20 Jan Acquisitions Anonymous: The $18M GovCon Business
The hosts break down a fascinating (and complicated) government contracting opportunity: a Southern US-based “consulting” business that’s more accurately a supply chain procurement facilitator with $18M–$20M in revenue and a sticky niche in defense manufacturing support. It operates under a Service Disabled Veteran Owned Small Business (SDVOSB) designation, allowing it to secure federal contracts with competitive advantages — but only if the owner qualifies.
Key Highlights:
~$20M revenue, ~10% margin business with $58M in future contracts
Services include sourcing, procurement, logistics, and staffing for federal clients
SDVOSB status is essential — and may limit who can actually acquire the company
Potential earnings dip in 2025 raises red flags around contract loss or non-recurring revenue
Working capital intensity and transferability challenges make seller financing attractive
