Greg Nossaman, Senior Managing Director of The McLean Group, says, “We’re seeing deal activity accelerate if anything. We’re arguably at a 10-year-high, in terms of deal volume, in terms of valuations.” The aerospace and defense sector had $98.5 billion in total disclosed deal value for 2019 with 80 deals, according to Mergermarket data. This is up 133% from 2018 when disclosed deal value totaled $42.2 billion with 71 deals. Five of the deals in 2019 totaled over $1 billion, compared with three in 2018. […]
US-based aerospace company Shimtech Industries has announced the acquisition of California-based Fastener Technology Corp. (FTC), a specialty fasteners supplier for commercial and military aerospace applications, the company said. The sellers were advised by The McLean Group, a boutique investment bank with a leading aerospace, defense and government practice. […]
Describe a recent accomplishment. “My most important dealmaking accomplishment was the successful close of two Planet Fitness deals. The first, a very competitive deal, partnered Core Fitness with private equity group Spanos Barber Jesse (SBJ). Across all deal parameters, but especially culture and vision, the partnership was ideal.” […]
Forbes recently published the article “Investors Flocking To Government Tech Plays”. The McLean Group’s Senior Managing Director Greg Woodford is quoted extensively throughout the article. He discusses deal activity in 2019 and private equity involvement in the government contracting space now and moving forward. […]
KiwiMex Holdings, an Area Developer of 17 Planet Fitness clubs in Rhode Island and Massachusetts, has been acquired by CDM Fitness Holdings, a portfolio company of Spanos Barber Jesse & Co. The McLean Group’s Meg Montague and Burt Yarkin of its franchising practice served as the exclusive advisor to KiwiMex Holdings.[…]
JACS Development, an operator of eight Planet Fitness clubs in southeast Michigan since 2008 under an Area Development Agreement (ADA), has been recapitalized by Impact Fitness, a portfolio company of Morgan Stanley Capital Partners. The McLean Group’s Meg Montague and Burt Yarkin of its franchising practice served as the exclusive advisor to JACS. […]
The McLean Group announced that it advised Elkridge-based First Source Electronics (FSE), a specialized provider of electronics manufacturing services (EMS) for military, industrial and transportation applications, on its sale to Commercial Vehicle Group (CVG), a supplier of electrical wire harnesses, seating systems and related products for the global commercial vehicle markets […]
August 11, 2019. smartsheet. You may know that mergers and acquisitions have the ability to fast-track your company’s growth, but also that most deals fail. Defy the odds with this complete guide to M&A strategy, in which veteran dealmakers show you how to spot and execute a winning transaction. […]
Spanos Barber Jesse & Co said June 27 that it acquired CDM Fitness Holdings. Financial terms weren’t announced. CDM’s co-founders, including CEO Brian Kablick, Bill Whelan (COO), Jonathan Epstein (CMO), as well as its CFO Eric Peabody, also invested. CDM Fitness is a Planet Fitness franchisee in Massachusetts. […]
Trowbridge and Trowbridge announced on Monday that Enlightenment Capital completed the financial purchase of the company to fuel their continued growth and expansion. The McLean Group, a leading investment bank specializing in M&A advisory services, advised Trowbridge & Trowbridge on its sale to Enlightenment Capital.
Government market investment firm Enlightenment Capital said Monday it has acquired federal IT contractor Trowbridge & Trowbridge to add another platform into the portfolio. Trowbridge & Trowbridge’s services to federal agencies include cloud engineering, cybersecurity, IT engineering, application development and network engineering — all areas that touch on technology modernization.
The McLean Group, an employee-owned investment bank that provides objective strategic and financial advice on mergers and acquisitions and business valuations, announced today that industry veteran Paul S. Klick IV has joined the firm as a Senior Managing Director. Klick, who will be based in the firm’s McLean offices, will help serve clients in the technology, media and telecom sectors.
Systems integrator By Light Professional IT Services said Monday it has acquired government technology services contractor Phacil to add more cybersecurity and managed services offerings for federal agencies. Terms of the transaction were undisclosed. This is Arlington, Virginia-based By Light’s second acquisition since the company was acquired itself by private equity firm Sagewind Capital two years ago. […]
By Light Professional IT Services last week acquired Phacil Inc. in a deal that expands its offerings to the federal government. By Light, which is based in Northern Virginia, provides program management, systems design and engineering, satellite communications, information assurance, rapid prototyping, federal healthcare and other services for classified and unclassified government networks. […]
March 25, 2019 – Washington Technology published an article titled “Who made the biggest deals of 2018?” This article included contributions from The McLean Group’s, Greg Woodford. “After going through a relative lull for a couple years, the government market is coming off its second straight year of strong mergers and acquisitions with private equity firms leading the way with some of the most significant deals.” […]
March 10, 2019 – Washington Technology published an article titled “Parsons reportedly kicking IPO tires.” In this article, The McLean Group’s, Greg Woodford was quoted as saying “An IPO adds additional complexity since executives have restrictions on when they can sell their stock, and also have to worry about market risk and fluctuations.” […]
January 11, 2019 – Washington Business Journal published an article titled “The shutdown: Local businesses share their stories.” In this article, The McLean Group’s, Cameron Hamilton was quoted as saying “From the perspective of an M&A adviser, the largest effect remain unseen as of this writing. Both private and public capital have always viewed the government […]
Washington Technology recently just published an article on M&A in government contracting titled “How will GovCon M&A play out in 2019?” This article features several quotes from The McLean Group’s Senior Managing Director Greg Woodford. Woodford is optimistic about GovCon M&A in 2019 but offers one important caution.
Sunshine Fitness Growth Holdings, an operator of Planet Fitness clubs in the American Southeast, announced on May 31 it acquired two franchise groups representing 31 clubs in Florida, North Carolina and South Carolina. Sunshine Fitness now operates 64 clubs across the region. The McLean Group was financial advisor for the acquisition.
L3 Technologies (NYSE: LLL) acquired Applied Defense Solutions, a Maryland-based aerospace engineering, software development and space tech company, for about $50 million. Applied Defense Solutions will be renamed L3 ADS and will add $15 million to L3’s top line for this year and approximately $50 million in 2019. The McLean Group advised ADS.
CACI and GD are in bidding war for CSRA, the resulting entity of which would be worth almost $10 billion. The McLean Group’s Greg Woodford states, “This is yet another data point that confirms a new wave of consolidation. It shows the impact of a growing defense budget and the opportunities that the tier-one contractors are seeing after years of stagnation, challenges with LPTA, and budget uncertainty.”
The analysis of M&A in the government market invariably focuses on the buyer or the combined company in deals of equals. However, some answers on how sellers should approach the M&A market came Tuesday from a panel hosted by GMU’s School of Business of former government contracting CEOs and industry experts including The McLean Group’s Andy Smith. One main take away: The process must start years in advance.
Federal procurement spending is up. The number of mergers and acquisitions are skyrocketing. And overall, despite worries about the transition to a new administration, the continued inability of Congress to pass appropriations bills on time and what, many said, was an unfriendly environment for federal contractors, fiscal 2016 was a pretty darn good year for vendors.
A middle market national investment bank out of Virginia has created a new real estate practice group that will be run by the former principal of a self-storage company. In his new role with The McLean Group, Weber will lead the firm’s efforts in raising equity capital for individual real estate projects and real estate enterprises, including those within the sector of self-storage.
Former Massachusetts Governor, Deval Patrick, is the managing director and head of Bain Capital Double Impact which raised $390 million to invest in companies that provide a social benefit and financial returns. One of the fund’s first investments includes Impact Fitness, Planet Fitness franchisees that promote healthy lifestyles in underserved communities.
The Small and Emerging Contractors Advisory Forum, better known as SECAF, named the winners of its Ninth Annual Government Contractor Awards on May 9. More than 500 people attended the flagship event, which honors small and emerging government contractors and the players in the industry who rely on small businesses. The McLean Group’s principal and SECAF’s chairman of the board, Cameron Hamilton emceed the event.
In 2016, despite the uncertainty of an election year and a relatively flat federal budget, the market still experienced a strong level of deal-making with 70 closed transactions. Among those deals, 10 stood out from the rest with three being tapped as best deals of the year by a panel of M&A experts including The McLean Group. These deals represent some of the most important trends driving M&A activity in today’s market.
PE Hub’s Buyouts magazine selects Levine Leichtman’s sale of SH Franchising, LLC (“Senior Helpers”) to Altaris Capital Partners, LLC as the Deal of the Year, Small Market. The McLean Group’s franchising practice served as co-financial advisor to Senior Helpers. The McLean Group also advised Senior Helpers in its 2012 sale to Levine Leichtman.
PSC Industrial Outsourcing, LP (PSC), a firm providing industrial cleaning and environmentally sensitive services to America’s energy infrastructure, announced the acquisition of Redwood City, CA-located Seaport Environmental, a fully permitted Class I non-hazardous wastewater treatment and disposal facility.
“Nearly 9,000 successful companies across the United States are substantially or entirely owned by their employees,” Phacil Executive Chairman and CEO Tom Shoemaker said. “The ESOP success formula is simple: Employee-owners make great employees. Employee-owners know that their efforts can help them gain a benefit that is greater than just their salary.”
Business aviation may be poised for consolidation, and the most likely property to exchange hands will be Bombardier’s Learjet business. Textron is rumored to emerge as the new owner. The McLean Group’s John Stack comments that a strategic buyer (presumably Textron) would likely stop manufacturing and focus on the installed base of some 2,200 Learjet 70/75 aircraft in service worldwide.
Booz Allen Hamilton’s recently boosted credit ratings outlook is partially a result of The Carlyle Group’s reduced equity stake in the company. The McLean Group’s Mitch Martin comments on private equity groups’ influence on portfolio companies’ financial performances through the distribution of dividends.
A newly-formed affiliate of Argonne Capital Group, National Fitness Partners, recapitalized a 10-unit Planet Fitness (NYSE: PLNT) franchisee in Pennsylvania. National Fitness Partners took a majority stake in the franchisee and plans to acquire other Planet Fitness franchisees and develop new units. The McLean Group advised selling shareholders.
Defense contracting, once a reliable mainstay of Virginia’s economy, has been hit hard by sequestration and the federal government’s emphasis on austerity. The McLean Group’s Cameron Hamilton notes the challenges of doing business in the industry specifically for small and midsize defense contractors.
Indus will be folded into Tetra Tech’s water, environment and infrastructure (WEI) division, which comprised 40.8 percent of the company’s $2.3 billion in 2015 sales. The WEI business unit performs several monitoring, data management, planning and surface and groundwater modeling services for the U.S. Environmental Protection Agency, the U.S. Army Corps of Engineers, and a number of local and city governments.
ESOP activity has increased in the government services market as of late. For company owners looking to sell their business, an ESOP is a less-common alternative to an outright sale or merger. Low interest rates and tax exemptions make ESOPs attractive M&A alternatives in addition to the lack of integration risk that’s sometimes associated with M&A.
Linxx Global Solutions’ founder, Frank Cucci, exited the company through an employee stock ownership plan—an alternative transaction structure that enables him to protect the culture of the company that employs 430 full-time and part-time professionals, most of whom hold active security clearances. Linxx’s advisor The McLean Group released a statement identifying several trends in today’s […]
Novetta Solutions, the fast growing intelligence company owned by Arlington Capital Partners, has made its second acquisition in less than a month by acquiring digital signal processing and intelligence analysis firm, SigInt Technologies. SigInt will be integrated into Novetta’s Cyber SIGINT and Discovery Division, based in Columbia, MD. The McLean Group served as SigInt’s M&A […]
With NetCentrics’ addition, Edgewater Funds’ Haystax expects to have about $105 million in sales this year and between $300 million and $500 million in sales within the next five years. Haystax’ largest customer is the Defense Department and also includes the Intelligence Community, state agencies, and state and local public safety agencies. The McLean Group […]
WashingtonExec interviews The McLean Group’s Cameron Hamilton, Goodman & Co. LLP’s Scott Brezler, and John Marshall Bank’s Mark Moore on The Small and Emerging Contractors Advisory Forum (SECAF) and its 6th Annual Government Contractor Awards Gala which takes place on May 1 at the Hilton McLean Tysons Corner
Britain’s Ultra Electronics Holdings plc said Feb. 19 that it has acquired 3 Phoenix Inc. (3Pi) for $70 million in cash, expanding its presence in the United States and in tactical and sonar systems. Terms of the deal include up to $17 million in additional payments by Ultra based on 3Pi’s earnings growth during the […]
In its new report, The McLean Group, a mergers and acquisition adviser, tracked 129 M&A deals in the defense and government services space during 2013 compared to 219 in 2012, 182 in 2011, and 204 in 2010. 2013 activity by those that make up the firm’s defense prime index was down 63 percent compared to […]
The electronics-supply chain is the foundation of the technology industry, and while many of these deals do not receive a great deal of attention, there is a lot of M&A action here. In the last 12 months, there were nearly 600 announced acquisitions of enterprise software companies, according to Capital IQ. There were also almost […]
Principal Mitch Martin authors a Washington Business Journal Expert Insight article on the reasons why acquisitions under $10 million do not make sense for many buyers but for a select few, they do. He writes that breaking down these deals to decide whether they’ll pay off in the long run is often the biggest challenge.
McLean Group bulked up its aerospace, defense, and government services team last week. Greg Nossaman and Greg Woodford came over from BB&T Capital Markets | Windsor Group where they worked on M&As, recaps, management buyouts, and capital formation. The rest of the team is made up of Cameron Hamilton, Joe Golden, and Mitch Martin.
Harry Ward discusses buyers’ and sellers’ contrasting perspectives of deal risk. Risk management is a critical skill in the asset-heavy marine industry, and numerous players are perpetually evaluating their exposure level and modifying their risk exposure. Mergers and Acquisitions are an excellent window into the financial risk landscape of the industry.
On November 13, 2012, TWD & Associates (TWD) announced its acquisition of the Engle Group, a provider of IT services, solutions and support to the federal government. The Engle Group brings TWD such customers as the Agriculture, Justice and Interior departments, the Air Force and the National Credit Union Administration.
Stanley’s former chief executive Philip Nolan has founded the Galeos Group, a $300 million private equity-backed government services company with three other industry veterans. Mitchell Martin, a principal at The McLean Group, says despite government spending uncertainty, private equity remains active though very cautious.
Special guest, Brent Lorenz of the McLean Group, LLC, discusses entrepreneurship and M&A in the technology sector on Federal News Radio’s Blueprint for Wealth. The program provides timely and valuable estate, tax and business planning techniques and developments and features dynamic special guest interviews.
The Defense Contract Audit Agency (DCAA) is behind on auditing the books for many government contractors – often by four or five years. This coupled with the existing environment of budget austerity and extreme pricing pressures on defense firms, is in some cases creating serious issues when government contractors seek to sell their companies.
Two critical factors are driving change across all segments of the maritime business today: new regulations and environmental issues. Costly and complex new requirements will shape the course of mergers and acquisitions activity as some companies struggle and others act to capitalize on the challenges posed by rapid change.
For contractors that specialize in manning and supporting government operations — commonly referred to as the services industry — the decade following the terrorist attacks of Sept. 11, 2001, was one of spectacular growth. However, many businesses in the sector are now finding themselves at an inflection point, revamping to win work in a competitive […]
Fulcrum IT has acquired the Corbin Company, a provider of technology engineering services, including cyber security and sensor technology support. Acquiring Corbin, advised by The McLean Group, allows Fulcrum IT to support Corbin’s prime position on the Warrior Enabling Broad Sensor Services (WEBS) for the NVESD contract, an indefinite delivery/indefinite quantity contract vehicle worth $1.8 […]
Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based private equity firm, announced today that it has partnered with management to complete their investment in Timonium, MD-based SH Franchising, LLC, (“Senior Helpers”). Founded in 2002, Senior Helpers is a leading franchisor of private pay, professional in-home care for elderly individuals.
Some firms offer senior financing. Levine Leichtman Capital Partners is offering financing for seniors. Michael Wursthorn reports that the Beverly Hills, Calif., firm has acquired SH Franchising, also known as Senior Helpers, which provides personal care, companion care and customized disease care for patients with Alzheimer’s and other types of dementia.
It is unclear exactly how budget pressures, sequestration risk and the expected increase in capital gains taxes will impact transaction activity for the remainder of 2012. In light of these uncertainties, here are 10 trends The McLean Group is currently watching in the defense and government services M&A market.
Fulcrum IT has acquired the Corbin Co. to expand its information technology offerings in health care and human resource services. Terms of the deal were not disclosed but Fulcrum is adding capabilities in areas such as specialized change management, quality assurance and strategic planning, the company said.
Fourth, the global SaaS provider of labor, payroll, inventory and procurement systems for the restaurant/bar, hotel, contract catering and leisure markets, has announced the acquisition of Adaco Inc., supplier of SaaS based purchasing and inventory control solutions to the hotel sector in the US and throughout the world.
Fourth, a premier provider of completely integrated cloud-based solutions for the hospitality industry, has successfully acquired Adaco Inc. a major supplier of SaaS based purchasing and inventory control solutions to the hotel sector in the US and other countries. With this acquisition, Adaco will continue to operate from its Connecticut base in the US and […]
SAIC plans to acquire MaxIT Healthcare Holdings which it will combine with Vitalize Consulting Solutions, its newly-bought healthcare IT company. President Obama’s healthcare law, aging baby-boomers, and a downturn in military spending are spurring similar transactions among contactors intent on positioning themselves to win state, federal and commercial health-IT work.
The company, which provides its SaaS Revenue & Yield Management solutions to more than 1,200 hotels around the world, will now be integrated into Infor10 Hospitality, which similarly provides revenue management functionality to the hotel industry. The financial terms of the deal were not disclosed. The McLean Group was EasyRMS’ M&A advisor on this deal.
Infor, a leading provider of business application software serving more than 70,000 customers, today announced the acquisition of EasyRMS, a leading provider of multitenant SaaS revenue management software for the hospitality industry. Based in London, EasyRMS expands the Infor10 hospitality offering to provide industry-leading revenue management functionality, enabling hotels to optimize the pricing offered on […]
John Stack, Managing Director and leader of The McLean Group’s aerospace M&A practice speaks to aerospace & defense’s impact on the industrials market, stating, “While the industry remains cyclical, current commercial backlog visibility is providing opportunities to exit businesses, secure resources required to meet higher planned rates and create/expand platforms. Interest in acquiring well-positioned aerospace […]
McLean Group Principal, Cameron Hamilton discusses why LLR Partners’ acquisition of a majority of Paragon Technology Group’s assets constituted a unique transaction in which multiple parties (founders, investment bank, new CEO and a private equity buyer) with varying agendas effectively worked together in the best interests of all parties.
Given the 2008 financial meltdown and the earlier enactment of the Sarbanes-Oxley Act of 2002 (SOX), there is a growing demand for fairness opinions in the middle market. Effectively using fairness opinions created by outside advisors allows board members to demonstrate their careful consideration of different shareholders’ opposing interests when evaluating acquisition and divestiture opportunities.
According to Washington Technology, The McLean Group played part in seven of the 82 most significant government contracting deals closed in 2011—more than any other investment bank. Of those transactions, National Security Partners’ (a FedCap Partners, LLC holding company) acquisition of Point One was selected “Best Small Business Deal.”
Proactive buyers can take control of the transaction process by creating a private auction from the information provided in an Acquisition Options Matrix which helps Boards and acquisition teams properly price and locate key strategic acquisition candidates in terms of size, fit and interest in being acquired.
Such Chicago-area leaders as State Senator Kwame Raoul, staff of Children’s Memorial Hospital, and local representatives of Anderson Mikos Architects, Power Construction and International Child Care, including McLean Group’s Chuck Andrews, are eager to raise $35 million in cash to erect a new, world-class children’s hospital in Port Au Prince by the end of 2013. […]
Doctors, builders, architects and relief workers, including Mclean Group Managing Director and senior member of the firm’s healthcare practice, Chuck Andrews, gathered at Children’s Memorial Hospital to discuss efforts to build a new children’s hospital in Haiti. Chuck Andrews, a representative of International Child Care USA, calls the aftermath of the earthquake “both a devastating […]
Scott Friedlander was recently tapped to run Paragon after LLR Partners’ recent purchase of the Vienna, Va.-based biz intel and enterprise integration solutions provider. Investment bank The McLean Group helped Paragon founders sort through offers from strategic acquirers and private equity groups. The firm says the deal is its aerospace, defense & government practice’s first […]
TravelClick has announced its acquisition of EZYield. EZYield’s integrated solutions suite will continue to be offered as standalone solutions and, over time, will also be integrated into TravelClick’s iHotelier central reservation systems, as well as other property management systems (PMS) and central reservations systems (CRM).
Small government contractors are being bought at the fastest pace in at least a decade as buyers target vendors holding so-called “multiple-award” contracts that can provide years of federal dollars. General Dynamics Corp. and GTSI Corp. are among the companies that have been most active making acquisitions in expanding or stable contracting sectors such as […]
For defense dealmakers, one of the best training grounds is the end market in which many of them once actively served: the U.S. armed forces. Military service may provide many disciplines, not to say skills, particularly with advanced electronic equipment and weapons systems, but it also provides a potentially rich network of friends and relationships. […]
Large contractors are buying up small ones that hold prime spots in the $12 billion Encore II program as they attempt to gain access to the Defense Information Systems Agency, which many believe will be the driving force behind some of the biggest technology initiatives at the Department of Defense.
General Dynamics Corp. has acquired Network Connectivity Solutions Corp., a provider of enterprise services and cloud computing to the Defense Department. The value of the cash transaction was not disclosed in the announcement dated July 18, but the deal brings GD access to the Defense Information Systems Agency’s Encore II vehicle.
Boeing (NYSE: BA) today announced an agreement to acquire Solutions Made Simple Inc. (SMSi), an Information services provider for the U.S. government and the Intelligence Community. Known for its Twister data integration framework products, SMSi’s technology allows users to easily extract, share and query information stored in an unlimited number of data sources and applications.
The McLean Group announced the closing of two deals this week repping professional services firm OAK Management in its sale to engineering and IT services firm Electronic Consulting Services Inc. and shepherding Falls Church-based JB&A through its purchase of McLean-based MCR. Mum’s the word on how much the deals were worth.
MCR, LLC, a premier provider of integrated program management services to the federal government, announced today that it has acquired JB&A, INC., a company that provides strategic planning, programming and budgeting, manpower analytical support and other professional services to U.S. government agencies. This deal expands MCR’s footprint within Intelligence Community
OAK Management, Inc., a professional services company focusing on providing specialized consulting to the Navy and National Oceanographic and Atmospheric Administration merged with Electronic Consulting Services, Inc. (ECS). ECS is a growing, mid-sized provider of professional engineering and information technology services to the public sector. The McLean Group was the sole mergers and acquisitions advisor […]
Recent surveys indicate many business owners don’t have a clear understanding of how to value intangible property, so it’s important that valuators educate the owners they work with. The three ways of assessing the value of intangible property are the cost approach, the market approach, and the income approach.
Providence Equity Partners LLC’s acquisition of SRA International Inc. is just one of many recent government contracting acquisitions by private equity firms. While private equity firms typically buy low hoping to sell high a few years later, their acquisitions of federal contractors appear to be more strategic.
Yesterday, we were at Nats Stadium to catch the pre-game show— Valiant’s executive development speaker series—and ran into this starting lineup from The McLean Group. Managing director Greg Boucher and principals Cameron Hamilton and Mitchell Martin are busier than ever putting together M&A transactions for cyber security, intelligence, and health care IT companies.
By the end of 2010, M&A activity in the defense and government services sector had risen to a level not seen since the 2006-2007 peak. Increasing M&A activity always drives demand for business valuation practitioners as both buyers and sellers require valuation professionals to perform such services as transaction fairness opinions, purchase price allocations, goodwill […]
Some US companies operating in South Africa may be open to restructuring pitches in the wake of operating challenges and other emerging market opportunities. “However, uncertainties around labour and black economic empowerment (BEE) are among the factors that may shape the investment decisions of US companies in Africa’s biggest economy in future,” sources have said.
Down round financing is a round of financing where investors purchase stock from a company at a lower price than prior investors paid. The devaluation of the company stock is necessary to attract funding to continue operations, but results in the dilution of ownership for existing owners. Therefore, it’s essential that board members understand the […]