In the last month, we’ve covered seven acquisitions, three of them just this week. It got me thinking, are we going to see a rush of mergers and acquisitions like we did last year?
Well, the short answer is “No,” but it is a little more complicated than that.
It is important to remember what was happening as 2012 closed and how that drove the deal making we saw last year.
The fiscal cliff was looming and with it was a feared expiration of the capital gains tax. If the rate expired, the tax hit sellers would take would soar. The pressure was on many interested sellers to get deals done avoid the increased tax burden.
Of the 103 transaction we tracked in 2012, 42 closed in the last quarter, with 20 of those in December.
But while we’re seeing an uptick in the last few weeks, it won’t match last year.
When I took an informal poll of several investment bankers, they agreed that there has been increased activity but it is more about setting the stage for 2014.
Posted on Dec 06, 2013 at 1:11 PM0 comments
A quick follow-up on my earlier blog about the troubles with the Homeland Security Department’s Eagle II contract: 10 more companies filed protests on Dec. 4.
Among these protesters are some of the biggest names in the business. This brings the total number of protests filed to 38, but 16 have been resolved in some way. They have either been dismissed because DHS is taking a corrective action, or have been withdrawn by the company, with a couple being denied by the Government Accountability Office.
That leaves 22 still active. Unisys was the first of the big names to file a protest, but they only beat some of the others by a day. With the filings on Dec. 5, there have been 19 protests filed since Nov. 26.
Large business protesters so far are:
- Exelis Inc.
- Harris IT Services Corp.
- SRA International
- CGI Federal
- Telecommunication Systems Inc.
Posted on Dec 05, 2013 at 8:14 AM0 comments
There is a not very well-kept secret out in the market, and I’ve struggled with how to cover it, and that’s the mess that the Homeland Security Department’s Eagle II seems to be becoming.
So far, 96 awards have been made across its three functional areas for IT services and its multiple small business categories. There also have been 28 protests, which have led DHS to pull back some awards. A couple protests have been denied by the Government Accountability Office, and a few others were withdrawn by the protester.
But plenty are still active, including 10 more that have been filed since Nov. 26. The biggest name on that list is Unisys Corp., an incumbent from the first Eagle contract.
Eagle II is perplexing for a couple reasons, and DHS seems to have a cone of silence around the procurement. I had a brief off-the-record conversation with one DHS official who told me to be patient and that everything would work out in time.
Posted on Dec 04, 2013 at 7:47 AM0 comments