BLOG: Important Considerations When Structuring M&A Transactions for Government Contractors: Pre-Transaction Part 1 of a 3-Part Series
M&A transactions involving government contractors carry several regulatory and industry-specific considerations that can materially impact all aspects of the deal—from high-level structuring considerations to risk allocation for compliance issues to additional administrative checklist items. If neglected or overlooked, they can result in major headaches. This three-part series outlines certain key issues to consider before, during, and after transactions involving government contractors. Pre-Transaction: Novation The Anti-Assignment Act (41 U.S.C. § 6305) generally prohibits companies from selling government contracts. However, the Federal . . . Read More
BLOG: New York v. Delaware Part 2: Which State is Best for Governing Law?
In Part 2 of this blog series (visit this link for Part 1), we dive into which state—New York or Delaware—is best for businesses to consider as governing law for their contracts. Both Delaware and New York have a reputation for being the governing law or jurisdiction of choice in commercial agreements and corporate transactions. A company’s decision will greatly impact which rules and laws govern agreements when legal issues arise. Where Should I Go for Governing Law? Both Delaware and New . . . Read More
BLOG: New York v. Delaware Part 1: Which State Is Best to Incorporate My Business?
Business owners often have two questions when launching their business and growing it through commercial relationships and/or corporate transactions. These questions are “where should I incorporate?”, and once the business is incorporated and operating, “what should the applicable law be of our agreements?” Two states come to mind when dealing with these questions. Both Delaware and New York have developed a reputation for purposes of incorporating businesses and being the governing law/jurisdiction of choice in commercial agreements and corporate transactions. . . . Read More
BLOG: Healthcare Company Investments and Acquisitions
In recent years, acquisitions of and investments in healthcare companies have been on the rise, particularly driven by increasing private equity investment activity. These investments can provide unique opportunities for healthcare companies to grow and for investors to realize the benefits of the expanding healthcare industry. While these acquisitions and investments often look and feel like standard acquisitions and investments, the highly regulated nature of the healthcare industry imposes additional risks and requirements on any investor in these companies. This . . . Read More
BLOG: Government Contractor Acquisitions and Clearances: Deal Structure Matters
Our Corporate and Government Contracts attorneys often counsel contractors interested in acquiring an entity with a clearance or assets used on a classified contract. The clearance is a consideration in the transaction that cannot be overlooked. Indeed, the clearance is often one of the seller’s most important “assets.” Buyers and sellers alike should be aware of the National Industrial Security Program Operating Manual (“NISPOM”) requirements. For instance, if the acquisition is a stock purchase and the buyer holds the acquired firm as . . . Read More
BLOG: Special Considerations When Forming a Medical Professional Services Company
While it is often thought that forming a business is a simple process accomplished by filing formation documents provided by a jurisdiction’s Secretary of State (or equivalent), actual compliance with a particular jurisdiction’s corporate and/or limited liability company law provisions requires further analysis. For many types of professional services businesses, most states require such professional services businesses to organize as professional corporations (“PCs”) or professional limited liability companies (“PLLCs”), which impose additional organizational requirements. Professional services businesses are often categorized . . . Read More
BLOG: Why Government Contractors Should Know About the Delaware LLC Division Statute
Relatively often in the government contracting industry a business finds itself in the position where, for one reason or another, it needs to split, fracture, or otherwise reorganize its operations by separating one line of business or division into a separate entity. When prime federal contracts are transferred from one entity to another, it often necessitates a novation agreement with the contracting government agency. Many government contractors discover the novation process to be relatively lengthy and burdensome, with the potential . . . Read More
BLOG: Trends in Mergers and Acquisitions
Trends in Mergers and Acquisitions“What’s market?” is an important question for the buyer and seller to ask in a merger and acquisition (M&A). Along with counsel from a skilled M&A attorney, having a basic understanding of what terms are typical in the current M&A market will help businesses that are in the market to buy or sell a business (1) better analyze the reasonableness of specific terms offered by the other side and, if an offered term is not typical, . . . Read More
BLOG: How Government Contractors Can Take Advantage of CPARS Trends to Win (and Maintain) Federal Contracts
On July 18, 2019, the Professional Services Council hosted an important event covering Contractor Performance Assessment Reporting System (“CPARS”) trends, their impact on contractor past performance ratings, and the consequence they have on winning federal contracts. As one of the speakers at this event, PilieroMazza’s Samuel Finnerty offered recommendations on what government contractors can do now to proactively engage and manage their CPARS ratings and position themselves for future growth. One of the most interesting trends discussed was the sharp decline . . . Read More
BLOG: Department of Defense Sets Course on Cybersecurity Evaluation and Enforcement
On a limited budget, government contractors need to be compliant with a litany of statutes, regulations, and industry standards in order to remain competitive in the marketplace. This has become particularly true in the cybersecurity context. With no overarching federal law for cybersecurity standards or privacy protection (though the U.S. Senate is in the process of discussing a bipartisan privacy bill as they have done, unsuccessfully, in prior legislative sessions), rulemaking authorities have taken it upon themselves to create industry . . . Read More