Scott Heimberg Quoted by Law360 on PE Firm Acquisitions of Gov’t Contractor Selloffs
Scott Heimberg, a litigation partner in Akin Gump’s government contracts practice, was quoted in the Law360 article “Gov't Contracting Slump Could Spark PE Feeding Frenzy” on the possibility that private equity firms will ramp up acquisitions of business sold by government contractors during this period of reduced federal contracting.
Heimberg noted, “Government contractors are looking to shed some of their businesses and divisions that are not going to give them the returns they had captured in previous years. I think that gives some opportunities to private equity companies who are looking for bargains out there.”
He said that government services divisions may be one area for bargain shopping, as the U.S. government looks to reduce spending on services and move on after a decade of war, adding “With the war in Iraq ended and Afghanistan winding down, there's less money in the budget for the kind of services that had been making big returns in recent years. That's probably where some of the bargains are going to lie.”
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