ZOOM Government Contracting SIG : How to Sell Your Business at a Higher Multiple Thanks to the All Small Mentor Protege Program
Event Type(s):
Special Interest Group Event
Description:
Topic: How to Sell Your Business at a Higher Multiple Thanks to the All Small Mentor Protégé Program
Elvis Oxley, Managing Director of Federal Market Access at BDO, will share his insights into SBA’s relatively new All Small Mentor Protégé Program which he touts as the greatest M&A system ever devised. Rather than solely relying on financials to make a go/no go decision on an acquisition, the MPP allows Mentors to invest upwards of 40% in a small government contractor without any affiliation violations. The joint ventures they then form are more likely to win new contracts because both sets of small business set-asides and past performance are represented in the JV. Rather than wait for an acquisition offer that may never formulate, Elvis encourages Small Businesses to seek out acquisitive Mentors with which they can increase P-win and future growth, and thus a higher multiple.
Key Takeaways:
SBA’s relatively new All Small Mentor Protégé Program (MPP) allows for small business (Protégé) to officially engage with Mentors (small or large business) for mutual benefit.
Mentors may invest upwards of 40% equity in Proteges with no affiliation violation.
MPP Joint Ventures embody the full scope of past performance, and full set of small business set-asides, of both parties.
In FY’19 nearly $2b in new contract revenue was earned by participants in SBA’s All Small Mentor Protégé Program.
Acquisitive Government Contractors should consider the MPP the greatest, most easily replicable M&A system ever devised.
Small Government Contractors seeking to sell their firms typically have to endure a 2-3 year earn-out. The significantly greater chance of MPP JVs winning contract awards will eventually lead to higher valuation multiples based on future earnings. The 40% equity allows a shrewd Small contractor to recap their table, make strategic hires, optimize operations, increase EBITA and prepare for a sale.
Benefits: 1 hour of CPE (free to Northern Chapter VSCPA members; guests pay $15)
Time: Zoom meeting opens at 7:45 AM, Program starts at 8:00 AM, done by 9:30 AM
(Zoom meeting information will be sent with your email confirmation)
Please mark your calendars for these upcoming breakfasts as well. Please us me know what topics you would like to see in the next season, or if you have a speaker recommendation.
15-Sep-20 Elvis Oxley, BDO, How to Sell Your Business at a Higher Multiple Thanks to the All Small Mentor Protégé Program
10-Nov-20 Warren Beinart, BDO, “Out of Chaos, comes Clarity” Presentation on PM tools to help an organization restructure
