Federal M&A Trends in Spin-Off and Divestiture Transactions

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Recent M&A Activity Sees Emergence in Spin-Offs and Divestitures

Federal contractors continue to adapt to the well-documented budget constraints. Competition for government contracts has increased, leading to bidding wars with more aggressive offers and slimmer margins. An increase in competition can typically spark M&A activity as companies vie for contracts and resort to acquisitions to expand their capabilities and win business. Through Q3 of 2014, public companies have been involved in roughly 50% of the deals, sparking a reemergence of mega mergers and consolidation amongst large industry players. While some companies have consolidated through acquisitions, like Cobham’s $1.5 billion purchase of …read more

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