M&A Deals Involving Government Contractors: Conducting Due Diligence and Mitigating Risks Under Increased Oversight

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Commercial Law
- event Date
Tuesday, June 18, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will provide guidance to M&A counsel for addressing the unique and heightened legal risks in M&A transactions involving government contractors. The panel will discuss best practices for conducting thorough due diligence and allocating and mitigating risks, as well as review the recent attention, oversight, and regulatory scrutiny for transactions involving U.S. Department of Defense (DOD) contractors.
Faculty

Mr. Jorgensen is a recognized thought leader in the area of public procurement law with a particular focus on assisting contractors with M&A transactions, including the evaluation of key compliance considerations and related risks. His practice with regard to government contractor M&A transactions involves drafting and negotiating transaction documents, leading due diligence reviews, assessing the strength of contractor compliance systems and assisting with integration activities. Often in connection with this work, Mr. Jorgensen counsels on national industrial security matters, including strategies for mitigating Foreign Ownership, Control or Influence. Additionally, he regularly litigates high-stakes bid protests before the Government Accountability Office and the Court of Federal Claims. Mr. Jorgensen frequently teaches and publishes on bid protest procedures, theories and strategy.

Ms. Yi represents businesses across a broad range of sectors as they move through the contracting process with federal, state and local governments, and when they engage in international transactions. She counsels public and private companies on day to day compliance challenges, and supports clients in responding to criminal and government investigations. Ms. Yi is a regular contributor to the firm’s Government Contracts & International Trade Blog, where she provides insight on the demanding and ever-changing regulatory environment. She rejoined the firm in 2024 after serving as a Senior Attorney, U.S. Public Sector, with IBM

Mr. Wagman heads the firm’s Government Contracts Practice. For more than 20 years, he has been a trusted advisor to clients of all sizes in a broad range of industries in all facets of conducting business with the government including government contracts, grants, and other federally-funded projects. His experience ranges from representing companies in litigation matters before courts and administrative tribunals to advising clients and corporate counsel in transactional matters and regulatory compliance. Mr. Wagman has deep transactional experience and regularly acts as co-counsel advising clients and transactional attorneys on the unique regulatory requirements and risks applicable to the federal marketplace. He regularly represents buyers, sellers and investors in corporate transactions involving government contractors, including conducting due diligence, advising on appropriate deal terms and addressing statutory and regulatory requirements related to transfers. Mr. Wagman has also advised creditors and borrowers in financing and restructuring transactions. He has represented companies in several transactions involving classified contracts and advised on foreign acquisitions requiring foreign ownership, control or influence mitigation procedures. Additionally, he regularly counsels companies on day-to-day contract matters including government IP issues and unique corporate compliance requirements.
Description
Government contractors are generally good investments because the government is the largest qualified buyer/customer of technology, there are greater lower/middle market opportunities, and market forces have limited impact on the government buyer. However, mergers and acquisitions involving companies that conduct business with the federal government present a unique set of challenges. Several statutes and regulations are implicated in such transactions, whether the federal government is a company's smallest customer or its only customer.
Recent DOD and Government Accountability Office (GAO) reports and comments from Senators Warren and Round indicate that there is growing executive and legislative interest throughout the government to take a more exhaustive look at DOD-adjacent M&A transactions. If the concerns and recommendations from these government sources take root, M&A transactions involving government contractors are likely to face increased oversight for a broader range of potential issues. Large defense contractors may also face greater competition as procurement opportunities are broken up.
Careful and thorough due diligence is critical to uncovering, allocating, and mitigating the unique risks associated with M&A transactions involving government contractors and calculating the real value of the target.
Listen as our authoritative panel discusses the unique and complex legal issues involved with government contractor M&A transactions and provides best practices for navigating the due diligence process and mitigating risks under increased regulatory scrutiny.
Outline
- Overview of market conditions and developments in government contractor M&As
- Increased scrutiny of DOD contractor deals
- Why government contractors are good investments
- Ideal attributes of a government contractor target/acquisition
- Unique government contracting rules that affect M&A transactions
- Challenges with government contractor investments
- Special due diligence considerations
- Best practices to minimize risk
- Key integration considerations
- Government contractor M&A outlook
- Key takeaways
Benefits
The panel will review these and other key issues:
- What are the latest developments in M&A transactions involving government contractors and what factors are driving the increased regulatory scrutiny relating to these deals?
- Why are government contractors good investments and what are the ideal attributes of a government contractor target/acquisition?
- What are the challenges in a government contractor M&A transaction and how can these challenges be minimized with effective due diligence?
- How can deal parties minimize liability exposure in M&A transactions involving government contractors?
- What does increased executive and legislative interest in government contractor M&A transactions mean for the future of these deals?
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