M&A to Grow Your Company

(MoneyWatch)  In the defense business the easiest way to get into new markets or business areas is to buy a company already doing that kind of work. This article at the Washington Business Journal describes the acquisition of EWA Services by ManTech. ManTech is already one of the leading IT and Test & Evaluation (T&E) support companies in the country. By buying EWA Services it allows the company to expand into the T&E work that goes on in southern Arizona at Fort Huachuca and Kirtland Air Force Base. The Department of Defense conducts a large amount of testing of electronic systems at these two facilities.
One of the reasons this strategy is successful is that the US government rules on small business and minority owned company participation leads to the growth of many small companies. These often have the majority of their business in one area or for one organization. By buying these companies a larger company can immediately establish a presence in that geographical area or with that organization. Although, as we previously posted on a recent Federal Court ruling may end those rules.