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By Robert Rubin Senior Managing Director

With an ongoing worldwide pandemic and economies in free fall – our world is full of uncertainty. Many businesses are faced with the challenge of survival daily. Does this sound like a good time to be thinking about long term issues of growth or ways to enhance the value of your business? If you are a government contractor, particularly with revenues in the range of $10 - $50 million the tumult throughout the world could present an unparalleled opportunity to do just that! As we saw during the financial meltdown in 2008, the impact of macroeconomic factors on government contractors is not as profound as that experienced by other sectors of our economy. That’s not to say there were not challenges that need to be addressed. But I believe they tend to be more operational rather than financial in nature. Some examples include no in-person meetings with clients, transferring work previously being performed at the client site to different locations, and the impact on efficiency and creativity due to the inability to meet in person and exchange ideas. For classified work, these can be particularly challenging adjustments to make. On the other hand, from most of the government contractors we have been talking with recently, their people are still working at generally the same level of effort and bills are being paid in a timely manner. In fact, for those who are directly supporting the SBA’s PPP and other efforts, they have seen an exponential expansion of their business. While procurements for goods and services to support the effort to fight the pandemic are expedited, the biggest concern we have heard is the procurement process and new contract awards for items that are not essential to the current problems are experiencing a slowdown. Eventually business may likely return to the “new normal” and a huge deficit of trillions of dollars will likely have to be dealt with. It seems logical to think federal and state governments may look to increase revenues through a combination of higher taxes and fees and implement significant reductions in spending. Picking the winners and losers and how that may play out is something that government contractors will likely have to contend with over the next few years. I believe this is the biggest challenge which is causing a lot of consternation to owners of small and medium sized businesses. For some time, M&A activity in the government contracting arena, particularly at the upper end, has reflected strong buyer demand resulting in a sellers’ market. At the lower end of the market, small and medium sized companies with a large amount of restricted work, with some exceptions, may have experienced a slow but steady contraction in valuations as market multiples continue to decline. Faced with many of the structural challenges that make growing beyond the small business size standards and/or being able to compete for larger, more technical awards, and the uncertainty presented in the future may have already caused many owners who were previously “on the fence” to begin seriously considering an exit.


For those who are up to the challenge, the opportunity to obtain new contracts, clients, skills, or products while enhancing critical mass and the ability to pursue larger procurements at a reasonable price may never be better than right now. In addition, being a well-capitalized and motivated buyer, at the lower end of the market, will likely be a strong differentiator. Though conventional financing for an M&A transaction is still available, in conversations with bankers they indicate that underwriting standards and pricing will likely be tighter going forward. Finally, there are more alternative financing sources than ever before that are interested in getting into or expanding their portfolios into the government contracting arena. Creative financial structures are usually one of the ways these transactions get done in a manner that meets the goals of all parties.


So, is now the time for bold thinking?


We believe the answer is an unqualified “YES”. Please feel free to contact me to discuss this article in further detail or discuss your specific situation as part of a free evaluation of your options.


The opinions herein are of the individual and not necessarily of Boustead Securities, LLC or Trident Advisors. There is no guarantee that any specific outcome will be achieved.


 

About Robert N. Rubin


Robert Rubin joined Boustead as Senior Managing Director in 2020 and has over 35 years of experience in Mergers and Acquisitions, the last 25 of which have been specifically focused on the technical services marketplace including Aerospace, Defense and Government contracting in the Washington DC Metropolitan area.

In addition to his background in M&A, he has extensive experience in corporate finance and development with public and privately held companies. He has been involved in more than 40 transactions worldwide, and served as President of the National Capital Chapter and on the International Board of Directors for ACG. Robert is a FINRA registered representative and holds series 7, 24, 63, 79 and 99 licenses.

For more information on M&A's contact:

Robert Rubin

(301) 537-8221


 

About Boustead Securities, LLC

Boustead Securities, LLC (“Boustead”) is an investment banking firm that executes and advises on IPOs, mergers and acquisitions, capital raises and restructuring assignments in a wide array of industries, geographies and transactions, for a broad client base. Boustead’s core value proposition is the ability to create opportunity through innovative solutions and tenacious execution. With experienced professionals in the United States, Boustead’s team moves quickly and provides a broad spectrum of sophisticated financial advice and services. Boustead is a majority owned subsidiary of Boustead & Company Limited, a diversified non-bank financial institution. For more information, please visit www.boustead1828.com.


Forward-Looking Statements

This document contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this document and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this document and other statements made from time to time by us or our representatives might not occur.

Boustead's CD-Based Robert Rubin Presents: 'How New PPP Guidance From The SBA Could Impact Mergers and Acquisitions' Hosted by Octane's Ignite Series

On Wednesday, November 11th, Boustead Securities, LLC's ("Boustead"), Washington, DC-based Senior Managing Director, Robert N. Rubin, leads the Octane Ignite Series webinar:


Wednesday, November 11 12:00 PM—12:45 PM PT


PPP loans have been a lifeline for many businesses during the current economic downturn caused by the Covid-19 pandemic. Many PPP loan recipients are still experiencing financial distress and are grappling with what the future may hold. We are seeing a marked pick up in owners of businesses with revenues of $10-50 million across a wide array of industry segments, who are now seriously considering a sale as the best path to maximize and realize enterprise value.

New guidance from the SBA regarding PPP loan recipients could potentially add time and complexity to the M&A process. These requirements need to be understood early in the transaction process by both buyers and sellers to avoid the potential for undermining the goals of both parties.


 

About Robert N. Rubin

Robert Rubin joined Boustead as Senior Managing Director in 2020 and has over 35 years of experience in Mergers and Acquisitions, the last 25 of which have been specifically focused on the technical services marketplace including Aerospace, Defense and Government contracting in the Washington DC Metropolitan area. In addition to his background in M&A, he has extensive experience in corporate finance and development with public and privately held companies. He has been involved in more than 40 transactions worldwide, and served as President of the National Capital Chapter and on the International Board of Directors for ACG.  Robert is a FINRA registered representative and holds series 7, 24, 63, 79 and 99 licenses. For more information on M&A's contact: Robert Rubin (301) 537-8221 Robert.Rubin@boustead1828.com


 

About Octane: Octane is building the SoCal of Tomorrow by connecting people, resources and capital to fuel technology growth in Southern California. Octane has helped more than 800 companies via the LaunchPad™ SBDC accelerator. LaunchPad™ companies have received more than $2.4 billion in investment and equity exits. For more information, please visit www.octaneoc.org.

About Boustead Securities, LLC

Boustead Securities, LLC (“Boustead”) is an investment banking firm that executes and advises on IPOs, mergers and acquisitions, capital raises and restructuring assignments in a wide array of industries, geographies and transactions, for a broad client base. Boustead’s core value proposition is the ability to create opportunity through innovative solutions and tenacious execution. With experienced professionals in the United States, Boustead’s team moves quickly and provides a broad spectrum of sophisticated financial advice and services. Boustead is a majority owned subsidiary of Boustead & Company Limited, a diversified non-bank financial institution. For more information, please visit www.boustead1828.com.

Forward-Looking Statements

This document contains forward-looking statements.  In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing.  We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us.  Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities.  You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms.  In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business.  These and other factors may cause our actual results to differ materially from any forward-looking statement.  Forward-looking statements are only predictions.  The forward-looking events discussed in this document and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us.  We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this document and other statements made from time to time by us or our representatives might not occur.


Boustead & Company Limited and its affiliated group of companies (collectively “Boustead”), a financial services firm whose affiliates execute and advise on IPOs, mergers and acquisitions, capital raises, project finance, pre-transaction advisory, financial restructuring, sales & trading, crowdfunding, and business valuation services to emerging growth and middle-market companies, is pleased to welcome five seasoned DC-based M&A professionals to the team, including Jiemin Jordan, Robert Rubin, Wesley Teague, Tom Verbeck, and Barton Whitman. Ron E. Ainsworth, Principal of Boustead & Company Limited, brought the DC-based M&A group to Boustead. “Our goal is for this group of seasoned professionals to leverage and expand our success in cyber security, government contracting, healthcare and life sciences to customers on the east coast”, according to Ainsworth.


M&A Professionals


Jiemin Jordan is a seasoned entrepreneur and business executive. She serves as a mentor and an investor of Mach37, a cybersecurity accelerator, and other local angel groups. She is also the managing partner of the Decisive Investment Group and has funded over 200 business transactions. She brings 18+ years executive leadership, business operation, debt financing and corporate transaction experience in Cyber Security, Government Contracting, Real Estate and information technology innovation to Boustead team. In her free time, she serves an Entrepreneur in residence for George Washington University.   Robert Rubin, a principal of Trident Advisors has over 35 years of experience in Mergers and Acquisitions, the last 25 of which have been specifically focused on the technical services marketplace including Aerospace, Defense and Government contracting in the Washington DC Metropolitan area. In addition to his background in M&A, he has extensive experience in corporate finance and development with public and privately held companies. He has been involved in more than 40 transactions worldwide, and served as President of the National Capital Chapter and on the International Board of Directors for ACG.  Robert is a FINRA registered representative and holds series 7, 24, 63, 79 and 99 licenses. Wesley Teague was a partner in Indian River Advisors for six years prior to joining Boustead, and brings over 37 years of C-level executive experience in the commercial, financial, and Federal contracting and defense market sectors. Throughout his career, Wes has concentrated on maximizing corporate growth both as a principal and as an advisor. Wes has extensive experience with all types of corporate transactions including acquiring companies, company recapitalizations and corporate exits with specialized expertise in pre-acquisition due diligence and post-acquisition integration. Wes is a Registered Representative with FINRA and holds Series 63 and 82 licenses and is a FINRA Dispute Resolution Arbitrator. Tom Verbeck, a principal of Trident Advisors has 45 plus years of extraordinary successful, extensive, operational technical leadership in times of adversity/peace, in United States Air Force (achieving Brigadier General); business – Leading successfully multi-Military service, and business development organizations (multiple levels (politically and technically) communications/information and information technology, Health IT and Cyber operations – globally. Named a Federal Top 100 CIO. Tom has a BS in Electrical and Electronics Engineering from Virginia Tech and MS in Systems Management from University of Southern California. An Industrial College of the Armed Forces, graduate. Tom served on boards and advisory councils, including AFCEA and JAS Energy. He is an accomplished speaker; and he served as an adjunct professor in systems management and program management at Embry-Riddle University, and an Adjunct professor at the Defense Acquisition University. Barton Whitman, Founder of Trident Advisors brings over 30 years of C-level executive experience in federal contracting, defense systems, and commercial consulting. Throughout his career, Bart has had a steadfast and focused commitment to excellence through strategic and tactical planning, team-building, and positive leadership. Bart has significant experience and success with managing and growing start-up companies – having founded three businesses. He has also used M&A transactions to gain access to markets with significant barriers to entry and successfully integrated those acquisitions into his consulting firm. Prior to founding Trident Advisors, Bart worked in senior-level management positions with several firms including: Booz Allen & Hamilton, and international consulting firm; Logistics Management Institute, a not-for-profit think tank for the Department of Defense; United Technologies, a defense and commercial contractor; Aquidneck Management Associates, a DoD consulting firm; and the co-founder of MTS Technologies, a federal and commercial consulting firm.


Why Boustead

Boustead’s core value proposition is the ability to create opportunity through innovative solutions and tenacious execution. With experienced professionals in the United States and in other countries, Boustead’s team moves quickly and provides a broad spectrum of sophisticated financial advice and services. All of us at Boustead are diligently working remotely worldwide and are available to support you and your business to weather the impact of the COVID-19 pandemic, and more importantly, mount a winning comeback. Boustead's team of professionals have extensive experience in financing strategies, negotiating transactions, working with leveraged recapitalizations, asset sales, tax-free exchanges, and loan workouts. For more information, please visit www.bousteadco.com.

 

This is not a solicitation or offer to buy or sell securities. Investments may be speculative, illiquid and there is risk of loss of principal. Past performance is not indicative of future results. There is no guarantee that any specific outcome will be achieved.

About Boustead & Company Limited  Boustead & Company Limited is a diversified and comprehensive non-bank financial institution with offices in Los Angeles, New York, San Francisco, London and Beijing that is rapidly expanding in growth markets throughout the US and Asia. Through its principals and fully licensed subsidiaries, Boustead & Company possesses rich experience and exceptional capabilities in capital markets deal execution and is dedicated to providing best-in-class one-stop financial services to clients. Boustead’s comprehensive financial services platform consists of four operating units: Boustead Securities, LLC a US-based FINRA Broker/Dealer and middle-market investment bank; Sutter Securities Group, Inc., which owns four FINRA-regulated entities, Sutter Securities, Inc., Sutter Securities Clearing, LLC and FlashFunders Funding Portal, LLC, along with Sutter Securities Financial Services, Inc., Sutter Capital Partners, LLC a California Registered Investment Advisor; and Boustead Capital Markets, LLP a London-based FCA-regulated company. For more information, please visit www.bousteadco.com.


Forward-Looking Statements

This document contains forward-looking statements.  In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing.  We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us.  Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities.  You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms.  In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business.  These and other factors may cause our actual results to differ materially from any forward-looking statement.  Forward-looking statements are only predictions.  The forward-looking events discussed in this document and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us.  We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this document and other statements made from time to time by us or our representatives might not occur.

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