Survey: Acquisitions still hot
One of five government contractors was involved in an acquisition over the preceding 18 months, according to a survey by consulting firm Grant Thornton LLP, Chicago.
Companies responding to the survey said their primary strategy was to acquire contracts from another firm, rather than purchasing the entire firm. Each company reported an average of nearly four transactions, according to the 8th annual Grant Thornton Government Contractor Industry Survey.
Nearly 40 percent of survey respondents participated in governmentwide acquisition contracts, while 43 percent participated in multiple-award contracts. More than 70 percent of the respondents said that GWACs and MACs benefit only large companies.
The repercussions of the Sept. 11 terrorist attacks continue to ripple through the government-contracting arena, according to the survey.
Twenty-two percent of respondents said they have repositioned their business focus because of the government's redistribution of resources, while 26 percent said they have formally altered their business plans.