FEDERAL Govt Contracting - Maximizing The Value of Your GovCon Business

Maximizing the Value of Your GovCon BusinessUS Federal Government Contracting

Webinar Series - 2016

Presented By:Aileen Pisciotta and Dan Doran

JUNE 1, 2016

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CALENDAR OF EVENTS:(All Webinars are at 12pm EST & Recorded)

JUNE 1 - Maximizing The Value of Your GovCon Business https://attendee.gotowebinar.com/register/74156936435694851

JUNE 2 - Capture Planning - To Bid Or Not To Bid https://attendee.gotowebinar.com/register/7051206926535220483

JUNE 3 - Teaming Agreements - The Good, The Bad & The Enforceable https://attendee.gotowebinar.com/register/7352313683359938307

JUNE 6 - Teaming With Tribally Owned 8(a) Businesseshttps://attendee.gotowebinar.com/register/4324839202604449539

JUNE 7 - Color Reviews For Successful Proposals https://attendee.gotowebinar.com/register/3973323136181419267

JUNE 8 - Preparing The FSO for a DSS Audit https://attendee.gotowebinar.com/register/423786240906737667

JUNE 9 - Life After 8(a) - Best Practices & Case Study https://attendee.gotowebinar.com/register/6473232146721067779

JUNE 10 - The Politics Of Procurement https://attendee.gotowebinar.com/register/3924758807094447107

JUNE 13 - Contract Administration - Best Practices https://attendee.gotowebinar.com/register/2132047978959217667

JUNE 14 - So You Have A Facility Clearance, Now What? https://attendee.gotowebinar.com/register/9028972158695833091

JUNE 15 - Unsolicited Proposals - Why, What & How.https://attendee.gotowebinar.com/register/4729436391901262849

JUNE 17 - SBIR's - The Good, The Bad & The "How"https://attendee.gotowebinar.com/register/6337198369128857857

2016 US Federal Government Contracting Webinar Series

https://attendee.gotowebinar.com/register/74156936435694851
















AGENDA







AGENDA:

• Introduction – HOST

• Introduction - GUEST

• Presentation

• Conclusions

• Q & A






INTRODUCTIONHost







Jennifer SchausAbout The Host


* Approx 20 Yrs in Gov Contracting

* Career: D&B (Govt Division)

Federal Sales & GSA Scheds

* Frequent Speaker: Chambers, NCMA, AFCEA, etc

* Member: WIPG

* Education: Towson University – B.A.

UC Berkeley - Leadership Accelerator

Cornell University - Exec Leadership





Jennifer SchausJennifer Schaus & Associates


* DC Based Consulting Firm* Over 10 Yrs in Business* Support Services for Gov Cons

Proposal Writing / Contract Vehicles (GSA)

Sales & Biz Dev

Certifications – SBA 8(a); SDVO; etc.

Events





INTRODUCTIONGuests


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Dan DoranABOUT OUR SPEAKER


• Valuation expert …. with a background in “real world” M&A

• Focused on value acceleration, exit planning

• Frequently published (Crain’s, Virginia Business, American Banker, etc)

• Education: West Point





Aileen PisciottaABOUT OUR SPEAKER


YOUR PHOTO HERE

• Current: Senior corporate commercial and govcon lawyer; acts as outside general counsel to small business.

• Prior: Large law firm partner, FCC Division Chief, General Counsel to international telecom company.

• Other: Member, AFCEA, Board Member, Telecom Hub

• Education: BA & MA, Univ. of Pennsylvania JD, Georgetown University Law





Dan DoranQuantive Business Valuations, LLC


• Specialists: We work exclusively in valuation matters

• Valuation work for exit planning, acquisition analysis, stock options (409a), litigation support, estate and gift tax





Aileen PisciottaExecutive Counsel, PLC


YOUR LOGO HERE

Executive Counsel, PLC is a unique Virginia-based law firm comprised exclusively of senior attorneys who are former in-house counsels and provide high-level outsourced general counsel services from the corporate perspective, without expensive overhead and on an as-needed basis.





PRESENTATION


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Maximizing the Value of Your GovCon Business.








Maximizing the Value of Your GovCon Business

FINANCIAL CONSIDERATIONS





Key Value Drivers

• Earnings

• Risk

• Growth






Multiple Method

• Value = EBITDA x Multiple(Earnings Before Interest Taxes Depreciation & Amortization)

• Simplifying… but the “usual” way to value

Obvious Take Away:

More Earnings = Higher Value






Growth

• Companies are priced on past performance…. But purchased for the future

• Higher multiple today really means a “market rate” multiple of future earnings






Risk

• Valuation is always a means of pricing risk

• Higher Risk investments demand a higher return on investment

• …. Higher ROI for the purchaser yields a lower purchase price for the seller






De-Risking The Company

• Enhance value by eliminating or mitigating risk drivers

• Big areas of concern in GovCon• LPTA (Lowest Price Technically Acceptable)• 8(a) / set aside / small• Thin management• No bid / capture / BD capability• Low margin / low skill work






2016 US Federal Government Contracting Webinar SeriesThere’s No Such Thing as Average

A focus on enhancing growth & de-risking helps move you off “average”





Maximizing the Value of Your GovCon Business

LEGAL CONSIDERATIONS





Keys to protecting current revenue and future growth prospects through

legal infrastructure

• Controlling current legal risk variables• Contracts• Assets• Corporate control

• Anticipating and mitigating future risk• Rules governing change


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Identity Crisis • Loss of intellectual property, disclosure

of competitively sensitive information, loss of reputation

• Fixes:• ©, ™, and patents (protect and

avoid infringement)• Strong NDAs, trade secrets• Non-disparagement clauses


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House of Cards • Alter ego claims, loss of size class or SBA

certification, ostensible subcontractor, fraud/debarment

• Fixes:• Corporate formalities• Avoid interlocking directors• Transparent governance• Strict regulatory compliance• Proper employee classification


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Back Door Break-Ins • Surprise claims, losses, liabilities, costs;

lost revenues

• Fixes:• Strong contracts (indemnities,

damage and warranty exclusions, liability limits)

• Effective legal recourse• Adequate insurance• Business continuity plans


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Bad Break-Ups

• Disgruntled personnel, partner fall out, value theft, fuzzy equity, minority claims

• Fixes:• Non-solicitation/non-compete • Controlled equity • Preset valuation formula• Clear rules for divorce (buy-sell)• Litigation preparation (documents

and privilege)


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Stumbling Blocks

• Transaction impediments

• Fixes:• Limited pre-emption rights• Drag along rights• Contract assignment• Corporate culture


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CONCLUSIONS


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CONCLUSIONS• FINANCIAL: De-risk and pushing growth

yields biggest value enhancement • LEGAL: Shoring up your legal

infrastructure is key to enhancing the value of your company by protecting both current revenue and future growth opportunities.


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Q & A


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CONTACT DETAILSMs. Jennifer L. Schaus

Washington DC+ 1 - 2 0 2 – 3 6 5 – 0 5 9 8

[email protected] www.JenniferSchaus.com

------------------------------Aileen Pisciotta

Executive Counsel, PLC2 0 2 – 6 6 4 – 0 1 0 1

[email protected]

Dan Doran

Quantive Business Valuations8 8 8 – 8 2 7 – 1 6 2 4

[email protected]

YOUR LOGO HERE

mailto:[email protected]

http://www.jenniferschaus.com/


http://www.exec-counsel.com/


http://www.quantivevaluations.com/



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CALENDAR OF EVENTS:(All Webinars are at 12pm EST & Recorded)

JUNE 1 - Maximizing The Value of Your GovCon Business https://attendee.gotowebinar.com/register/74156936435694851

JUNE 2 - Capture Planning - To Bid Or Not To Bid https://attendee.gotowebinar.com/register/7051206926535220483

JUNE 3 - Teaming Agreements - The Good, The Bad & The Enforceable https://attendee.gotowebinar.com/register/7352313683359938307

JUNE 6 - Teaming With Tribally Owned 8(a) Businesseshttps://attendee.gotowebinar.com/register/4324839202604449539

JUNE 7 - Color Reviews For Successful Proposals https://attendee.gotowebinar.com/register/3973323136181419267

JUNE 8 - Preparing The FSO for a DSS Audit https://attendee.gotowebinar.com/register/423786240906737667

JUNE 9 - Life After 8(a) - Best Practices & Case Study https://attendee.gotowebinar.com/register/6473232146721067779

JUNE 10 - The Politics Of Procurement https://attendee.gotowebinar.com/register/3924758807094447107

JUNE 13 - Contract Administration - Best Practices https://attendee.gotowebinar.com/register/2132047978959217667

JUNE 14 - So You Have A Facility Clearance, Now What? https://attendee.gotowebinar.com/register/9028972158695833091

JUNE 15 - Unsolicited Proposals - Why, What & How.https://attendee.gotowebinar.com/register/4729436391901262849

JUNE 17 - SBIR's - The Good, The Bad & The "How"https://attendee.gotowebinar.com/register/6337198369128857857


















Documents

FEDERAL Govt Contracting - Maximizing The Value of Your GovCon Business