FEDERAL Govt Contracting - Maximizing The Value of Your GovCon Business

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Maximizing the Value of Your GovCon Business US
Federal Government Contracting Webinar Series -
2016 Presented By Aileen Pisciotta and Dan
Doran JUNE 1, 2016
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2016 US Federal Government Contracting Webinar
Series
CALENDAR OF EVENTS (All Webinars are at 12pm EST
Recorded) JUNE 1 - Maximizing The Value of
Your GovCon Business  https//attendee.gotowebinar
.com/register/74156936435694851 JUNE 2 - Capture
Planning - To Bid Or Not To Bid  https//attendee.
gotowebinar.com/register/7051206926535220483  JUN
E 3 - Teaming Agreements - The Good, The Bad
The Enforceable  https//attendee.gotowebinar.com/
register/7352313683359938307 JUNE 6 - Teaming
With Tribally Owned 8(a) Businesses https//attend
ee.gotowebinar.com/register/4324839202604449539 J
UNE 7 - Color Reviews For Successful
Proposals  https//attendee.gotowebinar.com/regist
er/3973323136181419267 JUNE 8 - Preparing The
FSO for a DSS Audit  https//attendee.gotowebinar.
com/register/423786240906737667 JUNE 9 - Life
After 8(a) - Best Practices Case
Study  https//attendee.gotowebinar.com/register/6
473232146721067779 JUNE 10 - The Politics Of
Procurement   https//attendee.gotowebinar.com/reg
ister/3924758807094447107  JUNE 13 - Contract
Administration - Best Practices  https//attendee.
gotowebinar.com/register/2132047978959217667 JUNE
14 - So You Have A Facility Clearance, Now
What?  https//attendee.gotowebinar.com/register/9
028972158695833091 JUNE 15 - Unsolicited
Proposals - Why, What How. https//attendee.goto
webinar.com/register/4729436391901262849 JUNE 17
- SBIR's - The Good, The Bad The
"How" https//attendee.gotowebinar.com/register/63
37198369128857857
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2016 US Federal Government Contracting Webinar
Series

• AGENDA

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2016 US Federal Government Contracting Webinar
Series

• AGENDA
• Introduction HOST
• Introduction - GUEST
• Presentation
• Conclusions
• Q A

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2016 US Federal Government Contracting Webinar
Series

• INTRODUCTION
• Host

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2016 US Federal Government Contracting Webinar
Series

• Jennifer Schaus
• About The Host

Approx 20 Yrs in Gov Contracting Career
DB (Govt Division) Federal
Sales GSA Scheds Frequent Speaker Chambers,
NCMA, AFCEA, etc Member WIPG Education
Towson University B.A. UC Berkeley -
Leadership Accelerator Cornell University
- Exec Leadership
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2016 US Federal Government Contracting Webinar
Series

• Jennifer Schaus
• Jennifer Schaus Associates

DC Based Consulting Firm Over 10 Yrs in
Business Support Services for Gov
Cons Proposal Writing / Contract Vehicles
(GSA) Sales Biz Dev Certifications SBA
8(a) SDVO etc. Events
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2016 US Federal Government Contracting Webinar
Series

• INTRODUCTION
• Guests

YOUR LOGO HERE
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2016 US Federal Government Contracting Webinar
Series

• Dan Doran
• ABOUT OUR SPEAKER

• Valuation expert . with a background in real
  world MA
• Focused on value acceleration, exit planning
• Frequently published (Crains, Virginia Business,
  American Banker, etc)
• Education West Point

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2016 US Federal Government Contracting Webinar
Series

• Aileen Pisciotta
• ABOUT OUR SPEAKER

• Current Senior corporate commercial and govcon
  lawyer acts as outside general counsel to small
  business.
• Prior Large law firm partner, FCC Division
  Chief, General Counsel to international telecom
  company.
• Other Member, AFCEA, Board Member, Telecom Hub
• Education BA MA, Univ. of Pennsylvania
  JD, Georgetown University Law

YOUR PHOTO HERE
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2016 US Federal Government Contracting Webinar
Series

• Dan Doran
• Quantive Business Valuations, LLC

• Specialists We work exclusively in valuation
  matters
• Valuation work for exit planning, acquisition
  analysis, stock options (409a), litigation
  support, estate and gift tax

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2016 US Federal Government Contracting Webinar
Series

• Aileen Pisciotta
• Executive Counsel, PLC

Executive Counsel, PLC is a unique Virginia-based
law firm comprised exclusively of senior
attorneys who are former in-house counsels and
provide high-level outsourced general counsel
services from the corporate perspective, without
expensive overhead and on an as-needed basis.
YOUR LOGO HERE
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2016 US Federal Government Contracting Webinar
Series

• PRESENTATION

• Maximizing the Value of Your GovCon Business.

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2016 US Federal Government Contracting Webinar
Series

• Maximizing the Value of Your GovCon Business
• FINANCIAL CONSIDERATIONS

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2016 US Federal Government Contracting Webinar
Series

• Key Value Drivers
• Earnings
• Risk
• Growth

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2016 US Federal Government Contracting Webinar
Series

• Multiple Method
• Value EBITDA x Multiple
• (Earnings Before Interest Taxes Depreciation
  Amortization)
• Simplifying but the usual way to value
• Obvious Take Away
• More Earnings Higher Value

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2016 US Federal Government Contracting Webinar
Series

• Growth
• Companies are priced on past performance. But
  purchased for the future
• Higher multiple today really means a market
  rate multiple of future earnings

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2016 US Federal Government Contracting Webinar
Series

• Risk
• Valuation is always a means of pricing risk
• Higher Risk investments demand a higher return on
  investment
• . Higher ROI for the purchaser yields a lower
  purchase price for the seller

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2016 US Federal Government Contracting Webinar
Series

• De-Risking The Company
• Enhance value by eliminating or mitigating risk
  drivers
• Big areas of concern in GovCon
• LPTA (Lowest Price Technically Acceptable)
• 8(a) / set aside / small
• Thin management
• No bid / capture / BD capability
• Low margin / low skill work

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2016 US Federal Government Contracting Webinar
Series
Theres No Such Thing as Average
A focus on enhancing growth de-risking helps
move you off average
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2016 US Federal Government Contracting Webinar
Series

• Maximizing the Value of Your GovCon Business
• LEGAL CONSIDERATIONS

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2016 US Federal Government Contracting Webinar
Series

• Keys to protecting current revenue and future
  growth prospects through legal infrastructure
• Controlling current legal risk variables
• Contracts
• Assets
• Corporate control
• Anticipating and mitigating future risk
• Rules governing change

YOUR LOGO HERE
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2016 US Federal Government Contracting Webinar
Series

• Identity Crisis
• Loss of intellectual property, disclosure of
  competitively sensitive information, loss of
  reputation
• Fixes
• , , and patents (protect and avoid
  infringement)
• Strong NDAs, trade secrets
• Non-disparagement clauses

YOUR LOGO HERE
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2016 US Federal Government Contracting Webinar
Series

• House of Cards
• Alter ego claims, loss of size class or SBA
  certification, ostensible subcontractor,
  fraud/debarment
• Fixes
• Corporate formalities
• Avoid interlocking directors
• Transparent governance
• Strict regulatory compliance
• Proper employee classification

YOUR LOGO HERE
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2016 US Federal Government Contracting Webinar
Series

• Back Door Break-Ins
• Surprise claims, losses, liabilities, costs lost
  revenues
• Fixes
• Strong contracts (indemnities, damage and
  warranty exclusions, liability limits)
• Effective legal recourse
• Adequate insurance
• Business continuity plans

YOUR LOGO HERE
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2016 US Federal Government Contracting Webinar
Series

• Bad Break-Ups
• Disgruntled personnel, partner fall out, value
  theft, fuzzy equity, minority claims
• Fixes
• Non-solicitation/non-compete
• Controlled equity
• Preset valuation formula
• Clear rules for divorce (buy-sell)
• Litigation preparation (documents and privilege)

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2016 US Federal Government Contracting Webinar
Series

• Stumbling Blocks
• Transaction impediments
• Fixes
• Limited pre-emption rights
• Drag along rights
• Contract assignment
• Corporate culture

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2016 US Federal Government Contracting Webinar
Series

• CONCLUSIONS

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2016 US Federal Government Contracting Webinar
Series

• CONCLUSIONS
• FINANCIAL De-risk and pushing growth yields
  biggest value enhancement
• LEGAL Shoring up your legal infrastructure is
  key to enhancing the value of your company by
  protecting both current revenue and future growth
  opportunities.

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2016 US Federal Government Contracting Webinar
Series

• Q A

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CONTACT DETAILS Ms. Jennifer L. Schaus Washington
DC 1 - 2 0 2 3 6 5 0 5 9 8 jschaus_at_jennifers
chaus.com www.JenniferSchaus.com ----------------
-------------- Aileen Pisciotta Executive
Counsel, PLC 2 0 2 6 6 4 0 1 0
1 apisciotta_at_exec-counsel.com www.exec-counsel.com
Dan Doran Quantive Business Valuations 8 8 8
8 2 7 1 6 2 4 dandoran_at_quantivevaluations.com ww
w.quantivevaluations.com
YOUR LOGO HERE
32
2016 US Federal Government Contracting Webinar
Series
CALENDAR OF EVENTS (All Webinars are at 12pm EST
Recorded) JUNE 1 - Maximizing The Value of
Your GovCon Business  https//attendee.gotowebinar
.com/register/74156936435694851 JUNE 2 - Capture
Planning - To Bid Or Not To Bid  https//attendee.
gotowebinar.com/register/7051206926535220483  JUN
E 3 - Teaming Agreements - The Good, The Bad
The Enforceable  https//attendee.gotowebinar.com/
register/7352313683359938307 JUNE 6 - Teaming
With Tribally Owned 8(a) Businesses https//attend
ee.gotowebinar.com/register/4324839202604449539 J
UNE 7 - Color Reviews For Successful
Proposals  https//attendee.gotowebinar.com/regist
er/3973323136181419267 JUNE 8 - Preparing The
FSO for a DSS Audit  https//attendee.gotowebinar.
com/register/423786240906737667 JUNE 9 - Life
After 8(a) - Best Practices Case
Study  https//attendee.gotowebinar.com/register/6
473232146721067779 JUNE 10 - The Politics Of
Procurement   https//attendee.gotowebinar.com/reg
ister/3924758807094447107  JUNE 13 - Contract
Administration - Best Practices  https//attendee.
gotowebinar.com/register/2132047978959217667 JUNE
14 - So You Have A Facility Clearance, Now
What?  https//attendee.gotowebinar.com/register/9
028972158695833091 JUNE 15 - Unsolicited
Proposals - Why, What How. https//attendee.goto
webinar.com/register/4729436391901262849 JUNE 17
- SBIR's - The Good, The Bad The
"How" https//attendee.gotowebinar.com/register/63
37198369128857857