Bob Kipps: “Huge” Room to Grow in Gov’t Market for Best-Positioned Firms

Bob Kipps - ExecutiveBiz

Bob Kipps, KippsDeSanto

In his M&A monthly wrap up for Executive Mosaic, Bob Kipps, managing director of KippsDeSanto & Co., cast his eye out over the horizon of the government contracting deals market and the specialities that will remain hot while defense and intelligence budgets remain “under pressure for the forseeable future.”

Although consolidation has helped shape the government contracting landscape over the past decade, Kipps sees opportunities as the market is highly fragmented at its middle and lower tiers, while funds are being spent on different solutions and priorities than in the past.

Firms specializing in select areas of intelligence, healthcare, data analytics, C4ISR, cloud computing and collaboration will continue to be picked up by larger players that are looking to stay in the government market in the long term, Kipps writes.

Sixteen defense and government services deals have closed so far this year, down from the 55 announced deals in the fourth quarter of 2012.

However, Kipps writes there is more to that juxtaposition than meets the eye, and “9 out of 10 buyers say they are ‘open for [deal] business’ and otherwise excited to see our clients coming to market.”

The result: even after potential cuts, “the U.S. Government market is huge with room to grow for the best-positioned firms.”

To learn more about where the market is heading and how players’ are adjusting, click here to read Kipps’ full M&A wrap up over on GovCon Wire.

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