Mergers & Acquisitions

Our team has supported over 250 successful transactions and over 500 due diligence assignments in the Defense, Aerospace, and Government Services markets over the last 20 years.  Having run corporate development functions in their entirety, Arena provides the expertise, research, analysis and executive support required to develop an M&A strategy, execute a target search, perform cross-functional and commercial due diligence, negotiate agreements, organize financing and build and implement an integration plan.

Custom M&A Strategy Development & Target Search

We provide M&A target search services as a logical adjunct to our growth strategy practice. Our searches begin with an actionable target list formulated from our clients’ search criteria and built from proprietary and open source research, proactive engagement with target companies, triaging of auction targets, and overall leverage of our industry networks.

Full-scope Due Diligence

We support our clients with full-scope commercial diligence of companies across government services and defense sector domains.  Our analysis provides corporate executives and investment professionals with an independent view of a target’s served market outlook, competitive positioning, and projections of revenue and profitability.  Arena’s due diligence support is differentiated by our extensive corporate experience and understanding of how businesses operate in federal markets – management, human resources, business development, contracting, finance and accounting fundamentals, and business operations and associated metrics.

Financial Analysis & Valuation Support

We support companies and private equity investors with detailed financial analysis and M&A target valuation and price modeling.  Our support includes LBO and corporate ROIC analytics, DCF modeling, precedent transaction analysis, comparative multiples and market-based pricing analysis, accretion / dilution analysis and other financial modeling bespoke to a transaction.

Cost and Revenue Synergy Planning and Execution

Our M&A support and due diligence engagements extend beyond just target-specific revenue and profit forecasts.  We work closely with management at the acquirer and target to determine the viability of upside, combined revenue synergy and post-close cost savings and efficiencies tied to integration.

Integration Planning & Post-close Execution

Our team has led or supported 32 successful integration projects over the last 20 years.  Our support can range from executive training and initial planning to full-scale integration management as part of an Integration Management Office (IMO).  We have developed a set of project management tools, templates, databases, and processes specific to government contracting integration. Our focus on critical elements of change management, communication planning, and priority work streams such as HR, IT, and finance & accounting underpin an industry-leading approach to successful M&A execution.

Examples of Our Work

  • Private Equity firms have hired us to provide independent, full-scope commercial diligence of forecasted revenue, profitability, and operational synergy to enable them to bid aggressively, maintain their risk profile, and support a financing business case.
  • The CEO of an intelligence services firm asked us to develop a roadmap for diversification into the C4ISR market. Arena developed a list of acquisitions and engaged directly with potential targets and sell-side investment banks to uncover several actionable M&A candidates. Our client successfully acquired a highly strategic business at an attractive multiple while fundamentally transforming his overall portfolio.
  • We worked with the CEO and executive team of a middle market IT services firm operating in Federal Healthcare markets to develop an M&A diversification and growth strategy. We developed a prioritized search, reviewed more than ten different candidates and helped our client successfully acquire a company that has proven to be a strong strategic, cultural, and capability-based fit.
  • The CEO of a large, private equity-backed government services business hired us to help him integrate a like-sized acquisition target by developing a 100-day plan across all functions and operations of the business, supporting the Integration Management Office (IMO) and facilitating re-branding and related internal/external communication efforts.
  • An intelligence services contractor utilized our integration and operational improvement methodologies to successfully integrate a peer-sized acquisition. We supported all aspects of integration planning, IMO support, cost analysis, and change management over the course of 7 months. Our cost benchmarking methodology and organizational design analysis yielded over $20M in recurring annual cost savings, while the overall integration process was publicly acknowledged as highly successful and industry-leading.
  • A CEO of a middle-market IT firm utilized us to train his leadership team in integration fundamentals, change management methodologies, and “First 60 days” integration planning processes and tools.

Example Transactions