FED GOV CON

Webinar Wednesdays
2019 Series

JSchaus & Assoc.

Washington DC
+1–202–365–0598
About Our Webinars:

- Every Wednesday;
- Complimentary;
- Recorded;
- YouTube & our Website;
- No Questions
 About Us:
Professional Services for
Federal Contractors
- GSA Sched;
- SBA 8(a);
- Proposal Writing;
- Pricing;
- Contract Administration;
- Business Development
 Upcoming Events:

TUESDAY - April 9
CONFERENCE: Breakfast With The
GovPreneur

THURSDAY - April 18
CONFERENCE: 29th Annual
Procurement Conference

TUESDAY - Aug 6
IN-PERSON CLASS: Intro To GSA
Schedules
Advertise With Us!

We offer newsletter &

webinar advertising.
CONTACT:
Mallory.Flowers@
jenniferschaus.com
for more information.
 About Our Speaker:
Heather Newlin
Education:
BSEE Purdue University
MSEE University of Southern California
MBA University of California, Berkeley

Company Name:
Newport LLC

# of Years Federal Gov Con Experience:

20+ Years
GROWTH VIA ACQUISITION
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

Purpose: to provide an understanding of the

benefits and risks to growing a business
through a small business acquisition.
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

Benefits Risks
Instant Growth Increased Debt / Lower Working Capital
Entry into New Customers Operational Distraction
Expanded Technical Offering Integration Challenges
Back-Office Efficiencies Inaccurate Assumptions and Projections
M&A Experience M&A Experience
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

Benefit – Instant Growth

+ Greater Resources
 Move to Prime Role

+/- Valuation Impacts

 Strategic Reasons
 Not Revenue Targets

- Small Business Status

Need to Recertify Status
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

Benefits – Expand Customers

+ More efficient than bidding on contracts
 4-7 months to acquire vs 12-18 months to bid
+ Ability to cross-sell technical offerings
 Depends on strong CPARs and customer relationship
o Calculate ROI of acquisition versus bidding
 Expenses and Time
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

Benefits
+ Expand technical offering
 Fill gaps to address Customer’s needs
+ Back-off efficiencies
 Depends on staff reductions
o M&A experience
 Lessons learned for future sale
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

Risks
- Increased Debt
 Create cash reserves
 Demonstrate cash flow
- Organizational Distraction
 Impact on existing operations
 Ability to work strategic projects
-
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

Risks
- Integration Challenges
 Impact staff, customers, processes and teaming
 Don’t forget current employees and concerns
- Accuracy of Assumptions and Projections
 Conduct sensitivity analysis on top drivers
 Assess impact of owners’ involvement post-sell
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

Deciding Whether an Acquisition is Appropriate

- Poorly executed acquisition can jeopardize business
- Internal assessment: sales and profit
- External assessment: value creation
- Leadership capacity to manage project
- Human instinct – gut reaction
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

SMALL TO LARGE TRANSITION CHALLENGE

Select cohort of 15 CEOs work
Collaboratively with GovCon Giants
Over 6-months to position for the
Transition from small business status to
full and open competition
www.NewportPrograms.com
 THANK YOU!
JSchaus & Assoc.
Washington DC
hello@JenniferSchaus.com
www.JenniferSchaus.com
+1–202–365–0598
Speaker: Heather Newlin

Email: Heather.Newlin@NewportBoardGroup.com

Phone: 703-468-0845