Red Team’s M&A advisory process starts with a consultation to grasp the client’s objectives and capabilities. We blend structured analysis with unstructured research. Structured analysis involves delving into federal contracting data to assess potential targets’ contract spend, agency experience, revenue, and capabilities. Unstructured research taps into our network, including government contractors, clients, and industry trends.
Once potential targets have been identified, Red Team will help our client narrow down an initial target list, evaluate the potential targets and determine whether they are well-aligned to our client’s needs of market diversification, capability expansion, or expanding their foothold in a particular market. This may involve conducting further research, due diligence, market analysis, and reviewing contractual and/or small business regulatory issues.
While the ultimate objective is for our client to complete the acquisition of a target company, the ideal outcome of Red Team’s Buy-Side Advisory Service is to get one or more Letter of Intents for our client. We may continue to review additional information to validate past performance, contract spend, capabilities, staff and leadership, contract novation ability, or other contractual aspects of the specific target. Red Team will collaborate closely with the client to determine or assess financial targets, multiples, or other key provisions that may impact the eventual sale price.