Group’s ADG practice in 2014 involving a private equity sponsor.

ABOUT THE MCLEAN GROUP

The McLean Group is a leading independent investment bank that provides mergers and acquisitions (M&A), debt and equity recapitalizations, business valuation and strategic consulting services to middle market companies. The firm’s Aerospace, Defense & Government Services (ADG) team is one of the largest dedicated groups in the country and has deep transactional expertise in nearly every segment of the government market.

The McLean Group’s ADG practice leaders have advised on more than 150 government sector transactions with cumulative deal value exceeding $4 billion, including 50 transactions closed since 2010. The firm’s transaction advisory and valuation services reflect comprehensive industry knowledge, extensive transactional successes, commitment to providing senior-level attention to every client engagement, and real-time understanding of industry-specific valuation drivers.

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